Sun, sea and sand? Check. Impressive landscape? Check. Lots to do? Check. Property market performing well? Definite check. There are a number of reasons why Dubai is the place to invest at the moment, not only is it popular with tourists, retirees and those wanting to live and work there; it is a ‘safe-haven’ for investors. Of course, those who want to live and work in the sunny emirate will require a place to live and that’s where those investors are able to thrive.
So far 2012 has been the year of Dubai with sale prices, rental prices and transaction numbers all seeing increases over the first half of the year. With the Dubai real estate market continually showing signs of recovery from the financial crisis, there has never been a better time for investors to purchase property in Dubai as prices are set to rise in the future. Recent reports from Tamweel have suggested that sale prices have already risen by 10-15 percent with some dramatic rises in more established locations such as the Palm Jumeirah and Jumeirah Beach Residence.
However, the most attractive aspect of the market for investors is the fact that there are a number of sources which are highlighting figures that show rents are rising. The most popular area to rent in the first half of the year was Dubai Marina according to Better Homes with rents in the area seeing increases of 10 percent. It’s not surprising that people want to live there either, with its location next to the Media City and a number of apartments with a water view; it’s like living in paradise. It’s paradise for investors as well, with rents for apartments in the Marina and Downtown Dubai now fetching between DH90,000 and DH120,000.
Property management company Asteco also noted the rises in rents with their latest data stating that it could cost up to DH325,000 to lease certain property types on the Palm Jumeirah. Figures have suggested that the property market has improved every quarter so far with demand outstripping supply for certain properties.
Elaine Jones, CEO, Asteco said: “The increasing rental rates are due to a lack of a certain unit type, whether that is larger three-bedroom units in towers or smaller townhouses in villa communities.
“The reason for the shortage of a particular unit type is either the low number of units initially available or high occupancy rates within certain developments.”
Not only will investors have the chance to gain from impressive rental returns but they will also be investing in a relatively new market that has the room for future growth. As well as this, the value of property in the emirate for the first half of the year totalled DH42 billion according to the Real Estate Valuation Committee and Real Estate Appraisal Center (Taqyeem) at the Dubai Land Department (DLD) based upon 1090 properties that had been valued.
And if that isn’t enough to get your attention, the real estate market is on fire with those properties put up for sale selling in an average of 15 days.
Sultan Butti bin Mijrin, Director-General of Dubai Land and Properties Department said: “It will not take more than a month to find a buyer for a property put on the market in Dubai.”
The value of property transactions had increased by a whopping 106 percent for the first half of the year with the number of transactions also seeing a rise of 69 percent according to Hamptons MENA.
Head of Operations, Hamptons MENA, Niraj Masand said: “The growth trends recorded by Hamptons MENA are a strong demonstration of the rising market confidence in Dubai’s property sector.
“The increase in number of buyers, compared with the number of sellers, throughout the year also highlights that the demand-side is stronger, which will have a further positive impact on prices, in turn benefiting the investors.
Masand added: “Notably, we see highest demand in established communities such as Emirates Living, Dubai Marina and Downtown Dubai, with an average ratio of sellers to buyers at 1:2.
“We are confident of a positive growth outlook for the property sector, which has gained significantly from the overall growth of Dubai’s economy led by its core sectors of retail, tourism, hospitality, trade, aviation and logistics.”
With all of the positivity in the market it is unsurprising that investors from afar have opted to purchase property in Dubai with British investors alone spending DH2.5 billion in the first half of the year alone, obtaining 1564 properties. With uncertainty in other locations that have been previously popular, it seems that Dubai is the way forward and 2012 has proved that whilst other areas are still suffering, Dubai is pulling back and getting the market thriving again.
This article was kindly contributed by Beth Hepple from www.selectproperty.com