In 2002 Dubai made modifications to its constitution and passed the freehold law that allows for the freehold ownership of real estate in Dubai by any foreigner. And ever since then Dubai has become an international hotspot for property and the demand for real estate has exceeded the supply. Having said that there is doubt that at present Dubai is probably the safest bet for making overseas property investments.
Dubai has always been known for extraordinary architectural developments and breathtaking designs, and one such example of architectural intelligence is world’s only 7-star hotel situated in Dubai. Demand for property in Dubai is so intense that property prices have seen considerable appreciation in the last two or three years.
Why the Real Estate Market in Dubai is heating up?
You must be wondering what caused this sudden rush for property investments in Dubai. The main reason behind this sudden increase in demand for real estate in Dubai is the fact that property laws in Dubai allow freehold ownership of land by any foreigner. Property owners can sell or rent out the property whenever they want. Ownership of freehold property also entitles the owner to a 3 year renewable residence visa. But this law applies to only a certain designated areas in Dubai. And the other big reason for this surge in real estate market in Dubai is the fact that no taxes are applied on income or property transactions in Dubai.
The other reason that can be seen as the driving force behind the real estate market in Dubai is the presence of a huge number of multinational companies. And these multinational companies have created a lot of jobs in Dubai; therefore the people working with these MNCs are either opting for rented accommodation or buying their own houses. This has considerably increased the demand for both the rented and owned property and which in turn has increased both the property prices and monthly rentals. Also property investment in Dubai is very simple and requires minimal paperwork, and sales agreement is all that you need to buy property in Dubai.
One of the most popular property developments in Dubai is Damac Heights; the 90-storey splendor designed by top designer house ‘Aedas’. Overlooking the Palm Jumeirah, this 8th man-made wonder offers the most exclusive penthouses, duplexes, 3, 2 and 1 bedroom apartments in the world.
Damac Properties are the largest private master developers in the Middle East offering the most exclusive Dubai Real Estate, Dubai Freehold Property and Dubai Investment Property for sale.
When buying a property, you should always undertake due diligence so you completely understand the whole process. It is advisable that you seek advice from local experts such as a solicitor, real estate agent etc. Do not assume that any transaction you enter into will work the same way as one you entered into in your original country of residence. Read everything very carefully and never sign anything unless you are certain that you completely understand it.
There are a number of rules and regulations surrounding the purchase of property by foreign residents. Property can be purchased by a foreign individual or company so again take advice as owning property via a company may be more tax efficient. Whilst there are no taxes on property in Dubai, your original country of residence may impose taxes such as inheritance tax on worldwide assets in the event of death.
Recent changes in the law have allowed foreign residents to own the freehold of certain properties in certain areas of Dubai. This is the most attractive form of property ownership as it allows you complete freedom and control over the property. But it does not yet apply to all property transactions.
Other forms of ownership are available such as 99 year leasehold - you own the property for a period of 99 years after which it returns to the freeholder.
Despite the fact that you do not own the freehold to the property, you may be responsible for maintenance and upkeep so be sure to know the approximate costs of these expenses. The lease may also have conditions on what you are allowed to do with the property with regards to decor, extensions and renovations.
The Sharia laws in the Emirates may result in the property not passing to your wife should you predecease her. There are ways around this, but given it is a very complex area, seek the advice of a local expert.
When purchasing a property, you need to ensure you are buying from the actual owner. It is the title certificate which proves ownership in Dubai - no other contract or purchase agreement is sufficient proof. It goes without saying that the title certificate should be checked against the records of the Land Department to ensure you are not looking at a forged document. You are allowed to inspect the property register provided you can prove you have a genuine reason for doing so. In addition you can request a certified copy of the property register relevant to your potential purchase.
Mortgages are becoming more freely available to foreign residents. The usual term of the loan is 15 years and the interest rate tends to be linked to the US rates. You should shop around before making a commitment on a mortgage as terms and rates do vary. Again seek advice from a reputable advisor. It is worthwhile speaking to various members of the expat community to seek a personal recommendation for someone who assisted them in their property transaction.
A property purchase in any country is a huge financial commitment. Take time to do it properly so you can enjoy your new home.
