Dubai Property Investment

International property is affordable if you look at it the right way. A villa in Dubai can cost about $1,000 per square foot as compared to the London Docklands, where you spend close to $5,000 per square meter. Not many modern cities have such amazing properties for such an affordable price. This is one of the great things about Dubai property investment. As for the rest, do read on below.
 
Foreign Property Ownership. Dubai is currently trying to recreate the international property market by allowing foreigners to own freehold Dubai real estate. In order to entice buyers to look at Dubai properties, it is offering amazing buy and sell deals that can't be beat.

Preventing Dubai Property Supply Shortage. In order to avoid a housing shortage, the Dubai Government is providing land for developers to encourage growth. There may be a large supply of homes in Dubai today but as the demand grows, the supply may be huge at all in a couple of years. The rate at which Dubai is growing is between 7% and 8% and it does not look like it is going to get any slower.

An Increase in Building Costs. The increasing costs of building materials and labor is driving up Dubai property investment prices. Also, the dropping value of the US dollar is increasing the price of materials from Europe, which increases energy prices as well.

Tax Free Income. In Dubai, individuals can earn a tax free salary in order to be able to afford the high cost of housing. That is in a city where they have had 20 years of a strong growing economy and an area that is bringing in more and more foreign investors and investments, which means it will keep growing.

An International Business Center. Dubai has been the trading hub in the Middle East for a very long time but now it is the center of international business and re-exportation. The rate at which the country of Dubai has grown in the last decade is amazing and Dubai is no longer dependent on the oil industry.

The increase in international business is increasing the diversification of the business center and making it more global. That means that there are a lot of opportunities for foreign investors. In fact, many very successful companies are relocating to Dubai.

The Tourism Industry. More than 3 million tourists came to Dubai in 2001 and it is thought that in the near future, more than 6 million tourists will be coming every year to see the sights in Dubai.

If you are planning on staying in Dubai for a long time, rent can really add up so you may want to engage in some Dubai property investment. If you acquire instead of rent, you can potentially save as much as 40% so you may want to purchase that luxury villa (or rent several apartments) after all.

You need a 10% deposit on a new villa, which is the same as rent for a year on a less desirable property. You can find Dubai property investment rental yields close to 10% in Dubai while in London they are closer to 5%. That is something to keep in mind.

The price of a Dubai property investment is growing close to 10% to 15% annually and more in some developments. It is thought that by 2009, if current rates of growth continue, you can potentially double your investment if you hold onto it long enough before considering a sale.

Keep in mind too that currently, the AED (Dirham) is fixed at the US dollar at a rate of AED 3.675 per $1. The strong value of the pound compared to the dollar indicates that investors who get in now are likely to see a 10% to 15% return on their Dubai property investment as compared to last year.