Dubai Real Estate Investment

by : alex

The temperature is continuing to rise in the Dubai property market, with hot new developments selling out in hours. But as speculators buy and sell property frantically, banks and builders try to slow the market down. Just how stable is the property market in Dubai?

Never has there been such an ambitious and creative drive to establish a property market as has been witnessed in Dubai over the past three years. Running short on oil reserves, Dubai's crown prince, Sheikh Mohammed Al Marktoum, set out to turn Dubai into the financial, commercial and tourism capital of the Middle East and in the space of three years he has more than succeeded. The country's GDP has expanded by 17 per cent over the past year and HSBC Bank estimates that there is $42.5 billion worth of projects under construction, compared with $20 billion for the rest of the neighboring oil states put together.
Real Estate and Tourism have become the driving force of the New Dubai since the Freehold title was introduced in fact the owner of a freehold title of real estate in Dubai does enjoy the most superior form of private ownership.

A freeholder is considered to be the absolute owner of the land and buildings comprised in his title; he has the right to occupy, use and enjoy his property forever ("in perpetuity") or until he transfers the title to a new owner, and his heirs are entitled to inherit his title upon his death. Nevertheless, a freeholder does not have total freedom to do what he wishes on his land.

It is possible for the prospective buyer to give Power of Attorney to a person to handle all the aspects of the purchase on their behalf. It is not necessary that one has to be present in Dubai to conclude the deal. But it is advisable that they check all the documentation and ensure that everything is clear before signing the deal.

Choose a realtor who has time to run through all the developments on their books, has an overall understanding of the Dubai market, a local office, knowledge of the legal framework, concise brochures, models and floor plans, details of the contract as well as schedule of payment terms. It is beneficial to have a look at all the developments in Dubai to determine which one fits your needs from a perspective of timescale to completion, cost and purpose (i.e. investment or residential, freehold /leasehold). If you are not getting sufficient information from your realtor, fine one that is more experience.

The short-term rental market in Dubai has proved to be one of the most profitable investment due the high shortage and high prices of Hotel rooms. Investing in the Dubai real estate market for the purpose of renting out your property as a holiday home is a very intelligent strategy however a professional management company shall be involved.