When you want to rent a well-furnished home, it becomes a hassle-free experience as the landlord will maintain and repair it from his/her own pocket. So, the logic of renting an apartment is great, it costs you a lot less, and you need to put less effort. Also, getting out of the contract of tenancy is easier. Now, in UAE due to the stabilization of the rental market, buyers are getting good offers.
The long-term benefit
Though renting looks benefit, if you can buy property for a long-term, you are going to make the actual benefits. If you are staying in Dubai for 5 to 7 years or more, why would you rent? You can easily afford the up-front and back-end costs. The up-front cost consists of a down payment of 25 percent, DLD fee of 4 percent, and the broker will take a commission of 2 percent. Plus, you got to pay for the processing of various financing and admin overheads. In off-plan, you got to secure the property value of 50 percent.
The developers of the properties are planning to put a nice plan on post-handover or handover, which will be equal to an amount of 75 to 80 percent counted against the purchase price. That’s way the new off-plan projects in Dubai is getting attractive, as the appreciation of capital happens at the time of handover. The DLD has noticed that this has increased the handing over of the properties and projects that are off-plan. In the last 18 months, which has ended on the July, DLD recorded that from 63,903 an investment of Dh86 billion was made.
The market is attractive
If you consider, London, New York or Hong Kong, the market in Dubai is cheaper. In other places where you can buy per sq. Foot at a rate of Dh3,670, in Dubai you can buy it at a rate of Dh1,000. In some demanding places, you can easily rent out any studio house, and you can also sell them easily.