UAE is world’s second best place to invest in property
Bayut.com CEO Haider Khan reveals now is the time to “lock in” on prices
There has never been a better time to buy property in Dubai, according to property experts Bayut.com.
Areas such as Dubai Marina, JLT and The Springs already have a high rent yield of around six percent.
And, with the raft of Government changes coming into place – from ten-year visas, company ownership and new retirement visas – Haider Khan, CEO of property search giant Bayut.com, insists “locking in on a great price now” is the key to building a safety nest.
He told Time Out Dubai: “It’s a buyers’ market now and if your mortgage works out to be more cost-effective than rent, you could actually end up saving money in these years and have a property to your name or rent it out and have part of the rent cover your mortgage.
“Not only will you get to enjoy living in your own home while you are in the city, if you do end up moving away, you can also benefit from passive income in the form of rent while you settle down in your new country of choice.
“As per a report by Business Insider, the UAE was, in fact, the second best country in terms of rental yields for overseas property investors.”
Last year’s report ranked the nation second only behind the Philippines in terms of average rental yield a landlord can expect before taxes and costs.
It comes after a study by Bayut.com found Dubai Marina retained the top spot for buying apartments in the city in 2018.
Average prices stand at Dhs850,000 for studios, Dhs1.19million for a one-bed and Dhs1.95m for two-beds.
“Dubai Marina” was the most searched for area in flat sales while “Marina Diamonds” was the most popular building – accounting for 21 percent of searches.
Coming in second for buying apartments was Downtown Dubai, which is the only area on the list where prices remained mostly unchanged at Dhs1.03m for studios, Dhs1.6m for one-beds and Dhs2.95m for two-beds.
International City was third and saw an average 12.9 percent fall in studio prices to Dhs270,000 – one-beds are Dhs385,000 and two-beds are Dhs710,000.
The area notched the highest return on investment, boasting around 9.3 percent rental yields.
Khan said even residents who are considering moving abroad in the next few years could still capitlise on the undervalued housing market.
He added: “Property is one of the most popular types of investments in the world. So, even if you don’t see yourself living in Dubai in the next five years, it is still a good time to buy a home here and build yourself a little safety nest.”
However, renters should also make the most of the current climate to upgrade in size or negotiate a lower price with their landlords.
He added: “If you are keen on remaining a tenant, be smart about making the right decision when it comes to your rental property.
“Now that prices are falling, it could be the ideal time to upgrade to a preferred area or a bigger property within the same budget, also read 888 rat or even negotiate the rental price of your current home.
“Do the right research before making any decisions and look out for lucrative offers from brokers, including substantial discounts on maintenance costs and agency fees.”
It’s also an excellent time to rent. For more on the subject tune into Time Out Dubai‘s brand-new podcast The Big Listen.