Is it a good idea to buy or rent property in Dubai?

Well, since the real estate industry of Dubai is booming; and investors are looking for opportunities. Moreover, there is an increase in European demand, and investors are planning to invest more in the real estate industry. Yes, it is a good idea to invest in property in Dubai. But, if you can, purchase the property as it is financially more competitive than renting the property. In real-life cases, you can take the example of Muhammad Iqbal, who has been living in the UAE for the last 25 years. But, here is a catch; he lives in a rented property and is now planning to buy a villa. According to the Pakistani expat, the returns on property investment have surpassed global cities, including London.

The Pakistani expat Muhammad Iqbal holds experience in the real estate industry of Dubai. As per his experience, he has shortlisted villas in Jumeirah Village Circle and MBR City. Moreover, he has also shortlisted Ras Al Khor in Dubai as his first property purchase. Also, he plans to pay in cash for his first property transaction. As per the research conducted by Mr.Iqbal, there are more benefits in buying the property rather than renting. The amount that he has spent for the last 25 years was of no use to him. You never know; you may end up paying a lower amount as a mortgage installment than rent for the same property. According to the source, properties in Dubai are now much more affordable; and a drop-down is also expected by 5-8% this year.

However, the pandemic slowed down the economic sales momentum; but property prices became affordable for many people. Not to mention, progress was shown in the real estate of Dubai. Owning a property is like an asset; it can be passed on to future generations. Also, you can get a visa with your property purchase if you plan to live in Dubai for a long time.

Another story of Indian expat, Shruti Sayed, lived on rent for almost four years and then moved to her townhouse. Moreover, she also invested in a villa in Jumeirah Park, and now she plans to invest in other properties for rental purposes. According to Ms.Sayed, living in a rented property comes with a lot of issues. You can never alter anything on your own; there is no freedom to add anything according to your needs and tastes. There is no sense of belonging, and you do not feel attached to your home. However, Ms.Sayed now owns a villa in Jumeirah Park and a townhouse in The Springs.

There is no capital appreciation in rented properties, and capital appreciation is the most significant benefit of real estate investments. People wait for increases in prices to sell the property and buy the property; they wait for the prices to decrease. However, the property purchase process in Dubai comes with many benefits, such as citizenship to foreign investors, new visa policies, and many other initiatives.

Moreover, according to a top executive of – Dubai’s real estate company, there are other after-effects of loan to value ratios and low-interest rates. However, such factors encourage buyers to jump into the market with excellent chances of achieving higher returns. Many people buy second properties as an investment as the returns are pretty good.

If you purchase a property through a real estate broker, you must pay him 2 percent and 5 percent as property brokerage. Not to mention, you will also have to pay 4 percent to the Dubai Land Department (DLD). However, if you rent a property, you will have to pay 5 percent for an unfurnished apartment and 10 percent for a furnished one. Moreover, tenants sometimes also pay 5 percent to real estate brokerage for setting up the contracts.

There is a long debate on whether it is a good idea to buy the property or rent the property. But, your property will provide you with benefits on a long-term note.