If you are an investor or planning to buy a property in Dubai, you might wonder about the status of the property market. With the Dubai Expo 2020 being postponed because of the pandemic, one can question the outlook for a buyer like you.
According to a latest report, the impact of the COVID pandemic across the GCC countries has caused some changes in their economic policies to support businesses and property investments this year.
Amid a global slowdown of social movements and its resulting economic effects, the UAE government has set the grounds for safe investments in Dubai. And you could find an exciting deal in a property for sale in Dubai this season.
Dubai 2020 Expo delay – No cause for concern
With the current Corona threat, there’s news of the much anticipated 2020 Dubai Expo, postponed by a year. The Expo was planned as a six-month-long celebration of UAE’s significant global rise over the last 50 years. Although a delay in the Expo 2020 may be thought of as a minor set -back to the UAE economy, it may not altogether have much effect in the property market. To maintain the market, the government has made some advantageous changes to its policies for the local and expat property investors. 2020 can be an overall great year for real estate with the ‘Golden visa’ plans, lower property prices and better bank lending.
You can expect softened lending policies in banks this year. Following the Corona virus outbreak, the UAE government plans on extending its lending policies to support more investments in the Dubai property market.
If you are a first-time investor in Dubai, there are fantastic options in financing the property. You can avail a higher loan to value on your mortgages, which is an offer open to expats as well as Emiratis. This increased offer would apply to off-plan properties as well.
Furthermore, the UAE government has approved the central bank to go forward with an increased exposure from 20% to 30% in the real estate sector.
So, there’s a straightforward opportunity for you in 2020.
You will find this year friendly for buying a property with great deferred payment options. Therefore, the idea of a favorable investment is a good deal for those of you who would otherwise pay rent.
A report by the Property Monitor Dynamic Price Index indicates the prices trend across 42 communities in Dubai. The index stated that properties have become affordable among an increased segment of the population in the UAE.
An interesting observation – the investor profile of the property market has evolved in the last decade. The current buyers are a healthy mix of end-users and seasoned investors, who invest in a property for self-occupancy or rental returns.
Either way, it is a win-win. If you are an owner-buyer, you may be looking at purchasing a home to live rather than renting, owing to the attractive pricing and payment plans. On the other hand, you can explore properties at this year among appealing payment plans or stunning ready ones at softened prices. There’s more advantage this year for any investor’s consumption.
In essence, you would enjoy an instant gain and return on investment with income-generating properties without having to shell out capital gains tax in comparison with property investments worldwide. Hence, there are more direct benefits for international investors this year.
The demand-supply rule. You may notice a slight shift in the focus, with developers planning their launches and modifying their products based on the demand. In other words, the market seems to have reached a level of standardization. You will find properties that suit a majority of the residents from the salaried and the business backgrounds. It’s a general trend, a mature market where buying a property in Dubai is on an upward curve.