Property in Dubai

Covers the recent history of Dubai and how it's affected the local real estate industry. Also includes Dubai property market statistics and predictions.

Property in Dubai has been available for purchase by foreign investors since 2002. The second-largest emirate in The United Arab Emirates, Dubai is hoping to attract more tourists and investors to their country by becoming friendly and open to outsiders. It is attempting to become a city of the future, which is a progressive attitude for a Middle Eastern region and one that is paying off for the area by attracting more and more real estate buyers each year.

There are many advantages to buying property in Dubai. For instance, in an effort to bring more investors into the region, the cost is very affordable and competitive. Mortgage loans average between 6-9% and many local banks are willing to underbid their competitors offers. It is best to go to several local lenders before settling on a rate. The terms are usually for 15 years and most loans are quite flexible. Europeans and Americans will probably get a better mortgage loan in Dubai than in their own country.

The buying process is also very simple when purchasing property in Dubai. There are no legal or notary fees to pay and no national registration to be made by the buyer. The forms are minimal when compared to other countries are there are few extra taxes and fees that end up on the final bill. Very minimal involvement from the investors lawyer will be required, if any at all. This will be refreshing to foreign investors who are used to such things when making a real estate purchase.

Amazingly, property in Dubai has been appreciating up 25% each year for the past several years. Rental returns have seen a comparable growth, making property in Dubai a great opportunity for landlords. Although nothing that good lasts forever, buying now will mean a big return for an investment. Analysts expect this capitol growth to continue for property in Dubai for many years to come. However, prices will continue to appreciate, as well as value, so many investors are acting now.

There are many kinds of property to buy in Dubai. Smaller investors may wish to buy an apartment or house, while larger investors may seek a hotel or apartment building. Whether big or small, there are many local real estate agents that are willing to assist foreign investors. However, one should be careful to only deal with a reputable company, as good business opportunities often attract unscrupulous people to take advantage of the situation.

There holds a lot of promise for Dubai in the future. Tourism and the area population are expected to triple in the next several years. This means that property for sale in Dubai will also be worth much more down the road. Making Dubai property open to foreign investors has brought more than just great real estate opportunities to buyers. It has brought a rebirth to this ancient and tattered land and the 21st century to a people that so greatly needed it. With commercial growth will come modern amenities and scientific advances, which is greatly needed in many parts of the Arabic world.

Written by Amy Cottrell for

Sunday 23rd July 2006

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