Property in Dubai
What you need to know before purchase Dubai Property
Dubai is a city in the United Arab Emirates that is built around the principles of free trade, foreign investment, and sound business practices. It was Sheikh Maktoumi bin Hasher Al Maktoum who declared Dubai as a free port in 1901, abolishing all tariffs. He began a well-planned program to persuade the traders in Iran to relocate to Dubai Creek.
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Dubai Creek was a natural harbor that played an essential part in Dubai's early development.
Property in Dubai started picking up after the real economic spurt in 1950. During that decade Sheikh Rashid bin Saeed Al Maktoum expanded the Dubai Creeek to increase its capacity. The Sheikh also founded the Dubai airport and the first hotel in Dubai in 1959.
Thanks to the change of rules recently, property in Dubai has seen a remarkable growth. Previously, only native citizens were allowed to own property in Dubai but now anyone can do so.
The reason for this change is that the government wished to diversify from an oil-dependent economy to a service and tourism oriented economy. This has made property in Dubai more valuable and brought about a property boom.
The very first freehold property in Dubai occupied by non-UAE citizens is collectively known as Emirates Hills and includes The Meadows, The Springs, and the lakes. These are all upscale neighborhoods that were developed by Emaar Properties. People from many countries have settled down in Dubai over the past few years, contributing to Dubai's growing economy and prosperity.
Starting in the year 2000, the Dubai municipality started many construction projects throughout the city. The plans are so elaborate and being followed with determination that it is estimated that 15-25% of the world's cranes (used in construction) could currently be found in the United Arab Emirates busy giving new shape to property in Dubai. Construction in Dubai happens much faster than the rate of construction in most developed nations due to availability of cheap labor. This means that investors in real estate in Dubai are able to reap their profits much sooner.
Since the market is fresh with several legislative changes still in the works that can only make the rules more lenient for foreign property investors the demand is greater than the supply. The profit margins are also much higher and there is no indication of this trend reversing anytime in the near future.
Rental property in Dubai has become much more expensive because of this and also as a result of the increasing number of professionals that annually move to Dubai because of its no-tax policies and better lifestyle. The rise has been curbed at about 15% per annum in the year 2006 as per orders from Sheikh Mohammad.