Dubai Property

Why are more and more international real estate investors being drawn to the Dubai property market and what does the market offer anyone interested in moving to Dubai or profiting from its real estate?

Shelter Offshore have produced a list of thirteen of the most interesting and pertinent factors about the Dubai property market to give you a fair understanding of why the market is attractive and also exactly how attractive it really is.

1) Despite the attractive growth the real estate market in Dubai has enjoyed in the last two years, Dubai property remain highly competitively priced and also more affordable than similar property in the UK, US and parts of Europe where the markets are at all time highs and are seen by many as unaffordable and now non-returning.

2) If you buy an apartment or house in Dubai to let out for an income, you will not be charged income tax on the rental income you receive in Dubai.

3) If you wish to profit from your property or just move on, you can sell the property and Dubai will not charge you capital gains tax on your profits.

4) Unlike elsewhere in the world you pay no stamp duty on Dubai property.

5) Furthermore, when buying most freehold property you are not subject to legal fees and survey fees making the entire process highly affordable with no hidden taxes and charges.

6) The only charge of any significance that you have to factor in is the 1.5% land registration fee which is payable upon completion.

7) International property analysts universally agree that there is huge potential for growth in the brand new real estate market in Dubai for at least the next two years.

8) The demand for rental property in Dubai is increasing strongly and steadily due to the increase in residents arriving yearly.  Over 400,000 new residents arrived in Dubai last year alone and this means that demand for rental accommodation is far outstripping the supply which results in high rental yields achievable.  Current rental yields average 8 - 10% per annum with these figures set to remain if not increase, and rental increases in some areas have been known to top between 25 and 35%.

9) Capital growth has reached soaring levels particularly in the last year alone and is expected to level out at 15% per annum for at least the medium term.

10) Many developers sponsor their purchasers; therefore if you buy from such a developer you will receive your residence visa.

11) The build quality, architectural standard and finish of all construction work in the Emirate are excellent with the attention to every detail world class.

12) Since 2002 when the crown prince changed the laws in Dubai foreigners now have the right to buy 100% freehold property.

13) Since 2002 property has risen at a rate of 25% per annum with the market only really heating up in 2004.  The market is expected to soar over the next two years in particular making now the right time to buy to benefit from the projected levels of property investment growth.