Expats who come to Dubai, mainly do so with the intention of earning money to have a nesting fund for the future. Often, they leave families back in their home country and feel compelled to return to them in a few years. Buying a house in Dubai is really not on the top of their mind.
The modern expat has changed, preferring to stay longer in Dubai due to its outstanding infrastructure, great opportunities for employment and schooling for their children. Add to that, the extraordinary growth Dubai is seeing as a global city and heading towards more Smart Dubai initiatives. Although its real estate took a hit in the last decade, the moment has come for revival by way of foreign investments and new businesses in making.
Developers have also come up with attractive offers and schemes to make home buying affordable and possible for many expats who yearn to be with their families under one roof.
Markdown prices and freebies
As the market stands on oversupply there is more competition among developers. Each one is coming up with an attractive offer of their own. From marking down sale prices to offering longer term payment plans, they are aiming to convert buyers’ interest to buying decisions. Some of them exclude property registration fees and offer no service charge fees for limited time. Home buyers who shop consciously are bound to benefit from these offers.
Emaar with Dubai Islamic Bank, is introducing an exclusive financing scheme to help customers get more out of their investment. With a limited time offer and specific conditions, interest in home buying is expected to soar during the offer period.
Depending on the agreement one has with the seller, rent to own scheme works best for those who aspire to own a property but are not quite ready to make the commitment. At the end of the rent or lease term, the buyer would have secured their right to own the property at an agreed price by paying a percentage of the sale price in advance.
Housing for the budget-conscious
Universally, smaller houses sell faster than large mansions due to its affordability. As major real estate developers realize this, they have found a sweet spot in pricing their units. Most recently, a news report suggested that houses in the range of USD 400K (AED 1.4 million) were expected to yield best long-term returns of 7-9% in Dubai. The average sale price at Palm Jumeirah, one of most expensive and highly desired neighborhoods of Dubai falls in the same range. Villas and Townhomes in Reem and Town Square start from as low as AED 200K in average sale price and are quite popular among home buyers.
As one digs deeper, marketing by developers get more creative and beneficial to property investors. The right amount of financial education and caution should be used before committing to the schemes. Using professional legal consultation, sound financial advice and talking to a licensed agent will cover most of the bases. In a competitive market, the customer is the king and should be aware of the benefits they can avail before completing a home ownership deal.