1. Property is inexpensive on an International level. Property is inexpensive by comparison to other similar trading hubs around the world. There is scope for a substantial further rise, and certain properties have increased by more than 400% in value already.
2. Freehold Properties. Dubai is in the process of creating an international property market from scratch, after the introduction of freehold (foreign ownership) few years ago, property laws are opening up certain aspects of ownership and residency rights for foreigners.Thus buyers are given an exceptionally good deal to encourage them to be pioneers.
3. Shortage of supply. The Dubai Government is working hard to prevent a shortage of supply and is giving land to developers as an incentive. What looks like massive supply today in Dubai is nothing compared with demand. Dubai is after all growing its GDP by 7-8% a year and shows no sign of slowing down, quite the contrary.
4. Rising Building Costs. A fundamental influence on property prices are rising building costs. The low US dollar is pushing up the cost of materials from Europe which is pushing energy prices to its peak.
5. Tax Free Income. Dubai is a city where a lot of people earn high tax-free salaries and are in a position to support higher house prices. This is a city with a 20-year track record of strong economic growth and will continue to attract foreign and regional inward investment.
6. International Business Centre. Long recognised as the leading regional trading hub of the Middle East, Dubai has now become an international business and re-export centre.
The country has developed rapidly over the past 10 years and has transformed itself from an oil dependent regional entrepot into a highly diversified international business centre of global significance, which offers opportunities for UK business people in all sectors.
7. Tourism. Over 3.4 million tourists visited Dubai in 2001 and the figure has grown to 6.44 million in 2007. This figure has exceeded the expection of 6.0 million tourist by 2010. Dubai is going from strength to strength.
8. Buy v Rent. Any long-term resident will pay out a fortune in rent, and that money is better invested in a property. In addition, it is presently up to 40% cheaper to buy than to rent, so buying a big villa costs the same as renting a small one. The 10% down payment on a new villa is the same as the upfront annual rent payment. Rental yields of up to 10% are achievable in Dubai compared to under 5% in Central London.
9. Returns for Investors. Prices for properties in Dubai are appreciating steadily at the rate of 10% - 15% per annum, (for some developments even greater). It is estimated that by 2009, based on current growth, your initial financial investment is expected to at least double.
10. Attractive Currency Rates. The local currency, AED (Dirham) is fixed with the US dollar (3.675 AED: $1). The recent strength of the pound against the dollar means by investing now, investors are achieving a 10% - 15% ready equity compared to the same prices a year ago.