Since 2002 the real estate market in Dubai has seen rapid growth. The reason behind this was the change in ownership legislation that was passed by the governance post 2002.
The main point of the legislation change was to allow non-nationals to own property outright freehold in the region. This as an effect has had a resultant effect of bringing large investment into the region and attracting a large amount of foreigners into the region.
Due to the tax implications of working in the area (100% tax free) amongst other things Dubai has attracted a massive amount of workers in to the region.
With this initial massive influx of workers and individuals into the area there was a gross under supply of housing in the area,and this has had the effect over the past few years of raising property prices as well as rents to unprecedented levels in the region. Residential property values are still rising in the region but at slower levels seen over recent years.
With developers like any business observing this aggressive appreciation being achieved in the property market in Dubai larger amounts of developers started to build ever more opulent as well as quantities of accommodation to cash in and also satisfy demand.
What many are starting to believe now is that this demand that had fuelled the growth in the property market was mainly fuelled by investors speculating and not end users.
Also there will be a large amount of developments that will reach completion over 2009-2010,so many are believing that these factors combined will cause a correction in the market due to an over-supply in the market.
So the main factors that will determine if a correction is imminent in this region is going to population growth,and skilled at that. If Dubai can continue to support an expanding skilled workforce who can afford the high housing costs then we can expect to see potentially a stabilising of the market if not then I would assume a potentially large correction in store specifically in Dubai.
This has been one of the reasons that many investors have started looking at other less developed Emirates undergoing growth to invest in property.
In order to make wise investment decision,it is of paramount importance that you know how the property market of Dubai operates. This is quite important because Dubai property market is still in its early stages. Therefore,it is hardly a surprise to know that property market of Dubai operates differently from the US or United Kingdom market.
Getting Professional Help
If you are interested in purchasing a commercial property in Dubai,make sure that you take some professional help first. Most of the real estate brokers have direct access to commercial properties from real estate developers. Real estate brokers will not only take into account your requirements but also give you advice through out the buying process and help you deal with the legal aspects too.
Off-plan Properties
Real estate developers of Dubai have realized the fact that at present,the real estate market is buzzing with demand for commercial property. Because of this,recent months have seen various new off-plan projects being released in the market. Plenty of businesses are seeing this new trend as a good choice to pay high rents that are being commanded in some portions of Dubai.
With high growth rate in Dubai,plenty of foreign business houses are interested in doing business here. The Dubai government has realized that need of the day is quality commercial space that is in high demand by local as well as foreign companies. If the government is not able to provide that,chances of achieving an even higher growth rate get slim. It is worth mentioning in this regard that there is quite a bit of under supply of office space for businesses in Dubai at the moment.
Less Volatile Investment
Point to be noted here is that commercial property investment is normally much less volatile as compared to the residential property investment. It has been noticed that as a tenant you are required to stay in the premises for a longer period of time. On the basis of the lease agreement,you are restricted to hold on to your investment.
Ready Occupancy
At this time,there are only small finished commercial developments completed in Dubai. If you are one of those investors who want immediate returns on your investment,then purchasing commercial property in Dubai is best for you. Because of shortage of completed property in Dubai at present and the big number of new businesses also coming,there is a good chance that demand may outweigh supply.
To conclude it can be said that purchasing commercial property in Dubai is recommended and highly profitable at this time. Not only it is fruitful as an investment option but also quite advantageous if you want to start a new business. However,before you buy commercial property in Dubai,contact one or two reputed real estate brokers to get some insight into the property market of Dubai. Following this process will ensure that you will not make any mistake during the buying process.
Dubai property is one if the most convenient places when it comes to settling down or in doing business. In the recent times there have been many investors who have been interested in the Dubai property.
The country has the many things to offer people like affordable luxury houses,tax free environment,and capital growth and is one of the world’s fastest growing city.
Including Dubai there are other six emirates that make up the United Arab Emirates. The Dubai real estate market has experienced the boom with excellent luxury properties to offer. In the past few years,the country has got many new constructions and several real estates projects.
The Dubai projects include offshore properties like The World and Palm Islands. The inland projects include the Dubai Waterfront,Dubai Marina,Business Bay,The Burj Dubai Complex and Dubai land. Dubai has got the world’s tallest building i.e. the Burj al-Arab.
