Investing in Dubai
Dubai is arguably the emerging city of the modern world. Situated in the UAE, Dubai is not only the regions flourishing commercial centre, but is a magnet for tourists and those seeking a luxurious and prosperous lifestyle.
Aware that the oil reserves will not last forever Dubai has set about realising their vision make Dubai the largest tourist and financial centre in the world.
A big step to realise this vision was taken in May 2002 when the crown prince of Dubai made a commitment to allow foreign nationals to own a property within the emirate. To date over 100,000 Britons have purchased second homes in Dubai, and the economic growth of the emirate gains momentum year upon year.
To be exact, Dubai’s economy grew around 16% in 2005 and is estimated to reach AED136 billion according to a statement from the Dubai Department of Economic Development.
In perspective, this rate of growth is expected to be higher than that of China, currently acknowledged to be one of the fastest growing economies in the world with a growth rate of 8.5 per cent.
Many of the driving factors behind investment in Dubai Property are as follows;
• The population is set to rise from 1.2 million to 4 million. Whilst traffic into Dubai is set to rise from 5 million to 15 million.
• All master planning is Government controlled so the demand to supply ratio is managed, thus maintaining strong growth & returns.
• No capital gains or income tax.
• The range of properties on offer is vast.
• The quality of build is high.
• No legal fees are required, although advice is recommended.
• The buying process is simple, with no national registration required.
• Flexible payment plans allow payments to be deferred following an initial reservation deposit.
• The average price of a studio apartment in Dubai Marina is around £140 per sq ft, in comparison to £316 per sq ft in Salford Quays, Manchester England.
• Capital appreciation has risen between 15% - 25% annually.
• High rental yields on completed properties.
• With the purchase of property you are granted the right to apply for residency visas.
