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Dubai property - Americans in Dubai |
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As well as the increase in american corporations setting up continental headquarters in Dubai more and more average Americans are now buying property in Dubai according to recent reports. So what are the attractions for investors who might be considering property in Dubai?
The original reasons for investment in Dubai are still strong. Until recently Dubai was a secret of the superwealthy and the majority of investors came from western Europe. This was probably simply a reflection of the fact that Dubai and America does not share working timezones but now an increasing number of Americans are investing in Dubai property.
Tax free
Dubai is a tax free Emirate which means there are no taxes of any kind. This means no taxes on investments, capital gains or income. Becoming more tax efficient should be at the heart of any intelligent investment strategy
Property is cheap
Compared to the rest of the world property is cheaper allowing investment in higher profile locations
Foreign ownership
100% freehold foreign ownership of property is allowed in various freehold zones across Dubai. There are also a number of leasehold areas which offer leases from 99yrs. The Dubai Government are reviewing such areas to be converted to freehold on a case by case basis.
High Capital appreciation
Property prices have increased by a staggering amount over the past few years and growth is continuing steadily. Typically prices are rising by 20-40% however many investors have consistently seen appreciation of 60% per annum on their investments.
Rental rates
Rental yields for Dubai property are also much higher than the rest of the world. Typically in the UK rental yields are around 5% whereas in Dubai rental yields on long term residential rentals are around 12-15%
Tourism
The Dubai government has made an active drive to diversify the economy. The Dubai government does not want to depend on its oil reserves which are largely believed to become exhausted by 2010 and, as such, has diversified its economy to attract revenues in the form of expanding commercial and corporate activity. Tourism is also being promoted at a staggering rate with the construction of DubaiLand and other projects that include the making of mammoth shopping malls, theme parks, resorts, stadiums and various other tourist attractions. Tourism has been increasing by 15% per annum for the last 5 years.
Holiday market rates
Rental rates to short term holiday market can easily achieve rates of 18-20% with many investors earning up to 25% per annum on their investments.
Zero crime rate
Dubai is practically crime free making it one of the safest places in the world
Tipped for the Olympics
Due to the specialised sports zone of Dubai Sports City in Dubailand, Dubai has already been tipped for the 2016 Olympics, further increasing its worldwide profile and property value
Largest theme park in the world
DubaiLand is set to become the largest theme park in the world. Built on 3 billion sq ft site it will include 45 mega projects and 200 sub projects. It will be twice the size of Walt Disney World Resort. The development is expected to be a full featured city divided into six theme worlds and expected to attract 15 million tourists to Dubai by 2010.
Emirate Ventures helps international buyers purchase property in Dubai. Many Americans have trusted us to ensure their dollars are placed in the best investments Dubai has to offer. |
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Last Updated ( Monday, 11 February 2008 )
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