Are the days of speculating on the Dubai property market really over?

The Dubai property market is still in boom, dragging on longer than any market expert could have or would have expected, but does this prolonged boom means that speculation is no longer possible?  Many property buyers made a lot of money out of Dubai property, particularly the first buyers who took a risk and bought off-plan.  Here we are five years after all this started, prices have rocketed to amongst the most expensive in the world, and there are countless finished or finishing projects.  What are property investors on the Dubai real estate market to do now?

Buying off-plan

This is how previous buyers speculated; can you still do the same today?  You just might be able to buy properties off a developer for cheaper than you would find on the secondary market, the only problem is that freehold projects are no longer being released on a weekly basis, with so many under construction already.  This is not to say that there will be no new projects anymore, far from it, just that the number has dropped now that the freehold market is in boom.  The best thing for investors to do is keep an eye out for new property releases, get down there and buy.  You just might be able to pick up a relative bargain!

Are today’s Dubai property buyers looking to make a profit?

Not all property buying is done with the intention to sell.  In fact, due to the high costs of renting accommodation in Dubai, most Dubai property buyers are investing in a home to live in.  In this case, property buyers are looking less for a profit to make, and more for a property that is good quality, in a decent location and great value for money.  Meeting these criteria is a bigger issue than how much you can sell a property for above what you paid.  Priorities change!

The uncertain future of Dubai property

While it could actually be a wise move to buy now, with the potential to make a profit, the Dubai property market is so new and unpredictable that even experienced market analysts are not sure what will happen.  All signs point to a market slowing down, meaning you shouldn’t buy a property in Dubai for profit motives, but getting a great home before it’s gone.  Over the next few months, speculators will have to watch the prices of Dubai property, and assess if it is a good investment.

For more information on properties in Dubai, and buying your own Dubai property, please contact us.

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