- by Tymour Fisher, General Manager – UAE for Nomad Homes
Homeownership is a staple step in most people’s lives in their 30’s. It is one of the most important personal financial decisions that anyone makes and believe it or not, it’s usually less expensive to own a home than it is to rent one. A daunting yet essential step to boost your long-term financial outlook, if one of your goals for 2022 is buying a house, is research. This could be the place where you and your family create memories to last lifetimes so being conscientious won’t hurt anyone.
Let’s look at the global market.
2021 was a banner year for the housing market, which had its strongest showing in 15 years. Prices went through the roof in the third quarter, nearly 20% compared to the same period in 2020 according to the Federal Housing Finance Agency. Home prices are widely forecasted to continue to rise this year, but not at the jaw-dropping rate of 2021.
People have more disposable income today and since the pandemic drove employees to work remotely or from home, the flexibility means that they can live somewhere that isn’t near their office. The global market suggests that it is a good time to buy but it’s also competitive.
Now, let’s look at the UAE market.
The proverbial halfway point between the east and west, particularly Dubai, is a hub of global business and trade. Real estate plays a key role in the UAE economy and has been attracting investors around the world for years. 2021 was record-breaking for the UAE, especially Dubai’s rental market which showcased a strong recovery due to a comprehensive vaccination program and the opening of international borders.
The local property market has entered a new chapter this year. As it recovers, bigger homes with outdoor facilities are gaining popularity owing to the pandemic-induced flexible working conditions. The government’s initiatives such as long-term residence, retirement, and freelance visas, have welcomed and encouraged people to stay in the country.
A recent Knight Frank study revealed that in 2021, residential property prices in Dubai rose 21% to Dh1,235 per square foot in October from Dh1,021 per square foot in January. Palm Jumeirah, Arabian Ranches, JBR, The Lakes, and Emirates Hills are among those areas recommended by analysts in 2022 for investment as they recorded double-digit growth. Popular locations for apartments include Port De La Mer, Emaar Beachfront, as well as Dubai Creek.
The Dubai Land Department registered that the sector brought in Dh13.12 billion in investments over 5,352 deals in October, the best in 8 years. Of these, villas were preferred among buyers.
As the market works its way around the new normal, a report released by ValuStrat suggests that rents for residential and commercial properties would continue to rise in 2022 but at a slower pace.
Ask yourself these questions when considering homeownership.
After researching it’s time to evaluate your readiness to buy a home. The answers to these will give you a clearer picture of whether it’s the right time for you to buy a home, your approximate budget and where to look.
- Do I have stable, long-term employment?
- Do I have a handle on my debt?
- Do I have decent savings?
- Am I ready to settle down?
- Is the market sentiment in my favour?
- What are my other large expenses in the future?
Why buy in Dubai?
Buying a property in the UAE especially in Dubai has always been the rage, and it’s never been easier than right now. Finalize your budget, do your research on neighbourhoods and other facilities as well as the fees for buying property in Dubai. Buyers are spoilt for choice with the variety of options available across different budgets, the city’s state-of-the-art infrastructure, diversified and expanding economy, lack of property tax and high rental yields.
Understandably, this can be confusing and overwhelming to any potential home buyer. It’s comforting to have trustworthy help in the process as buyers usually need to fend for themselves. Utilizing a tool that is tailored to help buyers, like Nomad Homes is one of the best ways to approach home-buying. The platform simplifies home-buying by providing a one-stop-shop in your journey where you can search, transact and finance your dream property. It matches you to your dream house that lines up with your budget, tastes and preferences. And the best part is, you don’t have to go anywhere else to sort out the finances as they work with a trusted mortgage partner!
When it comes to a decision of this size, it’s essential to think twice, review your goals and finances, keep an eye on the market and be prepared all while having a trusty partner to bring you home.