Dubai’s real estate market needs sustainable pricing for middle-income families

Dubai’s real estate market needs sustainable pricing for middle-income families

The allure of Dubai’s real estate market has always been undeniable. The glitzy skyline, luxurious amenities, and cosmopolitan lifestyle make it a prime destination for property investment. However, for middle-income families, this dream often seems out of reach due to soaring property prices. In this blog post, we will delve into the challenges faced by middle-income buyers in Dubai’s real estate market and explore the innovative solution offered by Dugasta Properties, aiming to make home ownership a reality for a broader segment of the population.

The Challenge of Rising Property Prices

As the demand for properties in Dubai continues to rise, developers often increase profit margins, causing property prices to surge. Studio apartments that once were priced at Dh800,000 to Dh1 million now demand considerably higher figures. This upward trend in property prices raises concerns about the sustainability of the real estate market in Dubai. Middle-income families are particularly affected by this trend, as the dream of owning a home becomes increasingly elusive.

Calculating Returns on Investment

To put the situation into perspective, let’s consider the returns on investment for a studio apartment. With a purchase price of Dh800,000, the rental income typically hovers around Dh40,000 annually. However, when accounting for service charges, the return on investment can drop below 4 percent. This poses a significant challenge for investors looking for viable opportunities.

Dugasta Properties’ Innovative Solution

Dugasta Properties Development, a prominent Dubai-based property developer, has recognized the need for affordable housing in the city. They are introducing a game-changing solution that includes:

  1. Affordable Prices: Dugasta Properties is offering studio apartments starting at just Dh400,000, making home ownership more accessible to middle-income families.
  2. 8% Guaranteed Returns: The developer is providing an 8 percent annual guaranteed return on investment for the first five years, subject to specific terms and conditions. This initiative aims to rebalance the real estate market and attract buyers who were previously priced out.
  3. Buy-Back Option: After the initial five-year period, Dugasta Properties offers a buy-back option based on certain terms and conditions. This means buyers could potentially recoup 40 percent of their initial investment.

A Sustainable Approach to Real Estate

Dugasta Properties’ approach aligns with the concept of sustainability, not just in terms of environmental responsibility but also economic sustainability. By pricing their properties affordably, they aim to create a stable and long-lasting real estate market that can weather market fluctuations.

Dubai’s Booming Real Estate Sector

Dubai’s real estate sector has experienced tremendous growth, with a significant increase in property transactions and values. In the first half of 2023, the number of transactions reached 76,119, with a total value of Dh283 billion. This growth is reflected in the rising average property prices, which have increased by nearly 17 percent in the year through June 2023.

Looking Towards a Sustainable Future

As Dubai prepares to host COP28 and emphasizes sustainability, economic sustainability in the real estate market becomes crucial. Dugasta Properties’ innovative approach offers a promising path forward. By making homes affordable and ensuring guaranteed returns, they not only attract new buyers but also contribute to the overall stability of the real estate market.

In conclusion, Dubai’s real estate market is evolving, and developers like Dugasta Properties are taking bold steps to address the needs of middle-income families. By offering affordable housing options and innovative financial incentives, they are paving the way for a more inclusive and sustainable future in Dubai’s real estate sector. Middle-income families no longer have to feel priced out of their dreams; they can now envision a brighter future in Dubai’s thriving real estate landscape.

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