Why buy investment property in Dubai?
 Dubai
is the fastest growing city in the world. As the most liberal member of the UAE; Dubai embraces the West with unsurpassed
hospitality, and unrivalled investment opportunities.
With innovative and futuristic developmentsin Dubai like the Palms, the World and Dubai Waterfront Project, not to mention Dubailand;
tourism is anticipated to rocket from 4 million to 15 million by 2015.
Then there’s the population increase arising from the influx in Fortune 500 companies setting up in Dubai Free Trade Zones (such
as Internet City, Knowledge Village and Media City), plus Dubai International Financial Centre with over SIXTY globally recognised Banking
Organizations already subscribed.
As the Commercial and Tourism sectors flourish in Dubai, hotel occupancy in Dubai is already one of the highest in the world at 80% per
annum. The Dubai property market is set to boom.
 Property
Investment in Dubai - Cheap AND Tax Free
Yes - Investing in property in Dubai is cheap AND tax free. Both absolutely and relatively terms.
Consider Dubai.
Firstly, London developers were recently in Dubai trying to sell apartments in the Docklands at $5,000 per square
metre. Villas in Dubai typically cost around $1,000 per square metre. There are very few modern cities in the
world with high-standard property as cheap as it is in Dubaip.
Secondly, the total cost of buying a new property in Dubai is almost exactly the same cost as renting one! So even if,
say over five to ten years rental yields in Dubai were to fall and house prices drop, you will still have money invested in a property rather
than absolutely nothing at all. Safe as houses?
Compare Dubai.
Rental yields of are up to 10% in Dubai against under 5% in Central London and then consider that Amlak's present mortgage rate is 6.5%.
Whats in it for the investor in Dubai after all property prices are so very cheap.
Simply, supply and demand.
 First,
there is a shortage of supply. The Dubai Government is trying hard to prevent this by encouraging developers, and giving them land is the
best way to do this. But development will lag behind the demand curve. Developers have to risk their own capital, and in a market with few
developers they will tend to lag behind the demand curve to maximize their own profits.
There are very few developers in Dubai and each of these have to have a Sheik as a sponsor. Ultimately, each developer is overseen by the
government and therefore does not have any risk attached to them.
You must remember that Dubai is a country that wants to increase tourism and reputation. The Dubai government will not accept workmanship
that is not to the highest standard.
Second, building costs are rising and developers will have to pass this inflation on in higher property prices. This is another fundamental influence on property prices that nobody can control. The low US dollar is pushing up the cost of materials from Europe. So too are high energy prices, as the production of building materials uses a lot of energy.
Third, Dubai is in the process of creating an international property market from scratch, with foreign ownership of freehold only introduced last year. Thus these buyers have had to be given an exceptionally good deal to encourage them to be pioneers.
As the second-hand market emerges, and the legal position of owners becomes absolutely clear, then this element of risk will go, and lower
risk will mean higher property prices in Dubai.
Finally, Dubai is a city where a lot of people earn high tax-free salaries and are in a position to support higher house prices.
Dubai is a city with a 20-year track record of strong economic growth and will continue to attract foreign and regional inward
investment.
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