3 Things that will shape real estate in 2019
Last year, Dubai had introduced some new rules and regulations such as VAT, long-term visas for expats and had other changes such unstable oil prices, incline and decline in property prices to name a few. The country has achieved so much with its top-quality infrastructure and vast transformation, offering its citizens and residents a range of affordable and exciting luxury properties along with exquisite high-end finishing, situated in sought-after destinations.
However, like economies, the highly competitive property market, property sales prices, rental yield, rental prices change in Dubai.
And so it’s important for buyers and investors to understand the current real estate market trend and should be aware of the movement of property prices – or the asking price - and rental yield as well as which areas in Dubai offer favourable market price.
Apartments, townhouses, and villas in different areas such as Bur Dubai, Business Bay, City Walk, International City have seen both progression and fluctuation of property prices sale last year. Depending on the area, size per sq.ft., and bedroom sizes, each area is different.
For example, the property sale prices of Bluewaters market decreased from AED 2,118 to AED 2,022 per sq.ft from January to end of 2018.
While for a four-bedroom apartment it gained 2%, from AED 2,205 to AED 2,249 per sq.ft. It’s the gross income, without considering the service charges.
On that note, it’s highly important to keep aware of the property prices in the ever-changing market. Much like stocks, another aspect to keep an eye on is the Dubai rental yield. Whether it’s apartments, villas and townhouses, renters should be aware of the movement of Dubai’s rental prices and which areas offer reasonable rental amount.
The rental price for a three-bedroom townhouse at Arabian Ranches, Dubai’s prestigious residential area is filled with multicultural expats and well-established communities, had a - 14.5%, from AED 163,750 to AED 140,000.
The third factor that is also important to take into consideration is the annual rent and the rental yield. At fam Properties, we provide just that to help you find that - the total yield does not consider the service charges – to help you search for the area that suits you best from Downtown Dubai, Dubai Silicon Oasis to Discovery Gardens, Motor City to Palm Jumeirah.
It is important to be well-informed about the latest rental market trend as well as the progression and fluctuation of property sales prices, rental yield, rental prices change in Dubai.