Buying Property During Ramadan

Ramadan is a holy month in the UAE, during which people pray, fast, reflect, donate and help others. Even though in Ramadan everything seems to slow down, as government entities as well as private companies reduce the number of working hours, and the number of real estate transactions decrease, it's an ideal month to think about investments in properties. Property developers, estate agents and banks often announce attractive offers, sales and discounts. Offers are available to both locals and to foreigners looking to move to one of the world's most developed metropolises.

Dubai Real Estate Market Trends During Ramadan

The number of real estate transactions during Ramadan slows down, which can be explained by the fact that Muslims spend time fasting, praying, reading the Quran, taking part in charity work, worshiping Allah and meeting with family members and close ones. But Ramadan isn't only a month for reflection; it is also an ideal time for property investment.

Before the beginning of the holy month the majority of real estate developers launch new projects. However, this year a number of new projects have already been announced during Ramadan, including DAMAC Bay 2 by Cavalli in Dubai Harbour, DG1 Living by DarGlobal and The EDGE by Select Group in Business Bay, as well as SOBHA Reserve by Sobha Realty in Wadi Al Safa 2 Dubailand, which means that Ramadan 2023 might be quite different from the previous years.

In accordance with the statistics from the Dubai Land Department (DLD), in the first week of Ramadan 2023, which lasted from March 23 to March 30, the total number of real estate transactions reached 2,379, including 1,942 residences, 188 villas and townhouses, and 249 land plots. The total amount of transactions were worth AED 5.9B (USD 1.6B). The highest value of transactions was reached on March 27 with AED 882.8M (USD 240.4M) in terms of existing properties and AED 521.8M (USD 142M) for off-plan properties.

In order to compare, during the first week of Ramadan in the previous year, which ended by April 8, 2022, the total number of conducted transactions reached 2,012 including 1,415 apartments and villas with a total value of AED 2.96B (USD 805.9M) and 236 plots with a value of AED 1.07B (USD 291.3M). The growth in numbers in the first week of Ramadan 2023 is an indicator that the Dubai real estate market attracts more homebuyers, interested in purchasing various types of properties.

Note: If you change your mind after your property purchase, you will always be able to rent a property out in Dubai and generate a high stable income. In 2022, the average price of renting an apartment in Dubai went up by 28.8%, whilst renting a villa increased by 26.1%. More information about rental growth can be found here.

Why is Ramadan an Ideal Time for Purchasing Property?

From the beginning of the holy month to the end of Eid Al Fitr celebrations, less people are interested in purchasing real estate units. However, Ramadan is an ideal time for property buying, because there are always local residents and foreigners looking for investment tools or homes to move into.Here are the reasons which explain why purchasing property during the holy month is always a good idea:

1. Less people monitor real estate propositions, which means you can benefit from a quieter market and choose your perfect home on attractive terms, especially if it's an off-plan property, which can be resold after its completion at much higher prices.
2. As the demand for real estate units will be a bit lower, you will get more opportunities and more time for visiting apartments, villas and townhouses, as well as have more time for serious thinking and discussing each unit, along with choosing the right property without ferocious competition.
3. Developers come with special payment plans and coverage of DLD fees, from 2% to 4%. Price reductions and unique gifts such as furniture are also possible.
4. Even though some real estate agents go on holidays to spend the holy month with their families, a great number of brokers continue working and are ready to provide their services. Discounts from real estate agents are also possible during the holy month.
5. Banks offer favourable credit rates, deferment of the first installment and other special deals. Moreover, during Ramadan you will be able to obtain a mortgage on more attractive terms.

Note: The world-renowned developer, DAMAC Properties, offers discounts of up to AED 500K (USD 136K) on its ready-to-move-in properties in DAMAC Hills and DAMAC Hills 2. To learn more details, please get in touch with our Metropolitan Premium Properties brokers.

Buying Properties in Dubai with Metropolitan Premium Properties

If you are interested in investing in the Dubai real estate market to get maximum profit, or purchase a residence for living, our Metropolitan Premium Properties brokers are ready to help you. Our brokers will choose the best properties for you, corresponding to your needs and budget. In case you wish to move to Dubai here and now, we will suggest ready-to-move-in properties in the most popular and desirable areas of the emirate at attractive prices. With the help of Metropolitan Premium Properties, you will be able to get maximum profit from the Ramadan offers by Emirati developers, and purchase residences at lower prices with attractive payment plans.

If you need to obtain a mortgage, our professionals will assist you in getting one from one of the local banks. By using the services of our Metropolitan Premium Properties real estate agents, you won't need to worry about preparing the documents and possible issues regarding the process of property purchase, as we will lead you from the search of a residence right through until the end of the transaction.