Dubai Property Market - Buy or Rent?

Property market in Dubai accounts for a major economic force in the emirate. All of us know about the state of the art property projects Dubai comes up with every now and then. Property market in Dubai has been witnessing a growth spurt over the last few years. At least for once, expatriates moving to this wonder city ponder over whether to buy or rent property in Dubai.

Expatriates constitute of a major portion of Dubai’s population. Seeing that the property market in Dubai is quite high in demand, they are often caught in the dilemma of paying mortgage for a personal property, or going for rent which is usually lower than the former.

Looking back at Dubai property market

2002: For the first time in the history of Dubai property market, it became possible for foreign nationals to own freehold property in Dubai. At that time, property prices were quite lower as compared to the present scenario in Dubai. Consequently, with lower mortgage rates to pay, those who bought property at that time took a wise step indeed.

2002 onwards: Due to cheaper property prices, more and more people went in to buy property in Dubai. As a result, there was a great demand (exceeding even supply!) which in turn made the prices shoot up. At present, rents are usually lower than monthly instalments.

Buy or rent property in Dubai – some pointers

• Stay of 3 years or even lesser period: Don’t buy property in Dubai if you plan to stay in the emirate for three years or less. Renting property would be a better option for you. A number of projects will soon get completed in Dubai making rents sink a bit.

• Stay of more than 3 years: If you’ll stay in Dubai for more than three years, you could definitely consider buying property in Dubai. Dubai property experts believe the market trends will reverse in a few years. So buying property in Dubai now may turn out to be a profitable step in several years. Choose a longer period for paying back your mortgage so that it’s not a crunch on your pocket. You could even rent this property later.

Points that will help one decide whether to buy or rent property in Dubai

• How long do you plan to stay in Dubai?

• What kind of property do you wish to have?

• When do you want your invested money back?

These points are paramount in giving you a sure shot answer to your worries. Because of the dynamic nature of property sector in Dubai, one needs to sort these wrinkles out.