Located on the southern coast of Persian or Arabian Gulf, Dubai is the 2nd largest of the seven emirates that constitute United Arab Emirates. Dubai has a population of 1.35 million inhabitants of which majority consist of expatriates. Dubai has the biggest population among other cities of UAE. Major parts of Dubai consist of rolling sand dunes. During the last few decades, Dubai has experienced a hasty development in every field of life. Twenty years back and you would find Dubai, a city inhabited by itinerant Bedouin roving across with their flocks and herds. Today, Dubai has become one of the most modern cities in the world. With the continued boom in industry sectors such as tourism industry and Dubai Property industry, Dubai has fast become the center of attraction for millions of people and businessman around the globe.
To some extent, Dubai is little different from rest of six Emirates of UAE. Unlike other Emirates, revenues from oil products contribute only 6% of the Gross Domestic Products of Dubai. The major contributors in its GDP are the tourism sector and the real estate sector. Later has gain a significant importance in the economical growth of Dubai. Today Dubai proudly holds some of the tallest skyscrapers in the world.
With nonpareil facilities and lifestyle on offer in Dubai, many people are planning to make Dubai as their second home. Some are even planning to relocate their. This has resulted in an increase in the property demand in Dubai. The increase in the demand of Dubai property for sale has forced the hike in price for properties in Dubai. With the announcement of new laws for property in Dubai, Dubai has able to magnetize many property investors around the globe. According to AME Info (leading press release website about Middle East), a massive investment of USD 4 billion has been committed in the Dubai property market since the passing of new laws for property in Dubai.
Dubai Investment Fund has planned to broaden the horizons of property investment across the following three branches of Dubai property market.
1- Commercial Property in Dubai
2- Industrial Property in Dubai
3- Residential Property in Dubai
DIF has aimed about 15 to 20% annual growth in the investment funds for Dubai property sector. One of the major developments in Dubai real estate market has been the announcement of new Dubai Freehold Property Zones. Expatriates can own in these zones either on permanent basis or on the basis of 99 years lease. This factor has significantly intensified the Dubai property market. All of a sudden, Dubai property market converted from an average local market into a full of activity international market. With matchless lifestyle Dubai has now become the heaven for millions of people in quest of a trendy and out of this world lifestyle.
The Dubai property prices have shown a significant upward trend during the last few years. Dubai property market has seen a 40% increase in the rental price against the property for rent in Dubai during the first six months of 2005. The price of property for sale in Dubai has also seen an increase between 20 to 50% during 2006. According to many real estate experts, this is the best time to invest in Dubai property market as prices are set to see more heights during the upcoming years with ever increasing property demands. Many investors are turning to invest in Dubai property market to take home their share of benefits that Dubai property market has on offer for its investors. There is a lot of profit on offer in Dubai property market if you can play your cards well. All one needs is the careful survey of Dubai property market.
Dubai is certainly a dynamic property market. Villas and townhouses are sold within a very short period of time. Developers offer rebates to investors who invest heavily and if you buy an entire floor of a building, chances are there that you will be offered discounts that will position you to achieve windfall capital gains over a period of time.
However, there are some regulations; especially if you are a non resident. The first and foremost is that you must have resident visa to buy property in Dubai. But those who have the resident visa with themselves or are the residents of Emirates, are sitting on a stack of opportunities.
With its ever-flourishing economy and increasing headcount, residential properties in Dubai enjoy astonishing volume of demand. According to the estimates of Emaar, a Dubai-based developer, there are about 20 residential projects that are open for sale in Dubai, currently.
Most of the property projects are located within the radius of 20 kms of the central business district where the Sheikh Zayed Highway runs alongside the emerging Burj Dubai district. Projects near the location of ‘Dubai International Financial City’ are the most sought-after ones that have the potential to deliver returns to the tune of 50-200 per cent in the next three years.
For investors looking for regular income in the form of monthly rental, furnished apartments offer superior rate of return on investment. Unfurnished properties in Dubai, on the other hand, are preferred by mostly the non residents who move into the city just recently.
For more details on Dubai Real Estate log on to magicbricks.com
Uncategorized | admin | 
March 25, 2009 12:38 pm | 
Comments (0) 
Subscribe