Buying a Property in Dubai
Dubai is a very flourishing city, and its real estate business is currently entering a new era, where the most successful developers are those who are ready to adopt a longer term approach, and aligning their projects with the sectors which drive Dubai's economy - tourism, leisure and hospitality. New and forward-looking commercial real estate in Dubai has therefore developed massive potential which will be realized in the coming years, but such is the atmosphere in the city that there is still space for more investors.
The rapid pace of change in the region creates significant opportunities and poses challenges and complex decisions for investors. However, the returns are similarly high. The recent financial recession that rocked many major economic centres had no or very little impact on the commercial real estate in Dubai and this city is now continuing to flourish. The most searched for properties in Dubai on the internet are for offices, labour and warehouses, commercial plots, shops, shopping centers, hospitals and clinics. The city also has a tradition of undertaking vast development projects, which have included the construction of the world's tallest hotel. As for offices, the factors that determine the value of an office space include location, economics, demographics, and traffic flow. With the constant increase of rate of production and in-migration of labour capital, there has also been a strong rise in the need for labour houses. It is very clear that Dubai's commercial market will continue to remain the same in the coming years and buying, selling and renting of offices, labour houses or ware houses will be more profitable them ever before.
The last four years has seen an increased focus on residential development in the high end sectors, attracting the interest of short-term investors and secondary home purchasers. Now, however, the market has begun to saturate in the high-end and luxury sectors, and the business model is being consequently changed to a more mature outlook. There are a rising number of opportunities in the middle and low-income segments where the demand base is more secure. Even this is a highly competitive market though, and the factors critical to gaining success are focus on end-user conveniences and access to transportation infrastructure.
The last twelve years have therefore seen a massive rise in the development of apartment complexes, with most of the residential development currently happening west of the city. In 2002, a royal decree passed in the country allowed foreigners to buy freehold property in Dubai. New apartments and villas, often located in secure complexes with communal leisure facilities such as tennis courts, swimming pools and gyms, are constantly being built. Dubai is categorised a 'no tax' emirate and therefore buying of property is not restricted to the elite and moneyed class. Rent is very high in the city, so the purchase of properties here can also be done in view of having a source of earning.
The rapid pace of change in the region creates significant opportunities and poses challenges and complex decisions for investors. However, the returns are similarly high. The recent financial recession that rocked many major economic centres had no or very little impact on the commercial real estate in Dubai and this city is now continuing to flourish. The most searched for properties in Dubai on the internet are for offices, labour and warehouses, commercial plots, shops, shopping centers, hospitals and clinics. The city also has a tradition of undertaking vast development projects, which have included the construction of the world's tallest hotel. As for offices, the factors that determine the value of an office space include location, economics, demographics, and traffic flow. With the constant increase of rate of production and in-migration of labour capital, there has also been a strong rise in the need for labour houses. It is very clear that Dubai's commercial market will continue to remain the same in the coming years and buying, selling and renting of offices, labour houses or ware houses will be more profitable them ever before.
The last four years has seen an increased focus on residential development in the high end sectors, attracting the interest of short-term investors and secondary home purchasers. Now, however, the market has begun to saturate in the high-end and luxury sectors, and the business model is being consequently changed to a more mature outlook. There are a rising number of opportunities in the middle and low-income segments where the demand base is more secure. Even this is a highly competitive market though, and the factors critical to gaining success are focus on end-user conveniences and access to transportation infrastructure.
The last twelve years have therefore seen a massive rise in the development of apartment complexes, with most of the residential development currently happening west of the city. In 2002, a royal decree passed in the country allowed foreigners to buy freehold property in Dubai. New apartments and villas, often located in secure complexes with communal leisure facilities such as tennis courts, swimming pools and gyms, are constantly being built. Dubai is categorised a 'no tax' emirate and therefore buying of property is not restricted to the elite and moneyed class. Rent is very high in the city, so the purchase of properties here can also be done in view of having a source of earning.