Buying Property in Dubai is an Exciting Proposition

‘Buying property in Dubai’ has been one of the frequently discussed topics,especially among groups actively analyzing various regions for overseas property investments. In fact,on various occasions,the discussions have been transformed into heated debates,with the participants quite adamant on establishing their opinion on the subject. Well,if you have been a witness or involved in such events and come away feeling confused about whether buying property in Dubai is for you,then this article could assist you in making up your mind.

Buying property in Dubai,as an overseas investment avenue,is quite an interesting proposition.
The property market has grown at a phenomenal pace thus pumping up the rents and prices,and demand continues to grow. Investors from all over the world are closely analyzing the region to look for the next property to invest in.

Property investments in Dubai

In an attempt to understand the supply movement in Dubai’s property market,let’s begin by identifying the plus factors offered by the region,for those contemplating investment.

Dubai is a rich nation and there isn’t any income or personal tax to be concerned about (hurrah!). The government has invested heavily in the infrastructure,and the Dubai landscape resembles an American city due to all the glass and concrete building. The tallest skyscrapers and the largest projects,like the Burj Dubai,are currently the identification marks of the city. This present scenario,more or less,is the realized output of Sheikh Mohammed Rashid Al-Maktoum (Dubai’s ruler). Dubai has four ports; the largest port is at Jebel Ali,the world’s largest artificial harbor created over 20 years ago,and is one of the world’s busiest ports for container shipping.

When buying property in Dubai,the property market is quite tempting in terms of prices and prospects. This includes the construction market,which is moving at a commendable pace to quickly create grander structures than the already applauded; and they easily qualify on the quality parameter. In fact Dubai’s Emaar Properties is,by now,working towards the construction of even grander structures,to further lure the interested. Foreign ownership of property is a recently introduced concept,which highlights the positive political framework in this direction. Tax advantages are explicit,which further strengthen the reason for buying property in Dubai.

To encapsulate the scenario,it can be stated that the Dubai property market’s expansion drive is comparatively young,but owing to the rapid pace of developments the market has matured a little earlier than expected,thus perhaps raising concerns. However,indications of further stabilization are apparent.

Despite the boom,buying property in Dubai is still cheaper than various other commercial cities of interest. For comparable constructions in Dubai and London,the difference could be 4 times the base price. The tax advantages are also superior in contrast to various other overseas property investment options. According to recent research,the British own more property in Dubai than any other foreign nationality. One of the reasons Brits are heading for Dubai is because they can earn more income. A ‘Wealth Ranking Survey’ by NatWest International showed that expats can earn up to 40% more on average than their peers in Britain.

Dubai is expected to grow as a tourist attraction,as well as being the preferred business destination,while other countries present negligible scope in that direction. Dubai regions / projects,which are worth checking into include: Dubailand; The Burj Dubai Complex; Dubai Marina; Dubai Waterfront; Business Bay,etc. In conclusion,if you’re looking for an investment,buying a property in Dubai could be exactly what you need.

Buying A Property In Dubai

There are very few with even a passing interest in property abroad who won’t have read something about Dubai and its unique property market by now. It has only been open to foreign investors since 2003 and freehold ownership is not due to become an option until later this year. Dubai,which is the second largest of seven Emirates forming the United Arab Emirates (UAE),has a population of 1.67 million,80% of which are ex-patriates. As Arab states go,and even by UAE standards,Dubai is probably as liberal,stable and Westernised as they come. There are no problems for women whatever they choose to wear,religious tolerance is the order of the day and drinking of alcohol is not prohibited,although public drunkenness is seriously frowned upon so it may not be the ideal venue for your upcoming stag party.

Judging Dubai’s fledgling property market by the standards of anything else on the planet is a little pointless,it simply isn’t like anywhere else on earth. Parallels may occasionally be drawn with Las Vegas,but the most similarity you’ll likely find is the planned nature of the cities. Dubai is certainly a very contrived city if you look at it in that way,don’t expect to find too much organic and disorganised property growth here,everything is being planned to a tee. It also has a penchant for taking the best and most celebrated design and architectural features of other countries and cultures to use in new and unusual ways. It is possibly not much of an attraction for architectural purists but still quite intriguing as a design ethos.

In terms of financial attractions for both developers and investors they don’t get any stronger than Dubai,tax-free status is as good as it gets. As Ray Norton of Larionovo says,”the tax situation here tends to be a fairly short conversation,there are zero taxes on pretty much everything.” It is easy to gloss over the effect that this has on attracting incoming economic activity until you take a quick look around Europe and see the effect that dropping corporate tax rates to 15% has for a country. This will give you some hint of the attraction to Dubai. Kofi Annan recently went so far as to label Dubai ‘an economic miracle’ so the Emirate obviously has friends in high places. It is essentially a tax-free zone in its entirety and this fact has not been lost on the corporations of the world. Of course an Irish investor will still be taxed in Ireland on all their overseas income,but you can’t blame Dubai for this.

