Should you buy a house in UAE?

Is now the time to buy property in the UAE?

Rents are going up and tenants are being forced to negotiate hard to stay in their homes another year. So should you buy a house in UAE  instead? We find out.

Dubai Properties For Sale

While laws are in place to prevent landlords raising rents by extortionate amounts – landlords often get round the regulations by telling tenants they plan to move in or to sell the property. When the tenant moves out, they change their mind and put the property back on the market.

The practice, coupled with the UAE’s economic resurgence following the global economic crisis, has sent rents spiralling upwards in recent months.

According to a survey from classifieds website Dubizzle, Dubai has experienced price increases of up to 61 per cent in some areas in the last year. 

The situation in Dubai, however, leaves tenants in a quandary as to whether to switch from renting to buying a house to ensure they have a fixed amount to pay for their housing, in turn, avoiding rocketing rental rates. However, to buy a house in UAE offers no guarantees either.

The Dubai property market has rebounded from the credit crunch when prices fell by more than half on The Palm – the emirate’s benchmark for the housing market.

Property agents Asteco, recently revealed Dubai apartment prices rose 27% in the year to March with average villa prices up 24%.