Property investments in Dubai

M

mikey12

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2 buy or not 2 buy in dubai.if so,what areas are best for investement( Dubai Marina or Sports City)
 
mikey12,

Go out and get a feel for the place. Visit the different areas and then decide. Best money you will ever spend.
 
was out there recently myself and had a very relaxing break. We stayed in a fairly upmarket hotel on the beach and we very impressed by the food/service etc. However, the was a staggering amount of building work going on when we were there. We counted 9 tall appartment blocks going up behind our hotel alone. As far a I could tell the preferred location is as close to the beach as possible but the place is changing and evolving so quickly I imagine that many of the newer developments will become more popular.

One caveat though - we found it quite difficult to get reservations for many of the restaurants in the hotel we were staying in as the place was quite busy. Consequently, I am not too sure what a lot of the people who will rent these new appartments will be able to do for a social life given that much of it seems to revolve around the hotels. I did not recall seeing to many restaurants away from the hotels (apart from the usual fast-food places in the malls) and I suspect that you can only get a drink in the hotels and private clubs.

Before you spend a penny on a property you really need to go out there. It is without a doubt the oddest place that I have ever visited - more like Manhattan in the desert than a beach resort. Whether property there is a good investment or not is not something that I can answer but if you do take the plunge remember that you are buying into an unprecedented property boom.
 
From wht i've heard you may want to check into how you would plan to offload your investment in the future....I don't believe there are many EA's there in the second hand market.

ninsaga
 
The place is going to be lke a construction site for the next 10 years. Average salary in Dubai is $20k - so if you're trying to offload a €250k apartment, don't expect the locals to come rushing. Also, even though the UAE is tax free, you're liable for stamp duty and income tax in Ireland.
 
GVA said:
... Also, even though the UAE is tax free, you're liable for stamp duty and income tax in Ireland.
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You would be liable to Capital Gains Tax on any profit, but I cannot see why you would pay Irish stamp duty on the purchase of a foreign property
 
You would have to pay income tax in Ireland on any rental income profit on rent received in Dubai and pay capital gains Tax in Ireland when/if you sell the property in Dubai.

You would not have to pay stamp duty in Ireland when purchasing a property in Dubai
 
F. Kruger said:
mikey12,

Go out and get a feel for the place. Visit the different areas and then decide. Best money you will ever spend.
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you must have brought there a couple of years ago??
 
GVA said:
The place is going to be lke a construction site for the next 10 years. Average salary in Dubai is $20k - so if you're trying to offload a €250k apartment, don't expect the locals to come rushing. Also, even though the UAE is tax free, you're liable for stamp duty and income tax in Ireland.
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good comment someone who knows the market and not interested in hype!!! good on you
 
There is quite a balanced report on the Dubai property market in the Editorial section of [broken link removed]. It isn't fawning all over it like a lot of the stuff you see in the papers.
 
definitely go and have a look. I lived there last year and it is some of the most amazing building I have ever seen however I would question the sustainability of the market. There are a lot of european and American companies who have established a presence there in Dubai Internet and Media City and the Financial Centre is under construction. However the pace of commercial growth has stopped. Retail and shopping centres is booming at the moment and the new shopping centres are amazing places to visit.

Around the Marina are we counted 48 buildings over 30 stories under construction. Easily more than 10,000 apartments ! We could not figure out who will live in these as the majority of the immigrants are indian and pakistani workers in construction, hotels etc. They are provided accommodation in work compounds outside the city so there is not the normal profile of renting that there would be in Ireland.

My personal opinion is that some people that get in to the unusual buildings such as the tallest building in the world that is underconstruction will probably be able to turn a short term profit due to the uniqueness and exclusivity of their property.

There is no shortage of desert so until Dubai meets Abu Dhabi, there will be plenty of space for new apartments !
 
I'm just back for Dubai and gained some valuable info on Dubai investments. Rent is increasing by 30% each year but this is going to stop as so many new developments are being built spreading out into the desert. Best to target holiday rental so a property by the coast is essential. Dubai Marina is a fantastic investment for both holiday rental and residential as rent there will never drop. Dubai is a building site at the moment but when its done it will be amazing! I would avoid sports city as its not by the sea and there are so many other residential areas similar to it planned to be built. If you want to invest more inland then check out Dubailand (worlds largest theme park), properties are quite cheap and alot of holiday rential potential. Idealy if you could get an appartment on the palm you've hit the jackpot!
 
Ursula said:
Rent is increasing by 30% each year
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Who told you this? Can it be verified by a reliable source.

Ursula said:
but this is going to stop as so many new developments are being built
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This doesn't sound too good!

Ursula said:
Dubai Marina is a fantastic investment for both holiday rental and residential as rent there will never drop
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Really?? How do you know the rent will never drop?

Ursula said:
Idealy if you could get an appartment on the palm you've hit the jackpot!
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Hold on! I'ill just get my cheque book!!!
 
Rents have increased by 30%, but now you are looking at 8-10% increases.

There is a medium level of risk involved in Dubai, i.e oversupply. The marina development is fantastic but there will be 200towers there once they are all completed.
 
Does anyone have any knowledge of whether women can inherit. Also what is the current position with leashold land.

Thanks

Summer
 
Bilbo777 said:
Rents have increased by 30%, but now you are looking at 8-10% increases.

There is a medium level of risk involved in Dubai, i.e oversupply. The marina development is fantastic but there will be 200towers there once they are all completed.
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Bilbo could clarify how you know rent has gone up 30%? Is this in the last 12 months?

how do you know rents are going to increase a further 8-10%

Thanks,
 
An executive order from Dubai Crown Prince General Sheikh Mohammed bin Rashid Al Maktoum has capped rental prices increases at 15% until the end of 2006. The Rent Committee of the Dubai Municipality will implement the order.
This decision comes against a background of surging rental prices in Dubai this year, with property agents Asteco estimating that the average rent price increase for 2005 is 38%.
This hyper-inflation of living costs has clearly worried the Dubai authorities as it undermines the cost structure of companies doing business in Dubai and threatens the long-term competitiveness of the emirate.
By acting now the Dubai Government intends to bridge the gap between the current shortage of available property - which is the fundamental force driving rents up - and the arrival of a large supply of new property in late and 2006 and 2007, depending on construction delays.

Timely action
Thus this appears a timely response, although probably only a temporary measure to deal with an extreme situation. And the forces of supply and demand will likely alone determine rental pricing after the end of 2006.
For Dubai property investors this action is a reminder that the Dubai Government remains a very potent and proactive part of the Dubai real estate market.
On balance this is a positive. Government intervention in property markets can smooth out the ups and downs of the more ruthless business cycle of supply and demand. It can ensure that some short-term profits for owners are given up for longer term benefit.
However, there is also a danger in encouraging property investors to believe that the government will always intervene to protect their interests. For then investors will be more likely to overstretch themselves and deliver an oversupply of property, believing that if something goes wrong the government will always be there to save them.
 
Also what is the current position with leashold land.
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Plans are to change some of this to freehold over time. Slow process I would imagine as priority appears to be new projects.
 
GVA said:
The place is going to be lke a construction site for the next 10 years. Average salary in Dubai is $20k - so if you're trying to offload a €250k apartment, don't expect the locals to come rushing. Also, even though the UAE is tax free, you're liable for stamp duty and income tax in Ireland.
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Perhaps you have taken the average wage of a builder laying bricks or a crane driver?
 
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