Property Investments in Dubai
Dubai is an urbane business and main shopping destination; this desert city offers all the latest technology and comforts. Developing at a rapid pace it is one of the leading holiday and tourist destinations in the world. Central to several continents it has an infusion of cultures that provide visitors with a unique and exciting experience. Although a compact city, it can offers the best in hotels, facilities, leisure activities and shopping opportunities and is a fashionable destination for corporate events due to its location and world class business environment. As one of the most desired property investment destinations in the world, any overseas buyers will achieve a high return. Key points to consider if interested in property investment in Dubai are discussed below. Dubai is one of the most modern, progressive and pro west Arabian states in Middle East. As tourism being the fastest growing industry here, tourism standards are high; every year the variety of activities and shopping attracts and pleases millions of visitors, last year Dubai hosted 4 million visitors alone. The amount of expected visitors for 2010 is estimated at over fifteen million and with the majority of hotels of a luxury standard with prices to match and nearly 100% full all year around, there is a high demand for alternative accommodation. Due to Dubai’s perfect strategic position, it is recognized as the key trading centre for the Middle East and many global businesses set up their regional offices in the city. Many new developments offer high tech facilities for businesses, such as Dubai International Financial Centre, Internet City and Media City. Dubai is an ideal place for business as it is tax free and accessible to Central Asia, the Middle East, the Eastern Mediterranean, Africa and the Asian Subcontinent. Dubai is blessed with a perfect location to do business, tax free benefits is one of the reasons but also its proximity to Central Asia, the Middle East, the Eastern Mediterranean, Africa and the Asian Subcontinent. With a population more than 2 billion people located around in these large areas, these regions are potential business goldmines. Ever since the government begun to allow foreign ownership of properties in particular areas of the city, overseas ownership has increased drastically. The government encourages overseas property investment by providing attractive deals to investors. Buying property can be up to 40% cheaper than renting, so buying a property might be a much more desirable option for investors. With international companies establishing offices and businesses in Dubai, employment has risen, Dubai attracts trained professionals and expatriates for better employment prospects, a higher standard of living, tax free and high salaries. This fact has resulted in a long-term need for property. Dubai government invested $40 billion dollars into the property market to try and supply the populations’ needs. Even with the ongoing construction projects, predictions are that it will be from 5 to ten years before the level of supply can be satisfied. There are many developments in progress in Dubai, but demand for rentals in the business and residential areas are still not capable of being realised. Buy-to-let investors are getting high profits from high rental yields in addition to their already high expected investment growth. Demand for property in Dubai is at its peak; with developers unable to supply the levels of demand property prices are high. Expatriates and other people in Dubai receiving high tax free salaries have an excellent opening to buy properties at low prices compared to properties in other countries. Low purchase and sales costs encourage overseas investors to Dubai and with banks providing mortgages to overseas buyers it makes more sense for investors to buy rather than rent. The population growth shows no signs of receding and Dubai property investors can be highly optimistic in future growth prospects for investment properties.