Making the real estate and property investment in Dubai can be the smart choice, particularly right after the passing of Law Number 7 that enables ‘foreign freehold ownership of property’ in a few selected Dubai areas.
Nevertheless, generally there still continues to exist of some adverse factors that could cut the demand of the area. Those factors including the ever rising rate of inflation as well as increasing of living cost.
Compare Dubai Property And Living Cost
A good instant of inconsistency in rates of inflation rates and increasing of living cost in Dubai is you can do a little checking on the cost of a child private education. When you make a comparison said the UK, the education fee will be about 46,000 Pound per year but you will have to pay for double that figure in Dubai which unexpectedly causes it to be much more expensive for you to make your living in Dubai than in UK!
If we are looking at positive side, we can said that inflation can actually be a good sign which indicate that the Dubai economy is in uptrend and is strong enough to handle price increases that might have an effect on the real estate and property market. This may create a misconception to many people as they will think that the real estate and property in Dubai can endure an additional growth in price.
The negative side for the inflation would be, by cutting down the value of the monthly disposable income that the Dubai residents receive, this is going to create an impact for those who need to pay for accommodation as well as deteriorating the attraction of tax free living in the region.
As of now, there are so many skepticism in term of view in the real estate and property in Dubai, and there is certainly more mist covering the Dubai real estate and property investment market.
Real Estate and Property Market in Dubai
Many people are start questioning whether the real estate and property market in Dubai in going to recover soon or will take another big dip in the near future? The bright side would be of the passing of Law Number 7 by Sheikh Mohammad Bin Rashid Al Maktoum that is expecting to create an increase profit for real estate and property market in Dubai.
Dubai continue to be an emirate that is tax free where there is undoubtedly an excess of job opportunities on the market ready for competent expat professionals.
Since there are a great number of job opportunities are readily available, thus salary packages and incentives most companies offer are generally breathtaking, which includes the benefits of stay in Dubai and rightfully stay away from paying any tax to the local government. This benefit has caused a lot of foreigners coming to Dubai to work. Due to ever increasing of population in Dubai, which means that demand for housing and property in Dubai is also very high.
In accordance with developers that based in Dubai claiming that there is an intense demand for completed Dubai property and this is the main factor that cause the rental rate to rise so rapidly. As compare to last time those expatriates can only rent the property when they came to work in Dubai, now they are qualify to buy and own a property. Most investors possess with completed investment properties were increasing rents to make more profit and end up the government need to go in for intervene.
What Dubai should do now would be to cultivate and keep a brisk resale property market, as those people who move to live in Dubai will need to have the opportunity to buy property, or otherwise have the chance for renting and purchasing a finished property, which if taking place properly will be able to get rid of the need to restrict the increment of rental rate and so can bring in more vibrancy to Dubai real estate and property market.
Being a direct response of the truth that a lot of buyers who purchased off plan Dubai properties are anticipated to consider residence in the property that they purchase upon completion, there’ll be significantly less demand for both resale property and rental accommodation.
Can this be the reason that cause the current increase of constructors that providing extraordinary rewards to investors who want to buy unsold off plan homes?
A few constructors have reportedly providing prospective buyers luxury cars as well as many other benefits if they are willing to buy new off plan properties that have about three year construction period.
