The already finished real estate in Business Bay is in high popularity among foreign investors due to its falling prices. Today the property market abounds with housing options under construction offering higher investment returns and opportunities for quicker resale. Studio Business Bay and multi-bedroom apartments gain the popularity of citizens of other countries. Let`s find out what type of apartments are more requested and interesting to potential home buyers.
The gap between the secondary real estate market and properties off-plan
The significant gap between the prices of under-construction properties from developers and secondary market housing in Dubai is beginning to widen, creating more opportunities for buyers. On average, recent launches of new off-plan projects in Dubai are offering prices that are somewhere between 14 and 30 percent higher than comparable finished units - and that's a big difference, and it could increase even further.
The statistics on the neighborhoods
To get a vivid picture of the price difference, let`s have a look at the types of real estate in several neighborhoods of Dubai.
- If we talk about specific areas, in Business Bay, the minimum price for real estate is $190,000 (11.5 million rubles). It is this area that in 2018 brought the highest dividends for property owners in Dubai.
- In Dubai Hills, the average price per square meter of a home sold directly from a developer is US$ 4704, compared to US$ 4116 per square meter for an apartment bought on the secondary market. Dubai Hills is currently one of the most popular areas among investors and end-users alike, with new projects such as Emaar's Address-branded residences soon to follow.
- In Dubai Downtown, the price from the developer averages US$ 7,644 per square meter compared to US$ 5,880 in the secondary market. According to the statistics, it is almost the same in Palm Jumeirah and Dubai Marina.
Reasons for the higher cost of off-plan property
Building materials have an inflationary cost, and these days, more and more builders are adding more luxury and more details to new projects. That's why there's such a difference between a finished home and a home under construction per square meter.
And it's an opportunity for buyers, especially end-users. Since mortgage rates have risen significantly since the beginning of the year, buyers have to look for options to reduce their overall financial obligations. So if they can get a mortgage on a ready-made home that is 10-30% cheaper than the off-plan option, why not turn to the ready-made real estate sector.
For off-plan sales, the average price per sq. ft. is currently US$4,328 compared to US$3,710 in July 2020 and US$2,802 in July 2015.
The buyers of off-plan property in Business Bay
By the end of August, it was already a busy month for off-plan and new launches, with developer Azizi releasing its most premium set of properties on the market, and 24 of those buildings are in the Riviera community in MBR City.
The off-plan property in the district is a choice of many foreigners. Business Bay represents a successful combination of recreational opportunities and favorable conditions for business. That`s why the neighborhood is equally appropriate for dedicated businessmen and for their families.
Things to consider when buying property in Dubai
Given that the real estate is purchased in another state, at any stage of the transaction can be complicated. There is a requirement in the UAE legislation that all real estate transactions, including the purchase and sale of land, must be carried out with the help of intermediaries. The most common way is for buyers to ask a long-time real estate agency to have the deal done by professionals who know the national legislation and the ins and outs of the procedure of obtaining a property. There are 47 freehold zones in Dubai, and a competent real estate agent can find a suitable option. An alternative solution - is to rent a property for up to 99 years (leasehold), but only in certain areas of Dubai. Each of these deals has its own pros and cons.
Real estate agency in Dubai
For those who are thinking about buying real estate abroad, the UAE is not a bad option. The advantages of investing in Dubai real estate are indisputable, as we are talking about a significant increase in income, a high standard of living, and wide opportunities offered by the status of a resident of the Emirates. All that remains is to choose a suitable property in Dubai and execute the transaction in accordance with all the requirements. To perform these steps successfully, it is advisable to contact the reliable real estate agency Ax Capital. The professional team is ready to provide updated information and qualified assistance in the process of the deal.
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