Investment Property in Dubai

A few years back,many investors would have thought that an orthodox country such as the UAE could be a lucrative real estate investment destination. But with a little foresight and intelligent alliances,the rulers of the UAE have transformed the oil-dependent Middle East country into a major tourist hub with huge investment opportunities being thrown open to the global real estate investors looking to buy property in Dubai.

Dubai is a dream destination as far as temporary or permanent visitors in the country are concerned. The Europeans just love the modern amenities readily available for cheaper prices than their home countries. The guarantee of quality life at highly affordable cost of living makes Dubai a real hot potato for the British real estate investors.

Property Market in UAE - Dubai

Dubai is on the move and some serious developmental projects are under way on a large scale to transform the fortunes of the country. Almost everyday,reputed international companies are exploring the means of setting up their shop in Dubai. This is attributed to some aggressive promotional and developmental strategies adopted by the government.

The Burj Tower,with 188 storeys,is set to be the highest building of the world housing the 7-star Al-Burj Hotel. The Burj Tower is the jewel in the crown as far as high-rise and skyscrapers are concerned. Dubai is planning to host more than 200 buildings to increase its population from present 1.3 million to 4 million by 2015.

The country as a whole has some enchanting sites to visit. From the sand dunes of great deserts to pristine beaches to rugged mountains to lush-green well-maintained parks to ancient villages to places of worship to swanky shopping malls,you name it and you have it in and around Dubai.

The country offers an open port with low import duties. That’s why duty-free shopping in Dubai is on a high-priority list for the locals as well as visitors in the country. It is impossible to find a woman who has not heard about the annual Dubai Jewellery Shopping Festival.

Many European families prefer Dubai as a second-home destination because they can easily find maids and helpers at a fraction of what it costs in Europe and America. Such facilities are common in Dubai due to a large migrant population from Asian countries,like India,Pakistan,and Bangladesh,who are looking for menial jobs with decent pay.

Even though the UAE is a Muslim country,Dubai is an epitome of multi-culturalism in the Sheikhdom. For long,it was dependent on the Petrodollars for perking up its economy. However,the recent interest in developing tourism and tourist-related activities in and around Dubai means the investors are flocking in their droves.

International Golf and Tennis tournaments have lifted the global profile of Dubai and it’s been increasingly seen as a hub of international activities,particularly in the Middle East. You can also indulge in plenty of aquatic adventures,such as scuba diving and snorkelling,on a vast Mediterranean coastline. And while,in Dubai,don’t miss out on exploring the Manhattan of the Middle East,the Abu Dhabi City!

Dubai Calling !

Seeing the growth potential of Dubai,the government has emersed itself in overdrive in attempt to attract high-end as well as low-end global real estate investors. For the high-end investors,there is Palm Island property which currently attracts international celebrities,like David Beckham,don’t be surprised if your sharing your neighbourhood with a top Hollywood or sporting celebrity!

Even if you are planning to buy property for rental purposes,there’s no place better than Dubai. The city is fast turning into a services hub,which generates immense demand for Studio Apartments as well as separate dwelling units for small and medium families.

Some of the other attractive features that’ll surely lure you to invest in Dubai property include -

No Capital Gains Tax

Immense capital appreciation (15% - 25% annually)

Simplified buying process

Freehold for foreign investors

World class entertainment and other facilities

Year-round sunshine

The price of Studio Apartments in Lakeside Development - IMPZ start from £49K,and other properties starting from as low as £23,000. Cheap apartments in Dubai are fast becoming a favourite of the astute property investor.

The Disneyland attraction in Dubai also contributes to a huge demand for Dubai property from just about every kind of investor.

The best part of investing in Dubai as an overseas investor is your status as a property owner. You will be a freehold owner of the Dubai property you purchase. To meaningfully make investment attractive in Dubai,the government has also relaxed several formalities and done away with rigorous procedures. It’s now much easier to invest in a high-end Dubai property with minimum help from a legally qualified professional. However,the language issue may compel you to hire a professional who can guide you accurately in realizing your Dubai real estate dreams.

Property in Dubai, Abu Dhabi - Guide to Buying Property in the United Arab Emirates

Overview

In recent years,the government of Dubai has reformed the property laws in that country. Through this reformation process,more and more people have found that buying residential real estate and investment real estate in that country is ever more attractive.

Historically,many foreign nationals were reluctant to invest in real estate in Dubai because there was a great deal of uncertainty as to exactly what type of real estate interest a person could actually obtain by investing in real estate in that country. Specifically,the most desired type of interest in real estate is what is known as a freehold estate. Legally speaking,in Dubai and in other countries the world over,a freehold estate is one in which a person has an absolute interest in a piece of real estate and can convey that real estate to any other person or entity without any encumbrances to such a conveyance. It is the state in which a person has an absolute ownership interest in a piece of real estate.

Investment Property in United Arab Emirates - Dubai

Far and above,the most common type of real estate purchase that foreign nationals are making in Dubai involves investment real estate. In recent years,the government of Dubai has made a concerted effort to draw more foreign investment into that country than at any other time in the history of Dubai.

By way of example,a significant number of foreign nationals have invested in business and commercial property within Dubai. More often than not,a group of foreign investors tend to come together to invest in a particular commercial property in order to spread the risk a bit. Even though Dubai is one of the more stable countries within that particular region of the world,the Middle East remains something or a powder keg and the future stability of the region is always a concern.

