When buying or selling a property in Dubai, people often factor in the current property value. Some factors influence the prices of property on either side of the price range, some of which include the health of the Dubai real estate market, location, and condition of the property.
According to stats, property value tends to increase in a stable economy with a low unemployment rate and interest; and vice versa is true. Because prices don’t remain static for long, it is advisable to review property prices, at least annually.
As you may know, the Dubai real estate sector is one of the fastest rising industries in the Emirate. The Dubai property market arouses the attention of both local and international investors.
So, what are the key factors that affect the price of a property in Dubai? Find out:
1. The State of The Economy
Dubai’s economy is one of the most stable in the world, and if you are looking to invest in the property market in the city, understand the property prices will be higher. This is because, in a good economy, people earn decent salaries and income, meaning they are financially stable. Hence, they can buy properties.
When you are unemployed, you have little to no purchasing power. You are also uncertain about the future. Because of this, buying properties becomes a tertiary need. This results in a reduction in demand for properties, which in turn lowers property value. Remember, a high demand for property triggers a price increase.
3. Location Matters
The home you are currently living in may be ideal for you because it is close to your workplace, school, hospital, or parents ‘house. However, when determining the value of a property in Dubai, appraisers consider the following primary indicators:
• Employment opportunities.
• The quality of local schools.
• Proximity to essentials such as healthcare facilities, recreational centers, and shopping centers.
These factors among others are the reason some areas are costlier than others, yet they are only a few miles away. Moreover, proximity to public transport, highways, and utility lines also influence the price of a property. When it comes to assessing the price of a property in Dubai, location is more crucial than the condition and size.
4. Condition and Age
Generally, new homes are costly. The fact that important parts of the home such as the roof, electrical, plumbing, and appliances are still new and rarely would break down, can make savings for the buyer.
For instance, if a roof has a 15-year warranty, that is money that the owner will save for more than a decade, as opposed to an older house that may require roof replacement in a couple of years.
A lot of property buyers in Dubai will pay the highest amount for a move-in ready home- the reason must buyers want an inspection contingency in the agreement. They will negotiate repairs to not cater to major expenses after the sale.
5. Updates and Upgrades
Updates, upgrades, and renovations can increase the value of a property in Dubai considerably, especially older projects with obsolete features. Bathroom and kitchen upgrades can have a significant effect on a property’s value.
You may also opt to increase the number of bedrooms. The outer appearance or the “curb appeal” is also a paramount factor in influencing Dubai property value.
It is critical to know the value of a property before selling or buying. There are many other factors other than the ones we have discussed above. That is why it is equally imperative to work with a real estate broker, especially when it comes to Dubai real estate. Find an agent with experience in valuation and appraisal in your area of interest.