Sixteen per cent of Dubai residents who responded to a Property Finder sentiment survey have bought a home in the last six months and another 39 per cent are ready to buy and willing to do so before the end of 2018.

Half of those polled said they purchased in the last six months because they felt it was financially smarter than continuing to rent. Additionally, the Property Finder research team found that one third of respondents believe now is the right time to buy.

“It was very apparent that the majority of those surveyed want to purchase a property in Dubai and the most common reasons were they felt it was a better financial decision to buy rather than rent and these potential buyers plan on staying in Dubai for more than three years,” said Lynnette Abad, director of Research & Data at Property Finder Group.

“We also noted that two of the biggest pain points with these potential buyers is not enough affordable stock which fits their income and the difficulty to save for the down payment.”
 
Over the past three to four years, sales prices have fallen faster than rents, making houses for would-be buyers not only more affordable, but a good investment option as opposed to one continuing to rent. Having more owner-occupiers is also beneficial, as it provides security for the market by decreasing the likelihood of more frequent sell-offs.

Additionally, prices are better maintained as investors are more prone to offer bigger discounts when they want to sell, rather than families who’ve made a lifetime investment in a nest. Certainly, investors have their place in Dubai as yields are still some of the highest in the world, but the city would benefit from a more balanced ecosystem.
 
Looking past 2020, continued population growth of three per cent per year and the introduction of more quality and affordable residential projects from a number of developers are additional factors that will push more long-term tenants to consider investing in their adopted city. – TradeArabia News Service