Dubai and Dubai Property
Of the many major areas of the world, there is something unique about the Emirate of Dubai and about Dubai property. An area of outstanding natural beauty intertwined with the most modern of architecture and buildings, and steeped in the most historical of traditions. The Emirate of Dubai is part of the United Arab Emirates and is seen by many as the doorway between East and West, an area where there are so many contrasts and contradictions, and where land and Dubai property is cheaper than many areas of London.
Having established itself as the trading capital of the area, Dubai has recently been branching out into tourism and is attracting a great deal of interest from the more technology based blue chip companies of the world. The city has so much to offer that it is difficult to know where to begin, with deserts surrounding the outskirts of the great city, to the mountains in the east, yet the central area is awash with the most up to date hospitals, schools and office buildings you could ever wish to see. This is an area where the ultra rich are only a stones throw from desperate poverty, where the most traditional of Islam cultures mix with the western world.
The city offers a corridor to the Indian subcontinent and access to a population of over 1 billion people, in a land which is crying out for investment and assistance. For many years there has been a constant flow of development, with oil money being a major supporter of the area. The recent rise in the oil price has released yet further capital and demand for property has remained consistently high. While property prices remain so competitive compared to the rest of the world, the strategic position of Dubai ensures that yet more foreign investment will pour into the city in due course.
Property in Dubai
Unlike many areas in the region the government of Dubai continue to act with, as oppose to against, the mountain of private foreign capital flowing into the state and directly into property in Dubai. This has resulted in many changes to local Dubai laws, many of which were designed to restrict foreign investment, and foreign ownership of property in Dubai. The government decided some years ago to abolish personal, corporate and sales taxes which is a major attraction to foreign investors, and foreign workers. This resulted in a mass of British specialists moving to the area for employment, hence a large presence of ex-patriots.
This in turn caused a boom in the Dubai property market, which had already been buoyant for some time. The boom was further encouraged by some of the most state- of-the-art infrastructure and facilities spread across the mass that is Dubai. For many they are experiencing a standard of living unsurpassed anywhere else in the world, a place where money is free flowing and employment opportunities are many.
Using the most modern of engineering and design techniques available, great swathes of the surrounding desert have been reclaimed and some of the World’s highest skyscrapers surround the outskirts of the city. There has been particular interest in property in Dubai from British expatriates, Saudi Arabians and Indians, which has ensured a level of interest unrivalled anywhere in the world.
In contrast to the surrounding states and countries, Dubai has one of the most stable of political and economic environments, in an area often blighted by conflict and controversy. This has encouraged more investors into the area, although the possibility of obtaining a valuable 10 – 15 year visa when purchasing a property is a further attraction. The great western tradition of mortgage finance has also entered the Dubai way of life, with 10 – 15 year mortgages now readily available.
The current stability of Dubai is further strengthened by close links with the US, in fact the Dubai currency is linked to US interest rates which have been at record low levels for some time. The above factors all come together to paint a very rosy picture for the area, and property prices are set to move further ahead for the foreseeable future.
Dubai Investment Property
While the city of Dubai is awash with some of the richest individuals and corporations in the world, the price of Dubai Investment property has remained surprisingly low. Compared to investment property prices in areas such as London, Dubai offers great value for money with investment property, as the main city continues to grow and grow. The infrastructure of the area leaves many other major cities of the world in its wake, with new developments and transport links appearing on a regular basis. With the Dubai government willing to invest so much of the local money in to services and infrastructure it is not surprising to see overseas investors follow suit into the Dubai investment property market.
The tax laws in Dubai are in stark contrast to the major cities of the world, with no local, corporate of sales tax. This has encouraged some of the highest standard skilled workers to the area, which has attracted yet more foreign companies to set up. The growth in the tourism industry of Dubai has been phenomenal with the 3.4 million visitors in 2001 expected to rise to over 6 million in 2010 – from a standing start the area is becoming a magnet for overseas visitors.
The current rate of return on property investments is in the region of 10 – 15 percent per annum, with this rate expected to continue for the foreseeable future, and rental yields in excess of 10% are further evidence of strength in the property market.
The Future for Dubai properties
Dubai is a city which continues to embrace some of the traditional values of the west, while retaining the fundamentals of an Islamic state, which has helped integrate the various groups of the Dubai society. Strong links with the US have proved useful in the past in times of potential conflict, which is another attraction for investors to purchase Dubai properties.
As the economy continues to prosper, and the unique tax laws continue to attract the best of the skilled worker from around the world, the demand for property and further investment in the area is assured. Dubai is a fairly unique situation which while expanding aggressively, still manages to retain a property supply and demand ratio in favour of demand, thus ensuring a buoyant market for Dubai properties.
A growing economy, low interest rates and a stable government offer the perfect scenario for further economic growth. Dubai is a truly unique area of the World, which continues to prosper.
Published At: https://www.isnare.com