Property in Dubai
Today, the UAE is one of the few countries that maintains neutrality in relation to all states of the world. You can still freely fly here on a direct flight from many countries, there are no restrictions on buying real estate and obtaining a resident visa. If you want to buy apartments in Dubai the UAE at the most profitable price, please contact Ax Capital agency. Their experts will carefully study your requirements and select a number of properties that are ideally suited to them. And due to cooperation with the developer, they are ready to make even more profitable offers to the customers.
Since 2013, the supply of real estate in Dubai has significantly exceeded demand. This trend continues. But even in such conditions, thanks to the growing popularity of the emirate as an international investment and business center, there was a positive trend in the cost of renting and selling local housing. The pandemic has spurred interest in the destination, and price increases have accelerated.
Real estate in Dubai in 2022
Throughout 2021, the cost of housing in the UAE continued to grow steadily. According to the Dubai Land Department, there were 15% more property transactions in January 2021 than in January 2020. And in January 2022, the number of transactions increased by 75% compared to January 2021, while the total value of transactions increased by 145%.
Dubai is one of the developed countries with a steadily growing real estate market. According to the assessment of the Swiss financial holding UBS Global Real Estate Index, the emirate has the lowest probability of a bubble in the world, that is, an excessive increase in the value of assets compared to household incomes and interest rates on mortgage loans.
Demand in the real estate sector is actively supported by the government of the United Arab Emirates: due to new bills and reforms, investors and buyers are getting new opportunities. This is especially true of changes in the Golden Visa rules, which almost immediately began to stimulate the flow of investment into the Dubai real estate market.
Discounts from developers
Potential property buyers have begun to worry about rising mortgage rates. However, developers are trying to meet halfway, making unique offers to reduce the financial burden on customers.
It is reported that in recent months, many developers offer buyers various discounts. It is also not uncommon for proposals to extend the payment period after the transfer of the property.
- Now, potential buyers can choose housing with a total discount of 15-20%.
- But at the same time, there is a downside: developers are increasing advance payments, which now fluctuate at the level of 30%.
It is also worth noting the changes in the real estate market associated with mortgage transactions. To date, the volume of transactions with the use of mortgage coverage has decreased by almost 13%. However, this situation does not affect the decline in overall demand: real estate in Dubai is still the most in demand. True, buyers prefer not to use mortgage loans, but pay in cash or cryptocurrency.
Alternative mortgage options in Dubai
Investors who have purchased property in Dubai on credit are trying to ease the financial burden. Specialists report that mortgage rates may rise to 7% in the near future, and today many buyers who wish to use a mortgage need to look for alternative financing options.
- If a person is not able to fulfill all his mortgage obligations, he can turn to developers, many of which today offer a variety of rental schemes with subsequent redemption.
- If you wish to obtain a mortgage loan directly from a banking institution, you can take advantage of the opportunity to open “offset” savings accounts. The peculiarity of such accounts, as experts explain, is the ability to save a significant part of finances on interest.
Investors who wish to purchase real estate in the UAE through a mortgage loan are not recommended to hesitate. For example, today you can apply for a mortgage loan at 5%, but by the end of the year, experts say, the rate will almost certainly rise to 7%. And the main reason for this increase is the increase in interest rates in the United States.
However, the number of mortgage transactions is declining today: most investors prefer to buy real estate for cash or cryptocurrency. How long will this tendency last? We’ll see.
Real estate agency in Dubai
Do you want to buy property in Dubai, but find it difficult to choose? Ax Capital agency specialists are ready to help you find the best properties at the most attractive prices. They will advise on all issues of interest and help you choose the property of your dreams.