It is time for property investors to look further east as some of the cities considered hot to invest in property - Florida, Spain, Cyprus etc. are not so hot anymore. Dubai is undoubtedly the world's newest hottest city to invest in property.
Some investors may think that it is too difficult to invest in Dubai - this is not the case. This dynamic, rapidly growing, outward-looking city, which is often referred to as "The Fastest Growing City In the World", "The Land Of Opportunities" , "The Fastest Growing Tourist Destination In The World" and "The Hippest City In The World", is catching the attention of global investors.
Whether your objective is to earn a high ROI by flipping, or buying a second home or holiday home in this tax-free city, or buying a property to rent, or buying a property to resell, the key is to take quick decisions, as prices are climbing, and to avail of the good property investment opportunities, you have to act fast.
Dubai is one of seven emirates that make up the federation of the United Arab Emirates, and is known around the world as a destination that features world-class hospitality, landmarks of design and luxury, and a business infrastructure that attracts major global organisations.
Dubai is the ideal place to call home. Whether it's families looking for a feeling of warmth and community, urbanites seeking a cosmpopolitan, thriving city or those who desire the very best in waterfront property surrounded by golf courses, unique activities and an unparalleled lifestyle, Dubai is home to uncompromised modern living and exceptional investment opportunity.
Three years ago, Dubai started permitting expatriates from all over the world to purchase freehold property in Dubai in select community development projects. Since then, the freehold property market in Dubai has exploded as investors from all over the world see the fantastic opportunity to purchase properties at low prices, and resell as the prices appreciate rapidly.
Dubai is regarded as one of the fastest developing infrastrucures in the world, and some of the projects are visionary and breath-taking. Dubai is being recognised as the city of the future, and investors are rushing to grab a piece of the action. Currently demand exceeds supply, thereby pushing up prices and speculators and short-term wholesale investors earn handsome returns (25% - 100%) within a few months.
The key for the larger investors is to get in early before sales of project have been officially launched, purchase at wholesale prices and resell at retail prices. Annulaised returns on investment of 40% to 70% could be obtained this way.
Smaller investors that do not have the capital and the purchasing power to purchase at wholesale prices, tend to purchase fewer number of units either at a higher pre-launch price (if the developer permits), or at launch prices if available, or by paying a msall premium to the large wholesale investors, and then resell when the value of the property increases or hold on until completion and then sell or rent. Smart end-users also purchase property at launch prices if available and provided they take a quick decision, and others are compelled to purchase at a premium.
Factors which contribute to the increased demand and prices of Dubai property are as follows:
- More and more investors are investing in this lucrative market
- Increasing costs and shortage of construction material, so invariably newer projects are priced higher.
- Due to large demand, contracting companies are increasing their prices
- Dubai is a tax free city, with zero income tax and capital gains tax, so many rich individuals and organisations are channeling their funds to invest in freehold property in Dubai.
- Dubai is strategically located close to populated countries - India, Pakistan, Iran, Iraq, CIS, and the African continent. Many individuals from these countries have started purchasing freehold property in Dubai, as they will be eligible for UAE residence visas on posession of the property. This number is likely to go up in the future.
- Dubai is an extremely safe place to live. This is one of the few cities where you can walk alone at night without the fear of being attacked.
- Mortgages are available on only a few development projects. It is anticipated that mortgage companies would open up in the near future, and would provide mortgage to a lot more projects. When this happens UAE expatriate residents would start purchasing as thehousing rents are skyrocketing (increasing 8 - 15% every year)
- The population of Dubai is expected to increase from 1.2 million to 2 million by 2010
- Companies are setting up offices in Dubai, or expanding their current offices as this forms the hub for the Middle East, Africa, and Indian subcontinent, that addresses an economy of over USD 3 trillion.
- Dubai is one of the fastest growing tourism destinations in the world and the number of annual tourists is expected to reach 15 million by 2010, from 5.5 million in 2006.
- Dubai is developing some ambituous, prestiguous and breath-taking projects - the tallest building in the world, the world's largest theme, tourism & leisure park, the world's largest shopping mall, an indoor ski dome, the world's most luxurious 7 star hotel, the world's first underwater hotel, some of the world's largest man-man made islands etc.
Who is Buying and Investing In Dubai Property?
Individuals and organisations from all over the world are rushing to invest in properties in Dubai, and achieve high returns and yields on their investments.
Properties Available In Dubai For Purchase By Global Investors
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Dubailand – commercial and residential towers, residential villas
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TECOM (The Electronic, Commerce & Media) freezone - commercial and residential towers
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The Palm, Jebel Ali - residential apartments and villas
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The World – own your own island (300 islands)
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The Greens – residential apartments around a common courtyard
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Burj Dubai - offices and residences in the tallest building in the world
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Properties are also available for purchase by foreigners in Ajman, Umm Al Qwain and Ras Al Khaimah.
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