Property Select

• Home
• Property Search
• News
• About Us
• Contact

PROPERTY IN DUBAI AND WHAT IT ENTAILS FOR INVESTORS

Thursday, 31 Jul 2008

The emirate is fast becoming an important financial centre and a tourist haven - as it undergoes rapid expansion and continuing government-controlled tourist and business development.

Investors into Dubai's property market are likely to be more than happy with the returns they achieve - and demand for property and tourist growth should only make their investment more secure and profitable over the coming years, one expert has said.

Property authorities in Dubai are planning introduce long rental contracts between landlords and tenants, as they look to soften rapid rent price inflation in the emirate.

Dubai, as a property investment destination is poised to be a top choice property for a while yet, according to research from overseas investment portal Homesgofast.com.

With the average cost of a property in Dubai still remaining reasonable, it is of no wonder why Dubai was voted the top investment hotspot for January 2008 - with many clients coming from the British Asian community - despite the region witnessing a development slowdown as new laws take effect.

Enquiries to the website from over 170,000 visitors in January 2008 give an early indication that Dubai is one of the most sought-after locations, according to the company.

This is a positive reflection, as one can see that the property sector in Dubai is progressively growing, and has maintained profitable margins whilst continually providing lucrative opportunities for keen property investors.

Rent prices have been subject to rapid inflation in recent years, as demand for rental properties continues to outstrip demand, despite the high level of development in the emirate.

Landlords are subject to a seven per cent cap on rental rises, although this no longer exists when the tenant changes - so property owners are free to up rent prices as soon as they get a new tenant in.

Because of this, studios and apartments in popular complexes can make excellent investments, commanding high rental yields and strong prospects for future growth, according to Giulio Giancovich, a senior Dubai consultant at The Best in Dubai.

"Purchasing a unit in one of the luxury new residences such as Lago Vista or Ocean Heights can net you up to 18 per cent rental yields per year," he comments.

"With up to 51 per cent tax free growth and an expected 15 million tourists by 2010, the buy-to-let market is a very attractive prospect for property owners," he adds.

Property Select offers a comprehensive selection of overseas property in Dubai, news, members club and reviews of the latest property developments.