A Guide to Dubai Property Investment
With its sparkling Persian Gulf coastline and incredibly varied cosmopolitan feel, Dubai is attracting a ton of international attention as of late. As scores of holidaymakers, expats and retirees make their way to Dubai’s warm shores, many investors are finding their dreams lie in its sands.
Dubai’s stable government, booming population and promising property market are combining to bolster investor confidence in the region. We at Nubricks.com cite the following 10 reasons as those driving investor confidence in Dubai property investment: -
1) Dubai’s Stable Government is Attracting Investors, Holidaymakers and Expats from All Over the World
Dubai is a part of the United Arab Emirates federation. The UAE’s government is centred on a constitution that was established in 1971. The government consists of a Federal Supreme Council that includes the rulers of the seven emirates. It also has a president, vice president, council of ministers and a federal national council. Dubai’s strong political stability combines with a variety of other factors to make investors here feel very confident in the nation.
2) Dubai’s Strong Economy Provides a Very Attractive Atmosphere for Investors
Dubai’s economic stability and strong growth combine to make this region very attractive to foreign investors. The UAE’s overall economy is very strong; the GDP is an estimated USD 67.4 billion with a 5% per annum growth rate and the country’s economy is fuelled by oil, gas, petrochemicals, tourism and other strong industries. Dubai is considered the fastest growing city in the world in terms of its population, and to accommodate the increasing population and all the businesses that are relocating to the emirate, it is estimated that some 50% of the world’s cranes are hard at work on property projects that total well over USD 100 billion in Dubai. Dubai’s stability and rapid growth are making this region incredibly attractive to investors who wish to see promising and sustainable returns on investment.
3) Dubai’s Anticipated Population Explosion is Working to Inspire Investor Confidence and Fuel Property Investment Dreams
Dubai is positioning for an anticipated population explosion. The present 1.3 million population is set to double by the year 2010. With a population that already includes about 80% immigrants, this region is truly cosmopolitan and becoming more so. For example, the British government estimates more than 100,000 Brits presently reside in the UAE. The constant growth in Dubai is keeping demands for property high. From buy-to-let to resale potential, investors are finding plenty of reasons to be inspired by Dubai’s property market.
4) Dubai’s Strong and Growing Tourism Industry Attracts Investors with Multiple Strategies for Investment Returns in Mind
Tourism in the whole of the United Arab Emirates is strong and continuing to grow. The World Travel & Tourism Council estimates a per annum growth of about 4.9% through to the year 2017, following a 9.5% growth rate in 2007. Dubai alone is said to issue about 800 tourism visas a day. The strong international interest and the relative ease of travel to Dubai for travellers from all over the world make this destination very appealing to investors. Rental yields here are estimated as high as 15%, which very much attracts buy-to-let investors.
5) The Geography and Climate Found in Dubai are Very Attractive to Investors, Holidaymakers and Expats
Dubai has incredible geographical diversity for a region that is so compact – about 4,000 square kilometres. The emirate is located on the Persian Gulf and enjoys a generous amount of coastline with pristine beaches. It is also noted for its Arabian Desert landscapes, lush nature parks and beautiful Western Hajar Mountain views. The climate here is beautiful no matter the season, with summers that are quite hot. The weather and geographic diversity combine to make Dubai a favourite holidaymaking, expatriating and retirement spot. This bodes very well with investor who are looking at buy-to-let and resale strategies in particular.
6) Ever Improving Recreational Opportunities Make Dubai Quite Appealing Among Property Investors
Dubai already has an incredible amount of natural appeal. From its beautiful Persian Gulf frontage, desert landscape and even lush green areas and mountains, this region is simply breathtaking and appealing to holidaymakers with a variety of interests. Even as beautiful as the landscapes are, Dubai is working hard to position itself as Europe’s playground. Under construction presently are such projects as Dubai World, the USD 11 billion Arabian Canal Project and the Dubai Cricket Stadium which will play host to tons of international games. The constant improvements and additions to Dubai’s recreational offerings make this region very appealing to holidaymakers, retirees and expats. In turn, investors find themselves very pleased with the potential that increasing appeal delivers in the form of increasing arrivals and increasing demand.
7) Reasonable Property Buy-In Prices Considering the Present Boom Make Dubai Appeal
As construction on new developments, entertainment venues and infrastructure booms in Dubai, the prices here are not the lowest in the world by a long shot. They are, however, considered quite reasonable in comparison with European holidaymaking and investment hotspots. It is still possible to buy off-plan in the GBP 70,000 range. Considering the potential for growth, many investors are finding the buy-in prices well worth the rewards.
8) Favourable Taxation, Attractive Exchanges Rates and Fairly Low Cost of Living Make Dubai Appealing
British citizens will find their money does spend well in Dubai, despite its incredible growth and popularity. The present exchange rate is about seven dirhams to a pound. This is very favourable for not only British investors, but also holidaymakers, expats and retirees especially when you consider the fact that Dubai is a no tax emirate. Whilst property in Dubai is not the cheapest in the world, the overall cost of living here is considered fairly competitive by most standards. The combination of the exchange rate and cost of living combine to draw holidaymakers and immigrants, which of course inspires investor interest in Dubai property investment.
9) Expanding Mortgage Opportunities are Inspiring Investor Confidence in Dubai
Whilst it is true getting a mortgage in Dubai used to be nearly impossible, the operative phrase is “used to be.” Investors in Dubai property will now find it is more than possible to secure financing from Barclays Bank and John Charcol independent mortgage specialists for example. John Charcol in fact, has entered into an exclusive deal with the National Bank of Dubai to offer mortgages that are set up in dirhams, but processed in accordance with British regulations. The opening up of mortgage possibilities in Dubai is very much inspiring property investor confidence.
10) Dubai’s Welcoming People are Inspiring Real Estate Investor Confidence and Attracting Plenty of Holidaymakers, Expats and Retirees
Dubai’s 1.3 million people are noted for being incredibly welcoming to expats, retirees and holidaymakers - visitors and immigrants here report feeling right at home with very few exceptions. The welcoming climate and Dubai’s willingness to ensure that holidaymakers and expats both have plenty of activities to remind them of home bodes well for the atmosphere created. As more people move to Dubai and soak up its hospitality, investors are very much encouraged.
With its booming population, growing economy and very promising property market, Dubai is considered by many to be an investor’s paradise. As the potential here continues to grow, expatriates, retirees, holidaymakers and investors are all taking notice.
