Given the current market trends, what’s your piece of advice to people who are still reluctant to buy?
The age-old question of do I buy or not, depends on how long the potential buyer is intending to stay in Dubai. There is high buyer confidence in Dubai and the city offers a safe and stable economy and environment. If you have a medium to long term plan to stay in Dubai, then buy and maximize your savings and earnings. If only planning to stay for a short term, renting may be preferential, but you don’t accumulate any value from monthly rental payments. Generally, residents who are in it for the longer term can live through any changes or corrections in the market and still come out on top when they choose to sell. It is higher risk for short term residents buying property as a quick exit strategy may not always deliver – but then that all depends on buyers’ appetite for risk! Buying long term for either end use or investment is a no brainer!
Rent vs buy has always been a much-debated topic. Do you think there’s a shift in mindset of renters?
The debate between renting and buying is seeing a shift, particularly among renters facing consecutive rental price increases. Many are choosing to move to more affordable areas rather than downsizing. For instance, a recent trend has seen tenants relocating from central areas like The Greens and Dubai Marina, to the more spacious and affordable properties in further locations such as RAK, facilitated by improved transport infrastructure. There’s also a notable interest in mid-price bracket communities like JVC, where mortgage payments can be comparable to past rental rates. This trend reflects a growing inclination towards purchasing properties as a long-term financial strategy amidst rising rental costs. There is also greater demand from new expat residents who immediately want to purchase property and avoid annual rental agreements. They await their six months employment term to apply and qualify for a mortgage.
Which communities would you recommend to renters who are planning to buy in affordable areas?
For renters considering buying in affordable areas, we recommend looking into communities such as Jumeirah Village Circle, Arjan, Al Furjan, Damac Hills and Dubai South. These areas offer a good balance of affordability, lifestyle, and location. In Jumeirah Village Circle, in particular, today’s mortgage payments can match yesterday’s rental payments, making it an attractive option. Additionally, older communities like The Springs and more affordable towers in Dubai Marina, such as Marina Diamond, also present viable options for those looking to buy within a budget.
