For Links to further guides and developments scroll down
Why Invest in Dubai
Property is cheap on an International level, property is also cheap in relative terms. For example, at this moment an average villa will cost around $1,000 per square metre in comparison to London Docklands where it would cost $5,000 per square metre. There are very few modern cities in the world where high-standard property is priced so low.
Foreign Ownership
Dubai is in the process of creating an international property market from scratch, with foreign ownership of freehold only introduced in 2002/2003. Thus buyers are given an exceptionally good deal to encourage them to be pioneers.
Shortage of supply
The Dubai Government is working hard to prevent a shortage of supply and is giving land to developers as an incentive. What looks like massive supply today in Dubai may be nothing compared with demand in a few years time. Dubai is after all growing its GDP by 7-8% a year and shows no sign of slowing down, quite the contrary.
Tax Free Income
Dubai is a city where a lot of people earn high tax-free salaries and are in a position to support higher house prices. This is a city with a 20-year track record of strong economic growth and will continue to attract foreign and regional inward investment.
International Business Centre
Long recognised as the leading regional trading hub of the Middle East, Dubai has developed rapidly over the past 10 years and has transformed itself from an oil dependent region, into a highly diversified international business centre of global significance, which offers opportunities for UK business people in all sectors. At Present, over 500 UK companies have been set up in Dubai international business and re-export centre.
Tourism
Over 3.4 million tourists visited Dubai in 2001 and this figure is expected to grow to in excess of 6.0 million by 2010. Dubai is going from strength to strength.
Buy v Rent
Any long-term resident will pay out a fortune in rent. Rental yields of up to 10% are achievable in Dubai compared to 5% in Central London.
Returns for Investors
Properties are appreciating steadily at the rate of 10% - 15% per annum, (for some developments even greater). It is estimated that by 2009, based on current growth, your initial financial investment is expected to at least double.
Attractive Currency Rates
The local currency, AED (Dirham) is fixed with the US dollar (3.675 AED: $1) and with the pound sterling averaging 6.85 AED: £1. The recent strength of the pound against the dollar means by investing now, investors are achieving a 10% - 15% ready equity compared to the same prices a year ago.
Taxes
There are no income or property related taxes of any kind. There are no business taxes with the exemption of the banking industry.
Ten reasons to invest in Dubai property
The Dubai real estate sector is barely two years' old. Getting in at the ground floor of a new property market has its advantages.
1. Prices are inexpensive by comparison to other similar trading hubs around the world, and are up by more than 20% in the past two years. There is scope for a substantial further rise, and certain properties have doubled in value already.
2. Property is a good hedge against inflation which is showing signs of re-emerging in the global economy. At such times the higher cost of debt servicing can usually be past on in additional rent, while the value of the property inflates and its debt is unchanged.
3. Rental income from property is a stable source of income, and while it might fluctuate, is highly unlikely to vanish altogether. Compare that to interest on deposit accounts or dividends on shares.
4. Real estate always has a residual value, although prices can certainly fall as well as rise. But property values will never fall to zero unlike shares and hedge funds.
5. Property is a kind of hybrid asset with the capital appreciation of a stock but the income producing capacity of a bond.
6. Investors typically have more control over the nature, timing and size of real estate investments. This is partly because they are tangible and easier to understand, and diversification is readily available in the form of different types of property.
7. Dubai property is open to any investor from anywhere in the world, unlike the local stock market. This means greater liquidity and more funds in the marketplace.
8. Demand for property typically picks up during an economic boom such as the one being seen in Dubai now. With massive projects such as the Dubailand theme park, Dubai Marina, and Dubai International Financial Centre (DIFC) coming to fruition, this looks a wise time to invest in real estate.
9. Real estate is always an excellent collateral security against loans, and allows debt finance to be secured at the best rates.
10. Property portfolios offer great scope for diversification of risk into different property types, locations and rental levels. This helps to spread the risk of an interruption to income flow.
It is only now, that people are starting to look around major places in the world where they can invest in property and get good rent return and good capital growth. If you look at the press Dubai is receiving, the developments we have on offer, what is happening in the markets, how long it takes for off plan properties to be snapped up, you will realise that the Dubai property market is still ready to increase a huge amount.
It is planning for the Football World Cup, the Olympics, an F1 race and planning to take the numbers of passengers coming in through the airports in excess of what Heathrow copes with now. It is expanding Dubai International Airport, It is building a new one at Jebel Ali, and it is building the world’s tallest building and the world’s largest underground shopping centre as well as three palm islands in the gulf, one world, and one pearl island resort. These are the only man made objects viewable from space after the Great Wall of China.
Dubai represents a unique opportunity for investment. With the presence of free-trade zones, rising tourism (over 50 four and five star hotels in the city) and a GDP that increases an average of 7.5% per year, there are countless reasons for an entrepreneur or an investor to consider Dubai. By contrast Western economies consider their growth to be strong at 2%.
With expected population growth, investment increasing in the property market, Dubai continues to represent a strong opportunity even with the massive amount of development taking place in Dubai. So contact us now to discuss the best current investment properties and special offers:
|
