In this episode of Expert Advice, we sat with Tulip Dsilva, the Investment Manager at Banke International Properties LLC, to discuss the growth of the affordable property market in the UAE.
Since 2019, there has been a host of changes in the real estate investment sector, particularly in the affordable segment. We discuss the possible reasons why investing in affordable property has taken the front seat, the most popular areas to invest in and more in this edition of Expert Advice!
You can watch the full video below, or keep reading for highlights from the episode
What factors have influenced the rising interest in buying property in the UAE?
Considering the UAE population is made up of more than 90% of expats, the demand for housing is heavily influenced by their interest in buying property. Tulip shares that since mid-market houses in the UAE are more affordable than those in major cities, several high-income groups who plan on staying in Dubai for a longer period are looking to invest in real estate.
To match this demand, developers have come up with budget-friendly prices for stock and off-plan units across the city. They also offer affordable payment options, making the idea of purchasing property more attractive than ever. They have also come up with easier recovery options.
Tools like TruCheck™ have also made property search much easier. The ability to filter genuine, available properties in the UAE using TruCheck™ helps property seekers by reducing the number of viewings and time spent in negotiations significantly.
Which areas are most popular for affordable property investments in the UAE?
According to Tulip, neighbourhoods that offer affordable housing options with great infrastructure include Arabian Ranches, Town Square, Mirdif, Al Warsan, JVC, JVT, Springs, Living Legends and Mira Oasis.
Newer neighbourhoods that offer affordable properties include Dubai South, Dubai Investment Parks, Al Furjan and Dubailand, which includes Living Legends, Villanova, Arabian Ranches 2 and 3, Serena, Casadora and Cherry Woods; Dubai Studio City and IMPZ.
On being asked about the budget range for buying a villa in affordable communities, Tulip says that prices start from AED 1.6M for a 3 – bedroom villa and up to AED 4M for a 4 to 5 – bedroom villa.
How have the ROI trends changed from 2019 to today?
Tulip shares that the Return on Investment (ROI) for real estate depends on two factors: the income that it generates and the capital growth at the time of sale. Unlike the former, capital growth is generated only after the property is sold and relies on the market conditions during the sale.
On broaching the subject of the real estate market in 2019, Tulip says that the dawn of the pandemic caused real estate prices to drop significantly. Many factors caused this drop – some personal to investors, while others being market and property specific.
Today, two years later, there has been a surge in property prices, notes Tulip. There has been 100B worth of sales in Dubai for the first time, which reflects the health of the market today.
About Tulip Dsilva
Tulip Dsilva is an Investment Manager at Banke International Properties. With more than eight years of experience in UAE real estate, her in-depth understanding of the industry has played a key role in the growth of her career. She is dedicated to offering data-backed information to her clients, helping them make informed decisions regarding investing in real estate in the UAE.
About Banke International Properties LLC
Banke International Properties LLC is a premier real estate agency based in the UAE. Their team of professionals cater to every major area and are committed to offering the highest level of service to their customers. They promise to help their clientele find the best prices for your dream property in the country.
That concludes our Expert Advice section for this month. The rising demand for property investments in the UAE can influence several other positive developments in the country, which the residents and investors look forward to seeing with time.
If you’re keen on finding an affordable property in Dubai, check out our guide to the most affordable apartment communities in Dubai. Learn about the latest developments in the UAE exclusively on MyBayut, UAE’s best property blog.