In 2015, the Forbes magazine ranked Dubai as the second hottest property market in the world, after Honk Kong. Due to the drastic increase in home buying interest in 2016, Dubai is more than likely to overtake Hong Kong in this global ranking. This article briefly explores property market in Dubai and ways of capitalizing on the same.
Dubai Property Market in the Past and Today
Just over 3 years ago, Dubai property market was at a minimum low with a drastic fall in house prices. Between 2002 and 2008 there was witnessed an increase in property prices in Dubai. Various projects were initiated during this period including the Jumeirah Garden City, Dubailand, The Lagoons, Palm Jumeirah and the World, estimated to have cost 212 billion US Dollars. Consequently, Dubai was recorded as one of the fastest growing cities in the world.
However, Dubai could not evade the global credit crunch. Mortgage institutions ceased to lend and almost half of the construction projects worth 582 billion US Dollars were either cancelled or put on hold. Foreign investors disappeared from Dubai, perhaps signifying the harsh reality that was the credit crunch. The market conditions stiffened, stipulating the beginning of hard times in the property market in Dubai.
Fast forward to November 2014, the housing market recovered fast with the residential price index surging by 18.89%. During that period, the sale prices of apartments rose to 11.6% while the sale prices of villa surged to 23.7%. There was evidently high demand for prime real estate in Dubai. The first three months of 2013 has seen the rise of property prices to 6.2%.
What should be your investment strategy while buying apartment, villa or land in Dubai?
Before purchasing an apartment, villa or land in Dubai, various key strategies should be taken into account. First, one must have valid reasons for buying property and must realize that the insurgence of property investment may lead to a property bubble. Secondly, an anticipating property buyer should know that DubaiCity is divided into two main areas, namely Bur Dubai and Deira. Residential development is more concentrated in the western side of the city where there is easy access to the city center and beaches.
Further, the investment strategy should include a good choice of apartment, villa or land. Dubai has embraced the latest technology in construction of homes, with developers coming up with new and luxurious structures. In purchasing the apartment, villa or land a buyer should ensure that Ownership of Property laws are strictly adhered to. By law, a foreign buyer, for example, is restricted to buying property in certain designated areas. A buyer should also understand that Dubai property laws allow for both freehold and leasehold property ownership. In purchasing the property, one can obtain a mortgage.
In Dubai, property taxation is non existent. However, for foreign residents such taxes as Inland Revenue, Capital Gains Tax and Inheritance Tax exist.
Potential property buyers can visit classified website like oforo.com that can assist them in locating property in Dubai. Oforo.com is a free source of finding property in Dubai.
The property market in Dubai is fast gaining interest from all parts of the world. The favorable property laws and the geographical location of Dubai make it an easy destination for any potential property investor to capitalize in.
This article is posted by Mr. Chitrang Vyas.