The
Dubai Property Market
In
2002 Sheikh Mohammed bin Rashid Al Maktoum of Dubai
had a vision to create the city of the future. In
doing this and creating a truly cosmopolitan and
global society, an international community would
be required, and so the Sheikh decided to allow
foreign investors to purchase property on Dubai
soil.
Dubai
and the UAE's future is focused upon creating a
business and tourism environment second to none
which centres around incoming foreign investment
from commercial institutions and individual investors.
Why
Invest in Dubai?
-
Future
Demand: Population is destined to increase from
1m to 3m whilst tourism will also triple from
6m to 15m, by 2010
-
Future
Supply: All master-planning is Government controlled
to carefully manage the demand-supply ratio thus
maintain strong growth & returns
Capital Gains Tax: 0%
-
Rental
Income Tax: 0%
-
Legal
& Notary Fees: None required, although legal
advice is recommended
-
Land
Registration Tax: 1.5% (this is paid to the Government
on completion)
Transfer Fee: 1-7% (this is paid to developer
on resale of contract before completion)
-
Buying
Process: Simple. No Company formation is nor National
registration required
-
Payment
Structure: Following an initial reservation deposit,
a deferred payment structure is usually provided
by the developer with payments spread over the
construction period
-
Finance:
This is available to non-UAE residents only on
certain projects, with competitive interest rates
from 6 - 9%, and usually with 15 yr terms and
reasonable conditions
-
Capital
Appreciation: Recent years have risen between
15 - 25% annually
Rental returns: Recent years have returned between
10 - 20% annually
-
Freehold: The right to obtain freehold rights
on your property is provided with most non-UAE
purchases of property.
-
Residency:
Resident visas are supplied with non-UAE purchase
on property
Purchase
Procedure & Legal Costs
Purchasing
off-plan in Dubai is a relatively simple process
which does not require use of a lawyer, however
of course www.click4dubaiproperties.com does recommend you
do always take legal advice with any financial investment.
All property investment available to foreigners
in Dubai is within special zones master-planned
by governmental organizations, and as a result the
contract structures must be passed before the government
before they can ask customers to sign. There is
no capital gains tax or income tax within Dubai
itself.
Finance
Mortgages
in Dubai are not yet the developed and versatile
product we are gratefully accustomed to here in
the UK, and they are not available on all developments.
Each individual developer is required to negotiate
for finance to be provided on a per-development
basis. This situation is expected to change drastically
once Freehold Law is ratified (see below).
Lenders
(generally local banks, finance companies or HSBC
Dubai) conduct due diligence analyses on those developments
that have requested finance first, and due to the
large marketing budgets and extreme aggressiveness
of the market often these developments do sell out
even before finance is available.
When
finance is provided, such as with Al Hamra, the
loan will most likely have a maximum term of 15
yrs and be of repayment status only (no interest
only loans). Interest rates vary between 6% and
8% and as with the majority of overseas loans for
UK investors, an individual's net disposable income
is required to be roughly 3 x the figure for the
monthly mortgage repayment. Loans usually offered
range from between 50% to 75% LTV.
Our
Services :
www.click4dubaiproperties.com carefully selects property investment
opportunities from politically stable countries
that indicate excellent economic growth, have internationally
respected legal systems, stable currencies, attractive
tax policies and will provide strong investment
yield and growth.
