As Thomas Jefferson once said,
“never put off till tomorrow, what you can do today”. This has never been as
relevant as it is in our real estate industry as investors are encouraged to
buy and rent real estate now, before prices begin to rise.
According to reports by leading
real estate companies in the UAE, now is a good time to invest if you are
looking for a new home in Dubai. The reports show that due to recent trends in
the market, prices seem to have reached their lowest point and from now on,
they will be expected to rise.
According to the reports, there
are several reasons to invest now. House prices in many parts of Dubai are now
as low as they were in 2005, and investing in a home with a good view and good
location would be a solid investment. Sale and rent prices are becoming more
stable and with many new developments in many in-demand locations, investors have
a range of residential real estate to choose from. Investors should also note
that because the real estate market in Dubai is still developing and expanding,
the difference between the price of a high quality property, with good
services, maintenance and security, and a lower quality property is not
significant. This usually happens when a market matures and as a result,
investors can find good deals if they do their homework.
Furthermore, banks have once
again become active on the market and will provide customers with competitive
rates on their home finance. Their services are competitive now, but they may
not stay as affordable as the market recovers.
Remarkably, the reports show that
even though investor confidence is higher than before, most investors are now
influenced by the location of the property rather than the price. There seems
to be a divide between the level of investment in prime locations and those
that are less in demand, despite the fact that these continue to be more
affordable. This is due to the fact that in the current market, there are
reasonable prices to be found all over the city.
For example, apartments in Dubai
Marina and Jumeirah Beach Residence (JBR) continue to be in demand, even though
they are more expensive than apartments found in International City or
Discovery Gardens. Now, more than ever, waterfront properties seem to be
saleable. Owners that have investments in these prime locations are reluctant
to sell their investments at this time and as a result, these locations have a
higher demand than others for the simple fact that there is less space
available. Investors are learning that a practical investment in a good
location is a solid and sensible move and this is a trend that will continue as
the market recovers.
It is as good a time as any to
invest, if the investor chooses the right place. As the reports show, it is not
about when you invest or how much; it is about that good old real estate maxim,
“location, location, location”.