Buying overseas property is not always for the fainthearted but we think Dubai is an exception to this. Here are eleven reasons to buy in Dubai:
1. Property prices look cheap by International standards, and rental yields are still high in Dubai.
2. Rental Market: Long-term residents of U.A.E. are considering buying to replace rental payments and to take advantage of the ever increasing market demand for property in Dubai.
3. Future Development: There is a big change in the city’s geography underway with huge plans for the future. What is the fringe of Dubai today, the Dubai Marina, will be uptown Dubai of tomorrow. Thus property values will follow this curve upwards, as people relocate to the new “Centre”.
4. Good Prices: Comparatively property is cheap compared to other major cities in the World. Dubai villas cost around $1,000 per square metre. London on the other hand are selling apartments in London Docklands area at $5,000 per square metre an amazing difference.
5. Prime Locations: Oversupply is the main fear highlighted by skeptics. But there can only be so many properties in prime locations and the time to buy them is now. Most projects are now fetching three times their original price.
6. Freehold Laws: Legally, there is no law to prevent freehold purchase in Dubai, and a new federal law should shortly frame legal rights into a form acceptable to international banks for mortgages this will push demand and prices up even higher than they are now.
7. Demand for freehold property in Dubai is much higher than most people can comprehend and understand. Certainly an economy growing at 10% plus a year has a dynamic effect of its own that reflects a huge demand for accommodation.
8. Sound Market: Any property market is going to have its ups and downs, and Dubai will be no different. All the same, Dubai has a habit of frustrating those who wait for bargains. In 1998 some thought rental prices would collapse. It did not happen they are still on the up as is Abu Dhabi.
9. Dubai wants you: Dubai is in the process of creating an international property market from scratch. As a result overseas property buyers are being given an exceptionally good deal to encourage them to be the pioneers of this market with very low deposits.
10. Resale Market: As the second-hand market emerges and the legal position of owners becomes absolutely clear, the element of risk will go, and lower risk will mean higher property prices.
11. Economic Growth: Dubai is a city where a lot of people earn high tax-free salaries and are in a position to support higher house prices. This is a city with a 20-year track record of strong economic growth and will continue to attract foreign and regional inward investment for many years to come.