News

The Year of Affordability

Looking to invest in Dubai property? If you think you missed the boat when it came to jumping on the property bandwagon, there’s great news for you. 2017 is the year of affordable housing, with well-sized units in up-and-coming areas that promise quality infrastructure and amenities.

While most projects in Dubai were once targeted at the high-income and wealthy investor, we are seeing a marked shift towards more affordable projects launched to cater to the mid-income segment. Developers are tapping the potential of the undersupplied affordable housing market in Dubai by giving the buyers an opportunity of attractive payment plans. For instance, Dubai Properties Group is offering excellent payment plans for property purchases in its Villa Nova project. The payment plan includes 40 percent payment during the construction phase of the project and the balance 60 percent payment on handover, making the process easier for buyers. Nshama offers a 50-50 payment plan for the recently-launched residences at its flagship project Town Square, allowing buyers to pay the first half of the home’s value over two years in easy installments, with the balance 50 percent to be paid in 10 years. Such plans are a testament to developers’ commitment to providing an opportunity for more people to shift to owned homes in Dubai at extremely competitive rates.

Dubai’s off-plan residential market offers a wide selection of some of the most affordable and finest townhouse communities with scenic views and upscale amenities built by the best developers. Not only are these neighborhoods located in up-and-coming areas, they also offer the investor healthy returns in terms of rental income and capital appreciation. Examples include Town Square, Mira, Arabella and Serena, communities that feature townhouses amidst picturesque surroundings, pedestrian-friendly sidewalks, charming cafes and plenty of public amenities. Opening up of new suburban areas such as Dubai South and IMPZ (now known as Dubai Production City) has been instrumental in leading the shift towards affordable housing in the emirate.

As the UAE rolls towards Expo 2020, ongoing government spending on infrastructure projects leading to the mega event will continue to drive the market and demand for residential properties as well as the creation of 3,500 jobs. Given the significant levels of new supply that is expected to come online in 2017, an increase in prices this year is expected to be relatively modest, with values increasing by less than 10 percent in most of the locations. Moreover, the Dubai real estate market is expected to see a lot of activity as developers look to complete projects in time for Expo 2020.

With property values expected to stabilize towards the end of next year and the real estate market continuing to receive a boost from infrastructure projects linked to the World Expo, get set for a sustainable, growing and lucrative property market.

Minal Patel
Investment Manager
Deja Vu Real Estate