Time to buy Dubai property is now
Filed on October 13, 2015 | Last updated on October 13, 2015 at 06.29 am
Any area, where there is infrastructure spending or is the subject of touristic attractions, such as the iconic new structures that are coming up around Dubai, will see the return of investment in terms of capital appreciation if bought now.
This was the message being broadcasted at the propertyfinder.ae investment seminar in Dubai on Monday.
“Given the location of the Expo 2020 site, I believe that investors will still find investment opportunities along the corridor running from the new airport down Sheikh Mohammed Bin Zayed Road, taking in areas such as Dubai Investments Park, Jumeirah Village Triangle, Jumeirah Village Circle, and Sports City. These areas are ideal for apartment transactions. For villa purchases, the Al Furjan area will be an interesting one as this area is on the red line metro extension,” said Mario Volpi, head of projects at property management company, Asteco.
Speaking on property prices in Q3 2015, Volpi said that the last quarter saw sale prices soften further.
“Looking at last quarter’s rental market, we saw some stability, with significant differences between certain areas. We were expecting approximately 7,000 residential units to become available later this year, but many of these units have been delayed, so they will fall into next year’s inventory and will have a softening effect on the rental prices in early to mid 2016,” he informed.
He added: “Looking at the sale prices for apartments, we can see that the overall transaction levels were low. This was mainly due to the disparity between buyers and sellers’ expectations of the market.”
Volpi also noted that one of the trends in the market today is buyers looking for smaller and more affordable homes. Dubai, he said, has learned much from its mistakes in the past, and as a result the market is maturing.
“Since then we have witnessed more protection for buyers, more legislations have been introduced and the rights of the buyer have been greatly improved.”
Not withstanding this, he warned, there is still caution in the market, which is understandable taking into consideration the choices in inventory that buyers are faced with, whether offplan or already built. Developers of offplan properties today have to be creative when it comes to attracting buyers to their projects, he noted.
Volpi also explained that it is clear today that the need for housing is outweighing the actual inventory available. The million dollar question, he noted, is where to buy to maximise your investment.
“The answer to that lies with the buyer’s motivation,” he said. “For investments that will attract capital appreciation, it’s true that established more popular areas are often overlooked, as they are perceived to be too expensive. The obvious answer is to look for areas that are not established and are still being developed, where an investor will potentially find comfort in the knowledge of possible capital appreciation.”