Some Reason For Properties Investment In Dubai

Dubai is a city in the United Arab Emirates that is built around the principles of free trade, foreign investment and good business practices. It was Sheikh Maktoum bin Hasher Al Maktoum of Dubai, who testified as a free port in 1901, the abolition of all rights. The property market in Dubai is setting standards for property development in the world and with progress, as a land of Dubai Sports City, The World and The Palm, Dubai's real estate market will remain the future of investment property abroad in the coming years.

Dubai was the first emirate of the UAE to get involved in Freehold Real Estate, at a time when UAE and GCC nationals were only permitted to own property in the United Arab Emirates. Buying real estate in the Emirates is slowly changing and becoming more available to expats.

In 2002, Sheikh Mohammed bin Rashid Al Maktoum of Dubai had a vision to create the city of the future. In doing this and creating a truly cosmopolitan and global society, an international community would be required, and so the Sheikh decided to allow foreign investors to purchase property on Dubai soil.

Dubai and the UAE's future is focused upon creating a business and tourism environment second to none which centres around incoming foreign investment from commercial institutions and individual investors.

Reason For Investment In Dubai

• Future Demand: Population is destined to increase from 1m to 3m whilst tourism will also triple from 6m to 15m, by 2010
• Future Supply: All master-planning is Government controlled to carefully manage the demand-supply ratio thus maintain strong growth & returns
• Capital Gains Tax: 0%
• Rental Income Tax: 0%
• Legal & Notary Fees: None required, although legal advice is recommended
• Land Registration Tax: 1.5% (this is paid to the Government on completion)
• Transfer Fee: 1-7% (this is paid to developer on resale of contract before completion)
• Buying Process: Simple. No Company formation is nor National registration required
• Payment Structure: Following an initial reservation deposit, a deferred payment structure is usually provided by the developer with payments spread over the construction period
• Finance: This is available to non-UAE residents only on certain projects, with competitive interest rates from 6 - 9%, and usually with 15 yr terms and reasonable conditions
• Capital Appreciation: Recent years have risen between 15 - 25% annually
• Rental returns: Recent years have returned between 10 - 20% annually
• Freehold: The right to obtain freehold rights on your property is provided with most non-UAE purchases of property. See below.
• Residency: Resident visas are supplied with non-UAE purchase on property

Dubai has seen a remarkable growth in property. Previously, only native citizens were allowed to own property in Dubai, but now anyone can purchase property in Dubai.

The reason for this change is that the government wished to diversify from an oil-dependent economy to a service and tourism oriented economy. This has made property in Dubai more valuable and brought about a property boom.