Dubai has many sources to its income like tourism, oil and other things, but one of the most effective and important sources is real estate. Real estate not only provides Dubai with income but also tourism like people from different countries come to visit Burj khalifa or Burj Al Arab. In this article, you will update yourself regarding the current trends of Dubai real estate.
Current state of real estate market in Dubai
When we examine the Dubai real estate market, we will realise that it has not been down. Investors are still profiting from investing in famous areas like Dubai marina or downtown Dubai. Secondly, it can be noted that Dubai has an edible tax. It does not charge tax on income of a resident or property of a resident. One of the major factors of the demand of real estate is increasing population. Many people are there to reside and work so they can generate high income. Interest rates are one of the important factors on homebuyers to finance their properties and their ability to finance properties. Low interest rates attract developers because it affects financial costs while higher rates can decrease demand.
Urban vs suburban trends
These days many people are seen migrating to the suburban areas of Dubai rather than travelling to the main city centre. There are many benefits of travelling to the suburban area of Dubai:
- Break from the hustle and bustle of the city.
- Quiet place limited to only a number of people.
- It provides peace and an inner feeling of quietness.
- You are close to many malls, schools and parks.
- Larger homes, huge spaces and feeling of community.
- Better work life balance since there is no need to travel to the city daily.
- There is clean air and they are closer to nature than the ones living in the city.
- There is decreased air noise and water pollution which provides the residents a happy and healthy life.
Some of these suburban places in Dubai include Dubai south and Jumeirah village circle (JVC).
Housing affordability
Nowadays, developers are trying to provide the residents houses within their range. Doing this will raise the demand for their property and it will also provide the residents an affordable place to live. But why are they not implying this in Dubai? There are several obstacles that they need to go through like:
- Land and construction costs are very high.
- Competition with other developers.
- Luxury and regulatory environment.
- Developers have a lack of incentives.
When taking an example of a millionaire and a billionaire, we will see that a billionaire can buy a multi million property in no time to add to his collection or to reside in it but a millionaire will have to think about it more and will even have to work more to buy the property. Property prices have gradually increased by 90% but now it has been said that the real estate market is nearly stable and will decrease after some time. MBR properties for sale are also available.