Residential Property in United Arab Emirates - Dubai

The demand by foreign nationals for single family dwellings historically has been nominal. However,in the past decade,the number of people from different nations who can be found seeking single family dwellings in Dubai has increased by nearly 100%. There are two primary reasons why more foreign nationals have become interested in single family dwellings within Dubai.

First,with Dubai and its government becoming more interested in playing a larger role on the world’s economic stage,there has been something of a concerted effort at attracting foreign business enterprises to that country. As a result,there are more foreign nationals who have elected to purchase real estate in that country for residential purposes.

Secondly,throughout much of the Arab world and into Europe and Africa,a growing number of people from these other nations have begun to look toward Dubai as a place to maintain vacation or holiday property. More and more people have elected to make the purchase of second residence in Dubai for vacation and holiday purposes.

Residential Real Estate - Apartments in United Arab Emirates - Dubai

As mentioned previously,due to the influx of foreign nationals into Dubai over the course of the past decade,the demand for residential property is on the increase. Many foreign nationals have turned to purchasing and owing apartments for residential purposes.

Generally speaking,even rather luxurious apartments can be purchased in Dubai for comparatively reasonably prices. For example,a person generally can make the purchase of an apartment in Dubai that would cost considerably more for a comparable unit in many other countries around the world .

Holiday Property in UAE Holiday Resorts

As referenced previously,a growing number of people have begun buying and owing vacation property within Dubai. This includes foreign nationals who are turning to Dubai as a place to travel to for vacation or holiday purposes.

Because Dubai is one of the most stable nations in all of the Arab world,many more well to do people from other nations in the region are turning to Dubai as a location in which they can own second or vacation residences. In addition,a growing number of Europeans are also taking to purchasing vacation properties within Dubai. The trend towards the ownership of vacation property by foreign nationals in Dubai is expected to increase over the course of the next two decades,according to real estate analysts who have spend a great deal of time considering real property trends in Dubai.

Specific Steps to Buying a Property in United Arab Emirates - Dubai

Since the 1940s,most foreign nationals who had an inclination to purchase real estate abroad have shied away from buying such property in any of the countries in the Arab world. There are two primary reasons why so many foreign nationals historically have avoided buying real estate in Arab countries,including in Dubai.

First of all,as news reports have recounted over the course of the past sixty years,the Arab world is far from being the most stable region in the country. Wars and violence have been common occurrences within that corner of the world.

The second reason why so many foreign nationals have avoided buying and owning real estate in the Arab world rests in the fact that the laws governing the ownership of real estate in many of these countries has been complicated and structured in such a way that it overtly discouraged foreign investment in real estate. Indeed,many countries that make up the Arab world have prohibited foreign ownership of real estate during much of the past fifty to sixty years — including to the present day.

With all of that said,Dubai has been on the vanguard of creating foreign-friendly real estate laws that encourage the investment in real estate by foreign nationals. First and foremost,the laws in Dubai have been reformed to make it abundantly clear that a foreign national can purchase and own outright real estate within that country. A foreign national can obtain a freehold interest (as has been discussed previously) in real estate in Dubai.

In Dubai,the first step in buying real estate is an oral offer to a seller. In Dubai,a foreign national needs no special permission to make the purchase of real estate in that country. In addition,unlike some countries (including some in the Middle East region of the world),a foreign national can own real estate directly and does not have to bounce through an extra set of hoops towards the goal of buying and holding real property.

Following the acceptance of the oral offer,an initial real estate sales contract is drafted and executed between the parties. A deposit — in an amount negotiated by the parties — is placed at this time by the buyer to the seller. Generally speaking,the deposit is not refundable unless the seller of the property is unable to convey ultimately the real estate to the buyer. In other words,barring some snafu by the seller,a buyer will lose his or her deposit if he or she backs out of the contract.

In Dubai,a mortgage lender from nearly any country in the world can provide financing for the purchase of real estate in that country. What one needs to bear in mind when buying property in Dubai is that many times a lender will require collateral beyond the property located in Dubai,beyond the real estate being purchased. In most real estate transactions the world over,the only collateral the lender requires for a mortgage loan is the real estate itself that is buying purchased. However,when a foreign national is making the purchase of real estate in Dubai,a mortgage lender in most instances will require collateral beyond the actual real estate situated in Dubai that is being purchased.

The primary reasons for the requirement for additional collateral when obtaining a loan to purchase real estate in Dubai include the general instability in the region. There is a concern on the part of some mortgage lenders that something might cause a disruption in Dubai that might effect the real estate collateral in that country. Thus,the typical lender will want additional collateral for any loan. Additionally,while the real estate related laws in Dubai are very liberal,there is always some concern that a new regime might take control of the country causing a disfavor able alteration in the real estate laws in that country. Again,for that reason,lenders desire additional protective collateral in regard to the purchase of real estate in Dubai.

With this in mind,when purchasing real estate in Dubai,it is imperative that a potential purchaser makes certain that he or she has access to other property that can be used as additional collateral for the purchase or real estate in that nation.

Once the various requirements of the initial contract are satisfied — the buyer obtaining financing,the seller making certain that the property is free of any encumbrances that might prevent a conveyance to the buyer — a final contract is executed,the remaining money due to the seller is paid and a deed for the property is given to the buyer who will become the new owner of the real estate at that juncture.

Property Abroad always recommends using a Solicitor or Lawyer.