Previously,no one was able to own property in Dubai but after the announcement on March 12 2006 that the non-United Arab Emirates nationals can also purchase the property and since that time there has been much rush. Foreigners will be able to own the property only after they submit a no-objection letter which states that all payments transactions are fulfilled.
The three kinds of ownership in the legislation are the freehold,common hold and usufruct. In a free hold property the house owner will have to complete ownership rights and then the person will be handed over the property. In usufruct the person can use another’s property for long term which should not be less than five years. In common hold the person can get hold of the property by sharing it with some other person also.
Hence you can opt from any one of the above and get hold of your property.
Dubai is now being recognized as the business,leisure and sporting capital of the Middle East. Overseas property buyers and its millions of visitors each year are attracted to the liberal attitude and relaxed environment. Live and let live is the feel of Dubai where the majority of the 1.5 million populations are in fact expatriates.
Doing business in Dubai is surprisingly easy with minimal bureaucracy and a can do attitude that makes Dubai an attractive place for big business. The country wants inward investment and to increase its population. Politically stability and low crime are also one of the features of Dubai. International visitors feel safe and the presence of heavily armed police and army is not present in Dubai. How this state has achieved such an oasis of tranquility is remarkable. The ruling Royal family are admired and spoken highly by the people of Dubai. It may be the lack of political interventions or political parties in Dubai that may indeed make this place harmony.
The climate in Dubai is sub tropical and arid rain is seen during the winter months of December to March. The average temperature is between 10-30 degrees Celsius and can reach up to 48 degrees in July and August.
International investors buying property in Dubai include Russian,British,Indian and Pakistani investors. The French are now seeing the potential of this region and I anticipate will also become one of the major investors in this region.
Investors from the Middle East and United Arab Emirates are amongst the earliest investors. Buying property in Dubai as an overseas buyer is quite straightforward. The majority of real estate in Dubai is available off plan or pre construction. Typically as property developers launch a project there is flurry of activity amongst investors. Seasoned investors have speculated about the bubble bursting in the Dubai real estate market.
Oversupply has led to concerns by overseas property investors. In 2010 the number of homes in the region is set to double to 530,000. The commercial sector is also expanding at a rapid rate with office space set to triple,so who is going to buy all this real estate? Dubai Property Executives explain how Dubai is as great place to invest.
Nakheel is a government backed property developer Chief Executive Chris O’Donnell ‘People do get a little concerned about Dubai,thinking we are just building and hoping we will sell the product on completion. But we sell product prior to starting construction. Everything you see at Palm Jumeriah has been sold” Property Developers Dubai Properties Chief Executive Mohammed Binbrek “We do not begin until the units are sold and then we ask for a 70% deposit.” When asks if he thought the Dubai market would crash with so much construction he replied ” Around 40% of the population is under 20 add this factor to a population that is growing it implies much more houses.
With so much construction planned to make Dubai the city of the future it is a great time to buy property in Dubai.
Tags: buy, dubai, find, freehold, homes, housing, investment property, investor, proper, real estate, sell
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December 8, 2008 2:40 am | 
Comments (0)
As you know Dubai’s property market is one of the most famous markets in the world.The design of the towers are wonderful.The construction materials are perfect.The prices are good.The government is planning to build the first and best things in the world like the tallest the biggest the largest and….in Dubai.I am sure that property is one of the most important businesses of the government.They are going to increase their populations to double.
They have some huge projects such as The World (including many islands shaping the World),Palm Deira,Palm Jumeira,Palm Jebel Ali (three big islands shaping palm),Dubai sport city(the fist city of sports in the World),Dubai Media City(the biggest in the world),Dubai World Central International Airport(the biggest airport in the world),Golf World,Dubai Motor City(Formula 1).
As an investor you can invest in many projects in Dubai,as the prices are increasing everywhere.You just need to find the best one.Many people from different countries of the world started investing in Dubai.Almost 178 different nationalities live in Dubai and most of them are investing there.
You can also find many projects under construction and ready ones if you are going to buy something as an end user . Places your family and you will love and may find it the best place to live.You may have greenery,waterfront,good apartment design in your dream house or apartment.
All means that it is wise to start business in U.A.E and specially Dubai property market.It will be a great experience for you and the outcome will be unbelievable.
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