Clichéd as it may sound, it is not easy to attain a healthy and hearty balance between western influence and eastern tradition. Dubai, with an ethnic mix of 65% Asian, 18% UAE nationals, 13% Arab Expatriates, and 4% others, seems to have successfully managed this – something that many other Arab cities have failed to achieve. The city’s visionary development is proof positive of an open-minded outlook even though it has managed to stay culturally rooted in the Islamic traditions that deeply penetrate the Arab peninsula and beyond.
Dubai Surroundings
When it comes to jaw-dropingly vast new builds, this city with its driver-less metro trains just can’t help itself. Dubai has built the most spectacular and expensive skyscraper; funded and built record-breaking, man-made islands in the shapes of palms and whole planets; and constructed mammoth-sized theme parks including a replica of The Forbidden City.
Real estate in Dubai has been in the spotlight for sometime now. The last few years have seen an unprecedented growth in the number of investors in the United Arab Emirates especially targeting the cities of Dubai and Abu Dhabi. The property market has seen a large growth causing rents in these cities to sky-rocket. For many, this has been a good reason to look for an alternative in the form of buying and owning a property in UAE. Also, the UAE is very attractive from a tax perspective with no income tax or capital gains tax and the government is committed to retain the current tax structure for at least the next 50 years.
An increasing number of businessmen are moving their personal and business bases to Dubai, as it is tax friendly not only for individuals but also for corporates. It has good communication access being sited midway between Europe and Asia and offers a number of free trade zones within which overseas corporates can base their businesses.
Seasoned investors looking for business properties or second/third homes have been attracted to the area as a whole, especially because of the government providing tax incentives to promote market growth and foreign investment remains. The focus on the high-end is such that there is almost a lack of affordable housing in the region. However, since the demand for luxury apartments remains apparent and the developers continue to build. As a result, whilst profits are higher at the top end of the market there is little or no demand for the more affordable units just yet.
Dubai’s property market has proved to be a well rounded market, and is expected to show a steady growth in property price appreciation over the next few years. Benefits of purchasing a property include a resident visa which allows the owner to reside in Dubai with his family, (this does not include a work permit). This offer has proved most popular among Asian and Indian investors. For many investors once they have bought their property the next step is to ensure that they not only maximise their yield but importantly protect their investment. The rental market continues to attract investors with yields well over those that can be achieved from bank savings accounts.
Many of the overseas buyers purchase apartments or villas here in Dubai close to the coast, either for use as holiday homes or holiday lets. Contrary to popular belief Dubai’s economy is based on tourism and shopping, and not oil as thought by many. Tourism growth in Dubai is 17% per annum, and almost 15 million visitors are expected by 2010. Hotels boast one of the world's highest occupancy rates and there is likely to be a strong holiday letting market for tourists visiting particularly with families.
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Read introduction to this article – 1st part
