Population Growth

Dubai is becoming a services hub and in particular a financial services hub, there is going to be an increase in the number of foreign professionals who are flocking there to work and with a high pay and tax free status.

Good Relative Property Value

The cost of Dubai property relative to international standards is still very low and as a result the chance of a large capital appreciation increase is very high. Coupled with the bullish take on rentals as mentioned above, the prices of your real estate investment in Dubai will be set to soar in the next few years.

Hybrid Assets

Property is a kind of hybrid asset with the capital appreciation of a stock but the income producing capacity of a bond.

High Yields

Dubai offers higher than average rental yields to the long-term investor. Whereas overseas, property owners average around a 4% yield on their investments, in Dubai one can expect a minimum of 7%. This value is even greater for commercial property where yields of 15% are expected. Currently the single-room studio apartments are doing the best in terms of rental yields since the expatriates that work in Dubai tend to be single individuals so this would be a great real estate investment tip to note if you intend to invest in Dubai.

Tourism Growth and Location

6 million visitors currently visit Dubai and this number is expected to rise to 15 million by 2012 providing excellent rental potential. Dubai World Central International Airport is a new $33 billion planned facility that will have six runways and a passenger capacity of over 120 million passengers a year, making it the largest airport in the world. Emirates Airline has plans to double its fleet, and aims to overtake British Airways to become the world’s largest long-haul carrier by the year 2012. Dubai now has more leading hotels than any other destination providing unparalleled luxury for tourists.

Prospective investors must carefully research the property they’re interested in, and learn everything about the local market, its trends, and investment returns on properties similar in price and quality to gauge the profit potential of the property in question. At Blue Water Real Estate, we use our expertise on the market to guide you in the right direction for your investment. As investors in the UAE market ourselves, we think like you do. Different types of investment properties are suited to investors with different goals for their investments and the amount of time and energy they wish to devote to the properties. The length of time the investors wants to hold the property is an essential variable to consider, as both options yield great potential for profit with varied amounts of time and effort devoted to maintaining the properties in question. Investors also must choose between commercial or residential investment and carefully research the sub-categories within these two general investment options. Although learning all about the real estate market to invest with knowledge is the most important aspect to achieve success in the real estate investment market, acting quickly is also essential. Buying before the competition is essential to getting the best deals and selling quickly is just as important. Joining with a respected, experienced brokerage allows a novice investor to purchase expertise that can help make the most profitable investments as quickly as possible while the market is still hot. Investing in Dubai real estate is the best when it comes to location, tax efficiencies, leisure, quality of life, leadership, and the vision of Dubai’s future. If you wish, it’s a future you could be a part of.

Other important things to know:

Transfer fees are what you have to pay when transferring ownership from one owner to another. These range from one to seven per cent, so it is always wise to enquire upfront about the transfer fee to avoid an unpleasant surprise later on.
Buyers normally also pay a two per cent commission to agents. This is not like most places where the seller pays the estate agent. In Dubai this is the traditional pattern for rental payments and has been extended to home sales.
Expect to put down a 5 to 15 percent deposit on residential property under construction, and pay careful attention to the payments schedule. Some are more generous than others, but it is usually possible to obtain mortgage finance that will also cover payments prior to occupation.
On secondary market sales a non-refundable deposit from Dhs20,000 to Dhs1 million is normally paid, on the condition that the owner agrees not to sell the property to somebody else, usually for a period of one month. A memorandum of understanding is also usually signed to secure the property.
Residency visas are not always available from the developer. If the home owner needs one be sure to check with the developer if one is provided. If a developer grants a visa to a homeowner, such visas do not allow individuals to work in Dubai. Separate arrangements to obtain work permits are available however.