Should Tenants Consider Buying - Newsletter Sept 2015
Should Tenants Consider Buying a Property in Dubai?
The region biggest event fully dedicated to the real estate sector, Cityscape Global, will be held from 8th to 10th Sept at Dubai World Trade Center. This year the organizer expects more than 300 exhibitors to take part in the fair, among them local and international developers, brokerage firms and industry-related professionals. We warmly invite you to visit our stand no. 3D01, located at the entrance of Hall 3.
As the oil results decline, the real estate’s activity weakens. The UAE economic growth forecast published by the International Monetary Fund (IMF) is 3%, which is down from the 4.6% of 2014. To boost the economy the UAE Government issued a new law this month aimed at encouraging partnerships between the public and private sectors.
The latest report published by the IMF highlights that price-to-rent ratios have declined in the UAE since mid-2014; with current ratios below 15 points there is a clear advantage in buying rather than renting. Also, the IMF states a six per cent year-on-year increase in the gross rental yields was recorded in March 2015.
With a budget of 41bn AED this year, of which 13% (5.3bn AED) has been allocated to infrastructure work, Dubai Government works on different master improvements that include twelve marine stations at the Dubai Water Canal and Business Bay Canal as well as Dubai International Airport expansion and on the master plan of Al Maktoum International Airport. The next achievement of the RTA initiative, which supports mobility, is the availability of a bike rental service along the Dubai Tram line. No completion date has been announced yet.
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