Property prices in Dubai can shift either way. So, it is vital that you consider the factors that have a role to play in determining property value in Dubai. But when it comes to determining the best ROI property Dubai there are a few factors that increase or decrease the property value.
Are the factors segregated into two categories?
Numerous reasons emerge to the fore why property prices continue to increase. Even a fall in property value may emerge due to various reasons. These factors may be split into a couple of sections. The first would be directly associated with the property like location, general condition along with the status of the real estate market. The second would be that the property owners do not exercise control over them directly like Covid 19 or any form of government development.
So before you are investing in the real estate market of Dubai, you need to have an idea of how it works. Let us understand the determining factors when it comes to the real estate market of Dubai.
Economic growth
The most important point that determines the property in Dubai is economic growth. A country that has a stable government is bound to have a higher valuation on the property front. In the overall context, the economic situation in Dubai is stable and for this reason, the properties of Dubai are of high value.
In developed economies usually, the value of the properties turns out to be expensive as people are making good incomes and being financially stable as well. People who have decent salaries can pay the high rates along with the fees.
Unemployment
The countries that have high unemployment rates would be having low property values. Numerous reasons are there to support the cause. Falling unemployment rates create uncertainty as people do not have the purchasing power to choose a new property or opt for one. Lack of interest, low purchasing power and predictability are bound to lead to a fall in property prices.
When we talk about Dubai it has the lowest rate of unemployment. Both the locals and the expats are able to make a decent amount of money when you are in Dubai. For this reason, people decide to buy to let property in Dubai when the prices are high.
A weakening US dollar
The dollar rates of the US are one of the important factors that determine property prices. It has come to the notice that whenever the price of the US dollar rises or falls it has an impact on the property market of Dubai. The dollar rate has reported a drastic decrease in the last few years which has had an impact on the real estate market of Dubai. The same logic is applicable vice-versa as there is going to be an increase in the value of the property market in Dubai.
Location
Another key contributing factor is the location. Dubai is a culturally diverse country and you are likely to come across people from different wakes of life in this part of the world. Even you are likely to come across different types of homes and you can choose one based on your needs.
The prime factor that influences the price of a home is the location. Might be the current location where you are residing could be the best option to take home since it is near to your office. The school of your kids could be a few kilometres away. When the question of property valuation arises there are numerous factors that you need to consider. If you are curious to know about these factors it is going to enhance the value of your home.
The factors that have a role to play in enhancing your house value
- Employment opportunities
- The quality of local schools
- Proximity to the places of interest
Based on the above set of factors your property could have more value in comparison to the others. Apart from that public transport, airports are some of the other factors that have a role to play in influencing property prices. When you are purchasing a property in Dubai you may find all of them at a reasonable price. Then you can consider yourself to be the luckiest person in this world.
Supply and demand
Supply and demand have an important role to play in determining property prices in Dubai. Just like in any other industry if the demand increases the price will increase. When it comes to the Dubai property market if most of the buyers are interested to purchase a home then the prices of the homes will rise. Even there are going to be more opportunities for real estate agents to receive commissions on their sales. On the other side of the coin if there are no buyers then the property value would fall.
Age and condition
This is a strategy that is not only applicable to the Dubai property market but to the entire global property. Coming to the newly constructed properties their value would be on the higher side. The reason being in a new house and everything is new from the roof to the plumbing stuff. They are going to have a longer life span and would take years to break down.
Funds availability
The overall Dubai market may turn out to be expensive. So most buyers purchase the property where they borrow money from the leading financial institutions of the world. The onus is on these agencies as they should develop viable policies that would make it easier for a buyer to be purchasing a property in Dubai. If there are not flexible with their policies then the number of people who will be borrowing would be less. The people need to have sufficient amount of money when it comes to purchasing property. Hence the property owners would have to decrease the value of prices to obtain the property as well.