One of the main drags on this market to date has been the inherent difficulty in arranging mortgage finance. This is rapidly changing with the impending introduction of freehold laws and the chances are that freer availability of mortgaging will continue to drive price inflation in the region for the foreseeable future as will the nature of some of the more mind-boggling schemes being presented to investors.

One of the things which most worries many people about the entirety of the United Arab Emirates is not the fact that there is any intrinsic political instability,there has been no history of this in the region since transfer of power from the British in 1971,or even before that time. It is really more a question of some of the entities surrounding the Emirates not having a similar reputation. It can be difficult to convince those unfamiliar with the area how little this has affected it up to this point. There is obviously nothing to say that some undesirable won’t decide to focus the region because of its liberal Westernised policies or rich oil reserves,based mostly in the neighbouring Emirate of Abu Dhabi,but advocates claim you may very well be in more danger located anywhere near Shannon and thus tend to ignore this possibility.

Another argument against investment here is the lack of democratic political structures. The Maktoum family have been very benevolent rulers but not everyone in Dubai agrees with their vision for the future. The argument for a focussed single ruling entity can be very visibly seen in the ease and speed with which huge new projects can be vetted and actioned,this simply doesn’t happen in the democratic world. The flip side of this coin becomes more obvious if you don’t agree with the actions taken by this unchallengeable authority. Not everyone is comfortable with such irrevocable powers but many country’s experiences with democracy and its ability to cater for the common good haven’t exactly been riveting so I guess you could argue either way.

Spiralling rents for homes in Dubai is obviously seen as a boon for property investors but it should not yet be viewed as the norm for the market as very little of the planned property in the Emirate has actually been built yet. As it stands,low-paid workers are already priced out of the local rental market,where rates increased by around 40% in 2005. The rate increases were so large that the governing Maktoum family intervened to cap rising rental rates. This highlights something which may become more of a problem with time. While Dubai is witnessing a construction boom,the trend is almost completely toward luxury apartments and villas,leaving little accommodation for unskilled and semi-skilled workers,mainly from India,Pakistan and the Philippines. Even if the Emirate succeeds in its attempts to make this the Mecca for all tourist related traffic in this region it will be necessary to accommodate such workers but there don’t currently seem to be any incentives to supply product for this significant market sector.

Traffic is also currently a huge problem in the city with traffic jams sprouting at just a minute’s notice,and this is before most of the property has even been built. You would shiver to think what levels of traffic will be present when all the building is completed. The lack of any reasonable public transport system doesn’t help much but the plans to build a monorail system to alleviate the problem will surely bring smiles to the faces of all Simpsons fans.

Unlike most world cities where property is built to service a growing need,Dubai is entirely the reverse,which is what makes it so hard to pin down. The long term plans laid out for the city by the all-powerful,and highly revered,Maktoum family drive property development. This in turn invites investors to buy into a market which has basically been engineered from nothing. It is this flagrant invitation to investors,normally a very bad sign of a market,which bothers most people about Dubai. Because of the unique way in which the Emirate has chosen to populate its territory it is difficult to see how else it can find buyers for the vast amounts of property it intends to build. Ray Norton of Larionovo is quick to point out,however,that there are more than 100,000 expats per quarter applying for visas to enter the country pushing demand for property here along with the huge investor rush into the market. It still has to be acknowledged that the very new and unique nature of this market has led to near mass hysteria on the release of new projects with some selling out in hours.

This obviously leads to spiralling prices and the scenario of properties changing hands many times before they are even built. Such activities have given the Dubai property market a bad name in certain sectors but others view it as an open invitation to invest and prosper. Whether Dubai suits you as an international property buyer will depend entirely on whether you feel the plans for the city into the future are visionary or an ill-judged attempt to fiddle with the mechanics of property based market economics. It is far too early to say which side will be proven correct but it will be very interesting to watch this new and unique market unfold.

Buy Property in Dubai

Dubai,a fast rising city known for its skyscrapers,shopping malls,and of course,it very popular sand and sun. This city is actually one of the seven emirates in the United Arab Emirates. Not too long ago,this was once a peaceful town known for its coral-and-gypsum huts located in the Bedouin traders and the pearl divers. But today,Dubai is becoming even more popular because of its excellently engineered buildings. Dubai is considered as the most populated and second largest in the United Emirates. Because of its fast-paced rise to economic growth,Dubai properties are now a hot market around the globe.

The wealth in this city has attracted many businessmen and tourists worldwide. At the moment,Dubai properties like real state are a great and safe investment. Among the notable major projects in this amazing city are the Palm Islands,and The World. There are also many other projects like the Dubai Marina,Business Bay,Burj,Dubai Complex,Dubailand,and the Dubai Waterfront. Of course,Dubai would not be this popular if not for its innovative and ultra-modern architecture. This kind of one-of-a-kind architecture is known as the skeikh. The popular edifices that use this kind of constructions are the Emirates Towers and the Burj al-Arab. The latter is known as the tallest hotel in the world today and is found on the offshore property in the Persian Gulf.

