Why should I invest in Dubai?
1. Rents are very high
Against a background of stable to moderately rising house
prices in 2005 rental yields have taken a sharp upward movement.
This attracts investors into property, while pushing those
renting into buying in order to avoid future rent rises.
2. Prices are low
Compare Dubai to a prosperous UK city and you will find
that house prices are around one-third per square metre;
tax-free incomes in Dubai compare more than favorably with
UK post-tax income levels, and borrowing costs are similar;
this huge price differential clearly marks a market opportunity.
3. Mortgage costs are falling
Local and international banks and financial institutions
in the UAE are producing more mortgage options by the day,
and the net effect is to lower the cost of borrowing. If
it costs less to own a home in Dubai then this has to be
good for prices.
4. Demand high in key areas
The rapid expansion of Dubai as a business and trading
hub for the Middle East is bringing in more and more expatriates.
There is huge pressure on the existing housing stock; hence
the massive rental increases this year.
5. UAE economy continues to boom
Oil revenues are sky-high, economic reform is happening
fast, and Abu Dhabi will be next to invest hugely in its
domestic infrastructure; Dubai will be happy to supply and
contract to meet this ambition next door.
6. Dubai is becoming famous
No city in the world is presently more successful at marketing itself than Dubai. Foreign investors are already active buyers of local property
and may buy more. Dubai has advantages as a tax haven. These are only just being recognized.
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