Investing in Dubai Properties – A Wise Choice or Not?
Have you ever thought of investing in a Dubai property in order to receive a rental return?
Dubai is the second richest emirate after Abu Dhabi renowned for its gigantic projects and ambitious life. Dubai offers a lifestyle far superior to other major cities attracting every year more and more people around the world including workers and curious tourists.
This year Dubai expects nearly 10 million tourists (40% increase compared to 2009). And today the emirate has over 2 million inhabitants made up of 150 different nationalities; over 65% of residents are foreigners who have come to Dubai for work usually for a limited duration. Considering the statistics, it is no doubt creating an attractive impact on business potential in Dubai local market. As far as the behavior of tourists is concerned, they prefer to rent a villa in Dubai for their holidays for ease, tranquility and luxury. On the other hand, the temporary residents of Dubai whose primary motive is to employ or get employed prefer Dubai properties which includes apartments and fairly cheap home in Dubai.
Dubai as a whole is being developed considerably with the provision of facilities and the subway linking of all the key points of the city. However, we note a particular interest in some quarters. One of them is Dubai Marina which offers an exceptional living environment with direct access to the sea offering beautiful apartments with a sea view generally appreciated by young couples and expatriates. Downtown Burj is also one of the most popular areas of Dubai offering nice apartments in downtown Dubai, near Business Bay and Dubai Mall.
Simulation of a rental investment
Yearly rental fee: 95 000Aed (€ 19,792)
Security deposit: 4750 AED (5% of annual rental)
Asking price: 1,000,000 AED (€ 208,333)
Note: 1 € = 4.8 AED (during August 2010)
Gross return: 10.02%
Annual charges for condominiums: 19.47 AED / sq ft: 22 215aed (4628 €)
Profitability Net: 8.2%
“An unparalleled freedom of maneuver”
Besides the reasons given above on increasing demand and need for rental properties, ownership of home in Dubai is simple and profitable. A recent law allows non-residents to access the property which lets everyone to become the Dubai properties owner. Another advantage is the freedom of major fees and taxes as compare to free ports in other countries. The property purchased is not subjected to taxation. Also, payment deadlines for the prospective tenant are different from that known in western countries. In Dubai, the payment is made on maturities ranging from one to four times a year. These tax benefits and legal have been made in order to boost the ownership of home in Dubai property market.
Investment in Villa in Dubai looks simple watching the real estate consulting firms based in Dubai since 2004 including the issue of housing investment to meet demand increasingly strong. With a broad portfolio of Dubai properties (Apartments and Villa in Dubai) in the most dynamic neighborhoods, Dubai Investment is able to offer the ideal property showing potential on different dimensions including: rental power, attractiveness of location, your affordable needs and budget. With its local market knowledge, you can negotiate the best price directly with the owner which also ensures affordability in pricing. It is also easier to get promotion of your property and any rental management of it at very competitive prices.
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