One of the problems home buyers face when looking for an affordable home is that richer investors beat them to the opportunities. Property speculation has always been a major problem for Dubai and other cities of the world as it drives up housing prices to unnatural heights.
In turn, this has made buying a home, even in Dubai, out of reach of those families who want a stable environment to live in. It is a problem that is hard to control and with no affordable options available, many families must spend a lot of their income on rental fees.
However, there may be ways around this problem and the following tips may help out.
To understand this crisis, one has to know how to define the term ‘affordability’. This is a relatively new term for the Dubai real estate industry and even the government has a difficult time creating a good definition.
There are many factors at play in this crisis as some neighborhoods may have studios that are not affordable to middle-class or lower-income families but others may have the same studio for half the price.
It is a relative term as affordability depends on where one wants to live. Also, it depends on where they draw the line financially. In many cases, affordability means you are paying less than 9,300 AED per month rent. But if your salary only reaches less than 20,000 AED, then those same apartments are not affordable.
While housing and other expenses in Dubai and the UAE are dropping little by little, that may not help the real estate industry or the government to define what is affordable in this region.
In other words, affordability is subjective and is influenced by too many factors for there to be an objective definition.
This is an up-and-coming neighbourhood that is anchored by an 18-hole championship golf course. It is a very popular area for both investors and normal home buyers.
That popularity is due to its location, the amenities (which include schools, healthcare facilities, and shopping opportunities), as well as being a great location for raising families in a comfortable lifestyle.
This emerging neighbourhood contains excellent villas and apartments that will meet any housing need.
Built along Dubai Creek, this neighbourhood is predicted to become a thriving waterfront neighbourhood. The combination of marine and urban lifestyles is supposed to be its main attraction.
With the Dubai Creek Tower set to become the tallest building in the world, this neighbourhood should attract residents from all over the world. Like other neighbourhoods, Dubai Creek Harbour will have its share of leisure & recreational activities, restaurants, shopping, and more amenities.
Its seamless connection to Downtown Dubai and the Dubai Airport makes it an ideal spot for businessmen and traditional families.
This once-delayed housing project is set to become the next big neighbourhood. The developer Nakaal has decided after 17 years to go ahead with this project and make it bigger than Palm Jumeirah.
While it will have all the amenities that other neighbourhoods have but more of them, this neighbourhood is emerging to be one of the best Dubai has to offer. How affordable its villas and apartments will be is anyone's guess at this time.
The lack of affordable housing in many of Dubai’s neighbourhoods means that you may not get your first choice of neighbourhoods. You should have a second and third choice or change the housing unit type to find a home in this city.
Townhouses and apartments are always the most affordable if they are located in neighbourhoods far from the more desired and popular ones. In some cases, when you go to an alternative to your first choice, you can have the possibility of saving up to 50% on the purchase price.
It may not be the best area in town but it is well worth the savings you get. With lower overall costs, your monthly income may go a bit further.
There are different negotiating strategies for different housing units. Some of these strategies do overlap and here are a few of those key options:
Do not fall in love with the property at first sight-Make sure to do your homework first before making an offer.
Keep your options open- Having second and third choices helps put you in a strong negotiating position.
Don’t make an insultingly low offer- The seller most likely will refuse it and not want to sell to you.
There are some key differences between these two financial options. However, the goal for both in real estate matters is to help you secure the best mortgage possible.
One of the differences though is that the financial planner will focus on your overall financial picture and provide help to meet your financial goals. On the other hand, the mortgage broker will only help you secure a good mortgage loan.
The mortgage lender is the best person to go to when you are buying a home in Dubai. Your financial planning should have been done prior to making the decision to buy a home in this city.
To get the right mortgage help, you should talk with your broker They know the best lenders available.
When you are looking for an affordable home in Dubai, there is hope. Our estate agency has over 10 years of real estate experience in Dubai. Our expert agents know where you can find those elusive affordable homes.
The best thing to do is call our office today and make an appointment with one of our RERA-approved estate agents. Tell them what you are looking for and let them go to work for you.
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