Dubai holds a strong position in the international real estate industry
The government's decision to diversify from a trade-based but oil-reliant economy to one that is service and tourism oriented has made real estate more valuable, resulting in the property boom from 2004-2006. Another reason for the construction boom is the recent reversal of a law in 2002 that allows non-nationals of the UAE to own property (not land) in Dubai (albeit freehold and 99 year leases are actually sold to people with ownership still remaining with private companies). The first villa freehold properties that were occupied by non-UAE nationals were The Meadows, The Springs, and The Lakes (high-end neighbor hoods designed by Emaar Properties, collectively called Emirates Hills). Expatriates of various nationalities have been pouring capital into Dubai in the past several years, greatly contributing to the city's prosperity.
Construction on a large scale has turned Dubai into one of the fastest growing cities in the world. Rents have skyrocketed with the recent inflow of professionals and companies from around the world who are attracted by Dubai's no-tax benefits although rises have been capped to 15% per annum up to 2006 under a directive from Sheikh Mohammad.
The aspirations of the ruling sheikh are reflected by the ultra-modern architecture of the city; home to iconic skyscrapers such as Emirates Towers, which are the 12th and 24th tallest buildings in the world, and the Burj al-Arab located on its very own island in the Persian Gulf and currently the tallest hotel in the world.
More reasons to invest in Dubai:
- Properties in Dubai are all finished to a very high standard
- Dubai property prices are low compared with other developed countries
- There is no income tax or capital gains tax applicable on property sales or rentals in Dubai
- There is no stamp duty, legal fees on freehold property in Dubai - apart from a 1.5% land registry fee on completion
- The purchaser of property in Dubai is entitled to a Residence Visa
- Rental income from Dubai properties is presently between 8 – 10 % per annum
- Capital growth on Dubai property is expected to be in excess of 15% per annum
- Mortgages are available in Dubai to foreigners to purchase Dubai real estate
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