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Sun, Dec 22, 2024 | Jumada al-Aakhirah 21, 1446 | DXB
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Is it a good time to buy a two-bedroom apartment in Dubai, or should I rent it?
As property prices are expected to continue rising, setting the stage for an increase in mortgage interest rates in 2024, now is a great time to buy and take advantage of favourable market conditions
- By
- Liam Dawett/Realty Bytes
A general view of Business Bay area. If you are looking for major capital appreciation, popular buildings in Downtown, the Palm, Marina and even Dubai Hills are great areas to invest at the moment. — Reuters
The decision to buy or rent a two-bedroom apartment in Dubai depends on several factors, including your financial situation, long-term plans, and lifestyle. If you plan to live in Dubai for an extended period and have the financial stability to support a mortgage, buying a two-bedroom apartment is a great investment.
With Dubai's positive market trend, the emirate is a paradise for those wanting to invest in real estate. In addition, as property prices are expected to continue rising, setting the stage for an increase in mortgage interest rates in 2024, now is a great time to buy and take advantage of favourable market conditions.
Finally, Dubai offers exceptional value compared to other major capital cities and allows tax-free rental yield. However, renting is a great option if you are not ready to make a long-term commitment or prefer flexibility.
Currently, the real estate market in Dubai is relatively stable, with a moderate supply and demand balance, which means that rental prices may not be increasing significantly, as witnessed in 2022. Ultimately, it's important to weigh each option's benefits and drawbacks and make the right decision for you.
Is it cheaper renting from a landlord or via a property management company?
Costs are relative to the area you are living in. If you rent from a management company, you must understand the services that come with renting with them. A lot of the time, there is more support regarding issues with the property that will make your life easier than perhaps with a landlord that may be out of the country and struggling to connect with various companies to solve the problem.
What are the best areas to buy and rent?
In terms of areas to buy, it all comes down to personal perspective and budget. If you are looking for major capital appreciation, popular buildings in Downtown, the Palm, Marina and even Dubai Hills are great areas to invest at the moment, as they are a lot more established with less or next to no more plots left to build. On the other hand, with its exciting projects and affordable prices, Jumeirah Village Circle offers a more budget-friendly alternative. Additional areas at competitive prices include Town Square, Sports City and Dubai Silicon Oasis.
Do I save by renting directly from the landlord? What are the pros and cons?
Renting directly from a landlord can offer potential benefits and drawbacks. Some advantages include no broker fee, a direct relationship with the property owner, and more control over maintenance and repair issues. However, the individual will be responsible for coordinating and negotiating with the landlord, therefore spending physical and emotional time.
In addition, if a broker is involved with the deal, it is usually a smooth process regarding paperwork. They can also support you with questions regarding Ejari, delayed Emirates IDs, etc.
Additionally, renting directly from a landlord may not offer the same level of protection as renting through a property management company. For example, a property management company may have established policies and procedures for rent collection and property maintenance, as well as a network of trusted contractors and vendors.
On the other hand, renting directly from a landlord may result in a more informal agreement with less structure, leaving you to manage these aspects independently.
In conclusion, the choice between renting directly from a landlord or through a property management company will depend on your individual needs and preferences. It's important to weigh the advantages and disadvantages of each option and choose the one that's right for you.
Liam Dawett is Business Bay Branch Leasing Manager at Betterhomes. Views expressed are his own and do not reflect the newspaper's policy.
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