Top 3 Locations to Buy a House in Dubai You Need to Check Out!

buying agent real estate

Buying a house in Dubai may be one of the best investment decisions of your life. People from all around the world move here, which is why 85% of Dubai’s population is made up of foreigners and expats. Also, thanks to the city’s booming real estate market,  property prices are low, while rent remains high. That means if you are planning to live here, buying a house makes more sense than renting. On the other hand, you can also buy a house through one of the Dubai top real estate companies and use it to generate rental income.

No matter what your goals are, if you are planning to buy a house, make sure to contact a reliable agency real estate Dubai to find a property in one of the nice neighborhoods. If you are making a list of the ideal locations, here are a few top choices that you should consider:

Downtown Dubai

If you find yourself standing in front of Burj Khalifa, the tallest tower in the world, know that you have arrived at Downtown Dubai. As the Dubai top real estate companies would tell you, Downtown is one of the most sought after locations to buy a property in the city. You will find the best and most lavish properties here. Famous for its upscale communities and high-rise buildings, Downtown also possesses various other well-known attractions such as the world’s largest shopping mall and the world’s tallest performing fountain. Since it is situated right next to the Sheikh Zayed Road, Downtown is considered as the center of the city.

Types of properties you will find here and their prices

Ask any agency real estate Dubai, and they will tell you that Downtown is all about high-end and luxurious apartment towers. There is always some exciting new developments taking place here, and there is no dearth of residential apartments in the area. If having a scenic view is important to you, make sure there are no future developments planned around your property to block your view. Property prices tend to be high in Downtown Dubai, and they might even be the highest in the entire city. A one-bedroom apartment here might cost around AED 1,100,000 or USD 381,139.

Popular projects in Downtown Dubai

According to the Dubai top real estate companies, the most popular projects in this area are:

  • Burj Khalifa
  • Burj Vista
  • The Lofts
  • Act One
  • Downtown Views
  • The Residences

Jumeirah Village Circle

If you have always wanted to live in a modern village setting, most agency real estate Dubai will recommend Jumeirah Village Circle. Situated far away from the hustle and bustle of the city, this will be the ideal location for you if all you want is a peaceful life. Jumeirah Village Circle is famous for its lavish townhouses and villas. There are around 3,100, townhouses and 2,800 spacious villas here with tons of green spaces separating each block. You will also find all the necessary amenities here such as community centers, sports fields, schools, and parks. Being only 25 minutes away from the Dubai International Airport, Jumeirah Village Circle is also a convenient location.

Types of properties you will find here and their prices

At Jumeirah Village Circle, you won’t find many high-rise towers or buildings. Dubai top real estate companies might show you apartment projects such as Belgravia Heights and Belgravia III, which are no more than 4 to 5 floors high. However, some high rise building projects are currently taking place in the area if you are interested in them. You can also find four-bedroom villas that have three terraces and a spacious garage that can fit two cars. Such a villa might cost you AED 2 million or around USD 600,000.

Popular projects in Jumeirah Village Circle

Some exciting real estate projects in the area include:

Jumeirah Lake Towers

As any agency real estate Dubai will tell you, this location has the largest concentration of high-rise towers in the city. Situated right across the Sheikh Zayed Road, Jumeirah Lake Towers is also close to Dubai Marina. There are around 80 mixed-use towers and apartments in the area, and you will also find several hotels. It is a densely populated residential area, which is why you will find plenty of entertainment options and necessary amenities such as hospitals, schools, supermarkets, shopping malls, and restaurants. Ideal for families, Jumeirah Lake Towers attracts a high number of expats. The expat population of Dubai prefers this location because it is so close to the neighboring commercial areas.

Access to transportation is also great here. You will get Dubai metro and roads that connect to Abu Dhabi. On the other hand, if view is important to you and you have always wanted to live near water, you would not need to get a beachfront property. Jumeirah Lake Towers has four artificial lakes surrounding it. The lakes are strategically placed between the residential projects. Also, thanks to the green spaces and big parks, the area looks and feels much less congested and crowded than other parts of the city.

