10 Reasons Why to Invest in Dubai Property:
- Tax free environment
- Thriving Tourist Destination with fantastic amenities backed by government investment
- Expanding economy, booming Commercial Centre with massive job opportunities
- Relatively cheap property prices – and steady price appreciations
- Excellent rental potential for those investors who buy Dubai property
- Low cost of living - one of the world’s highest standards of living
- Vibrant, Cosmopolitan community with peaceful co-existence of ethnic groups
- A truly innovative city, with a “can-do” attitude – world’s 1st 7 Star Hotel, the Palm Island which was man-made, and other world class attractions!
- Very low crime rate – one of the safest places to live
- Year round sunshine
Dubai has something for everyone. Running short on oil reserves, over the last few years, Dubai has successfully been turned into the financial, commercial and tourism capital of the Middle East – and it doesn’t stop there!
Dubai has quickly grown into one of the world’s most glamorous property investment market, and it seems everybody who is anybody wants a piece of Dubai. But it isn’t just for the rich and famous, with prices starting from just £45,000, the property market is open to everyone. Although Dubai properties have attracted investment from an astounding number of overseas property buyers over the last few years with some making stunning short term gains, most of the major attractions are still under construction, meaning this property hot spot still offers a sound investment opportunity in the medium term and longer term. Here are some of the reasons, explained a little further, why buying property in Dubai is still such a sound investment -
Cheap Property in Relative Terms:
Dubai property prices are inexpensive by comparison to other similar trading hubs around the world, for example, an average villa in Dubai will cost around $1,000 per square metre in comparison to London Docklands where it would cost $5,000 per square metre. The attractive and stable currency rate also makes buying Dubai property even more appealing – as the local currency AED (Dirham) is fixed with the US dollar. The recent strength of the pound against the dollar means by investing now, investors are achieving a ready equity compared to the same prices a year ago.
Rental Returns:
With a high demand for long term property rentals, Dubai is a great investment opportunity for those buy to let investors. Rental yields are higher than those seen in Britain, Ireland and many of the New European capital cities. What’s more, Dubai rents are paid in advance, sometimes up to one year in advance, which is surely both reassuring and motivating news for Dubai investors.
Great Incentives for Foreign Ownership
Dubai is unique in that it is going through the process of creating an international property market from scratch, with foreign ownership of freehold only introduced recently. As a result, Dubai real estate buyers are being offered exceptionally good deals to be the pioneers of this market, with very low deposits.
Growing International Business Centre means more Job Opportunities
 While Abu Dhabi is the capital city of the UAE, Dubai remains its commercial centre. Dubai has long been recognised as the leading regional trading hub of the Middle East, and has now become an international business and re-export centre. Dubai has developed rapidly over the last decade, transforming itself from an on oil dependent country into leading regional commercial hub with a state-of-the-art infrastructure and a world-class business environment, providing investors with a unique and comprehensive value-added platform that makes Dubai the logical place to do business! Businesses can also benefit from a relatively low cost work environment, staet of the art telecommunications, competitive energy costs, competitive real estate costs and competitive import duties – much less expensive than Singapore, Hong Kong, Cairo and Bahrain!
Tax Benefits
There are many tax benefits for both the employee and employer setting up in Dubai. Dubai is a city where many of its residents earn high tax-free salaries and are in a position to support higher house prices or need to take out long rental agreements. For those looking to set up business in Dubai, there is also the attraction of 0% corporate tax and 100% repatriation of capital and profits.
More Jobs
Dubai is now home to over 1.3M with more than 75% of the population employed. More than 80% of the population in Dubai are expatriates from across the globe and the city is home to almost 200 nationalities. Many businesses are moving to Dubai due to its location and the tax benefits. With growing job opportunities, sunshine factor and the glamorous edge that Dubai has to offer, it is no wonder that 100,000 extra people are expected to arrive in Dubai every year. Such large scale immigration can only increase the property prices and sustain the property rental market.
Supply V Demand
With the huge surge in property development in Dubai, it may look like there is massive supply, but this is nothing compared to the projected demand in a few years time. With the economy growing at 10% plus a year and a rise in immigration, this will reflect in a huge demand for accommodation. And as always, location is key. There can only be so many properties in prime location – so now is the right time to buy!
Booming Tourism Destination
In 2006, Dubai’s modern airport handled 28.7M passengers and 33M are expected in 2007. Hotel occupancy reached 85% in 2006 (6.5M guests serviced by 414). Dubai has big plans to develop tourism further, announcing the world’s first seven star hotel, Burj Al Arab, the world’s biggest shopping mall, the first underwater hotel, the longest indoors ski slope and not forgetting – Dubailand!
Dubailand is a tourism, real estate, hospitality, entertainment, leisure and retail mega project under development, covering an area of 3 billion square feet, and is being built to secure Dubai as the premier tourist destination for the Middle East.
Dubai Land themepark will contain 45 mega projects and over 200 sub projects, making it the most ambitious tourist destination ever created. Dubai land is being created to appeal to the widest audience of tourists, covering all age groups, nationalities and activities. On completion, Dubailand will be twice the size of Walt Disney World Resort in Florida, making it the biggest theme/amusement park in the world. Dubailand is being built in 4 phases, each of which will last for 5 years, due for completion in 2020.
The various projects being built in Dubailand have been categorized into six themed zones, which focus on a different aspect of the Dubai land experience. Each of the zones, referred to as worlds, within Dubailand has been planned to offer an unforgettable experience for both children and adults - Attractions and Experience World, Sports and Outdoor World, Eco-Tourism World, Themed Leisure and Vacation World, Downtown, Retail and Entertainment World. For more information on DubaiLand click here |