Dubai’s Business Bay is also considered as a very popular piece of property in the magnificent city of Dubai. This business district is where you can find hundreds of skyscraper buildings. The freehold policy of Dubai makes it an alluring place for investors and buyers from all parts of the world. This law is favorable to foreigners to own a freehold real estate in any part of Dubai. This kind of policy requires no stamp duty or any other tax which you can buy at a very competitive price. Since the introduction of this law in March 12,2006,investors started pouring at Dubai. Also,the demand in real estate is relatively high and might short supply many off plan developments upon the day of its release.

Dubai Foreigners holds the right to lease or purchase any portion of land after the three master-developers,Al Nakheel,Dubai Properties and Emaar approve them. There are three kinds of ownership that a foreigner can acquire after all the necessary requirements are completed,the freehold,usufruct,and the common hold.

With the many attracted foreigners and investors in this city,Dubai is now an international hotspot for all Dubai properties and real estate which are for sale within your reach. The rear market specifically sets the standard for property development in all corners of the world. With the recent developments in this city,there is no doubt that the Dubai real estate market is the perfect place for all your investment. So,if you are looking for Dubai real estate and other properties,you can always find the best one that offers extreme satisfaction.

Boom in Dubai Property Investment

Until a few years back,buying freehold property in Dubai was not possible for foreign nationals. Property boom in Dubai only ensued after some considerable changes were made to the emirate’s property laws. Currently,Dubai real estate sector is witnessing a rapid upward trend that’s expected to go even higher with the passage of time. Population of Dubai has grown manifold over the past few years given a sharp and growing increase in the number of expatriates. Both veteran and would-be investors across the globe are eyeing Dubai as the property investment paradise for a long time to come. Property for sale in Dubai has already succeeded in drawing the attention of foreign investors.

Investment in Dubai property,whether it’s buying property in Dubai for permanent relocation or business,or you simply want to cash in on the most popular investment trend in Dubai property i.e. buy-to-let,is very lucrative. The immense development Dubai continues to undergo with massive infrastructure projects reflects the exploding need for space for the country’s multiplying populace. Given these circumstances,the boom in Dubai property market doesn’t seem to slow down at any point in the foreseeable future. These upward trends of Dubai real estate make investment in Dubai property extremely risk-free for foreign nationals and they can choose to invest in Dubai even with their eyes closed.

Nearly all of the buyers of Dubai property find property resale and buy-to-let trend as the most attractive features of property ownership in Dubai. Some recent announcements point towards Dubai’s becoming a tourist hotspot in the near future with more recreation than ever. Newer entertainment and recreation projects are underway which have already drawn a great deal of international attention. The emirate,which is already termed as a playground in the desert,is soon to have more to offer to the world’s recreation seekers. This much international focus means an even stronger property market potential with returns that continue to shoot up.

To the benefit of investors,though not a positive sign for the buyers with no commercial intent,the demand for Dubai property,Dubai apartment,Dubai villas or any other type of property in Dubai by far outstrips the supply. This demand/supply disparity makes Dubai property investment an extremely attractive prospect for the foreign investors. As the experts of Dubai property forecast,the market is lucrative for the investors who already bought property in Dubai. But the market is not so friendly for those seeking rental property right now. If you’re one of those lucky enough people who have already secured property in Dubai,you’re likely to be reaping profits. But if you’re on the lookout for a decent rental accommodation in Dubai,you might have a hard time ahead as the prices are very high and are set to rise higher.

Experts speculate that the population of Dubai will be doubled in 2010. This will turn Dubai into one of the world’s hottest destinations for expatriates and holidaymakers alike and this just bodes so exceptionally well for property investors.

Advantages of Property Investment in Dubai

One of the reasons why Dubai continues to grow and thrive is that it is such an amazing tourist destination for the majority of European travellers. The impressive five year plan for growth and development initiated by the Dubai government makes Dubai quite attractive to investors worldwide. At the same time financing in a foreign country can be tricky at times. But Dubai is a good arena to seek financing because of the foresight of the Vice President and Prime Minister of Dubai,His Highness Sheik Mohammed Bin Rashid Al Maktoum in creating a secure financial law that protects both borrower and lender from all sorts of malevolence.

Investors who wish to invest in Dubai should choose well-backed planned properties that go along with the government’s scheme for mass development and beautification of the city to off plan properties that provide a more affordable means of entering the real estate market in Dubai. Applying for financing on Dubai properties can be done directly through their infrastructure for quick,easy and secure transactions that will get you into the action in the most competent manner possible.

One of the most important advantages of financing Dubai property is that investors are never subjected to some of the hidden fees that often complicate real estate transactions in other parts of the world. Moreover tax advantages are incredible when financing Dubai property as there are no taxes on capital gain or income taxes assessed on residential or commercial rental properties in the UAE.

The most important reason is to invest in Dubai is financial security. At a time when real estate,housing,and mortgages have lost their overall future value that they once held,this is the one spot in the world where owning land remains a secure and clever investment.