Types of properties you will find here and their prices

This location is known for luxury apartment projects. However, you can also find several different types of apartments such as hotel apartments, serviced apartments, and penthouses. You will also find some exciting off-plan projects here. If you are wondering about the cost, you should know that a one-bedroom apartment might have a price tag of 0.5-1 million AED and penthouses might cost 4-6 million AED.

Popular projects in Jumeirah Lake Towers

Some of the most popular projects in this area include:

  • IGO 101 Tower
  • Banyan Tree Residences
  • Seven City
  • MAG 214
  • Dubai Arch
  • Bonnington Tower

If you want one of the Dubai top real estate companies to help you out in your search for the perfect house, make sure you get in touch with RiseUp. Being one of the leading real estate companies in Dubai, RiseUp can offer you the guidance you need!

THE MATH BEHIND A HOME INVESTMENT in 2021

I often get asked about HOME INVESTMENT, “I’m earning Dh20,000 per month – can I buy a property in Dubai in 2021?”

My answer is determined on a stream of questions which is what I’m going to elaborate on. There are more factors that come into play when determining if we are able to buy a property than just our income. All these aspects are different for every individual.

For argument’s sake, let’s consider a purchase through bank financing, as most buyers are looking for a mortgage when buying ready properties. As a starting point, an income of Dh20,000 per month certainly crosses the minimum threshold to obtain a mortgage.

Generally, your monthly salary needs to be 4x higher than your monthly mortgage payments, which can further vary based on current liabilities. There are a few requirements the bank will ask to get started on the pre-approval.

● Salary Certificate

● Six-Month Salary Slip

● Six-month Bank Statement

● Loan Application Document

● ID Copies

Depending on the bank, the pre-approval validity can vary between 30-60 days and the cost from Dh500-Dh1,000. Once the pre-approval is in hand, make a point to understand how much the bank will lend and how much down payment to have in hand.

This pre-approval helps get immediate offers on distress assets that might be in the market for a short period of time. With a pre-approval, the seller gains more confidence in your ability to obtain the required finance to buy a property.

FIXING THE RATE… OR NOT

Since bank lending can go up to a maximum of 80 per cent, the buyer should have in hand 27.5 per cent of the property value to cover the down payment and all transfer-related expenses. At this point, decide if you want a fixed rate or a variable.

If the pre-approvals are sorted and based on the mortgage type, let’s start onthe fun part – property hunting.

HOMING IN

Based on a salary of Dh20,000 and not having any other liabilities, the bank will lend about 40x the monthly salary, which means Dh800,000. Since that is the maximum lending amount, let’s consider it to be 80 per cent of our target property value, therein allowing us to buy a property of up to Dh1 million.

The down payment along with closing costs would be about 27.5 per cent, which would equate to Dh275,000 out of which Dh200,000 would go towards down payment and Dh75,000 on closing expenses related to Land Department fees, the no-objection certificate, agency costs, mortgage registration, valuation and processing.

Let’s calculate what will the monthly repayments will be. Let’s consider we opted for the fixed rate mortgage for 20 years and at an interest rate of 3.5 per cent. Based on our borrowing of Dh800,000, we are looking at Dh4,640 a month, which is principal plus interest payment.

ADDING UP THE COSTS

On a two-bedroom apartment in Dubai for Dh1 million, which is about 1,200 square foot with an average service charge of Dh 12 per square foot. That means a monthly maintenance cost equates to Dh 1,200.

Factoring in mortgage repayments as well, we are looking at expenses of Dh 5,840 per month. If our purpose for buying the property is an investment for rental yield, then let’s see how much income we are able to generate. Let’s consider our property to be rented out at Dh 80,000, which equates to Dh 6,600 per month.

After deducting monthly outgoing in terms of mortgage payments and service charges, we are still looking at a positive income of Dh760 per month. Upon completion of mortgage payments over the next 20 years, we are now sitting on a fully-paid-up property generating rental yield with only the monthly service charges as outgoing.

If the purpose of purchase is to shift from being a tenant to live in our own property, then instead of paying a rent of Dh6,600 per month, we are now spending Dh5,840 per month on bank repayments and maintenance fee.

It’s a winning situation – whatever the purpose may be.

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Source: Gulf News – Written By Aakarshan Kathuria

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