The sky's the limit: property investment in Dubai
Posted on 18/11/2008
You don’t even need to have stepped foot in the United Arab Emirates (UAE) to know all about the incredible development and construction underway in Dubai.
But did you ever consider that the UAE’s property boom could directly benefit you?
Sustained growth
Flagship architectural projects such as the Palm Jumeirah and The World appear frequently in the Sunday supplements and travel magazines, and despite the terrible uncertainty now facing property markets across the globe, the UAE property market has experienced yet another year of growth in 2008.
Built on vast oil reserves, the UAE has a rich and ever-increasing population, bolstered by the masses of expats who come to the Gulf each year in search of their tax-free fortunes and the growing numbers of tourists choosing to holiday in the Middle East.
It’s little wonder that investment in the construction of residential and commercial property shows little sign of stopping any time soon. According to The Market: Real Estate 2008, office space in Dubai may increase as much as eight-fold in coming years. Meanwhile, next door in Abu Dhabi, the completion of 80,000 luxury apartments is planned over the coming decade.
Foreign investment
Legislation passed in 2002 (Dubai) and 2005 (Abu Dhabi) has allowed foreign investors to enjoy a slice of the action – and potential rewards – in the development of the UAE cities.
In Dubai, there has been a strong demand for residential rental properties historically, and the attraction of foreign investors to the property market in recent years has helped to increase supply substantially.
Yet because renting is common among Dubai residents, demand for quality lets is consistently high. What’s more, both residential and commercial rental and capital values have grown steadily and significantly since 2005 (by around 25% or more), according to The Market report.
Seizing the opportunity
Whilst it is thought that the completion of several major mixed-use developments in Dubai in late 2008/early 2009 may stabilise rents to some degree, the Gulf city continues to represent a significant opportunity for profitable investment.
Clear Global offers UK investors a full service to guide you through the process of investing in Gulf property as simply and easily as possible.
To find out more about investing in UAE property with the help of Clear, simply call us on 0845 072 4000.