Buying Guide
Dubai is one of the world’s fastest growing regions and is perhaps the hotest property spot on the planet.
Around 30% of the world’s cranes are said to be in located in Dubai working in the construction industry!
In fact we are seeing a modern day Gold Rush fuelled by the real estate boom in the "City of Gold" .
7 Reasons to buy property in Dubai
Dubai is already a spectacular city with gleaming towers and stunning sights , and along Jumeirah Beach there are the Palm Islands , the World and Dubai Waterfront jutting into the dazzling azure of the Arabian Gulf.
Investors are rushing to buy up property "off-plan" from the Developers in expectation of strong capital growth , while Second Home Purchasers are attracted by Dubai’s western orientated lifestyle, cosmopolitan atmosphere, sub-tropical climate , not to mention its Tax Free status.
In recent years, prices have increased by as much as 25 per cent per annum, but remain relatively low by European standards.
The surge in new residential and commercial developments has fuelled fears of a property bubble, but demand is still exceeding supply and is not expected to slow in the short term. There are an estimated 24,000 new people moving permanently to Dubai to live and work every month!
Dubai is a major investment opportunity, but beware, the buying process is still largely unregulated and as such is risky for the uninitiated.
Dubai may be witnessing a modern day Goldrush , but in Property Investment terms it is as wild as the original California Goldrush.
As a potential Investor you are therefore strongly advised to deal through a knowledgeable and reputable Property Agent or Consultant , who can guide you right the way from sourcing to successful acquisition of your dream property, helping you avoid costly pitfalls.
Dubai – an overview
The City of Dubai consists of two main areas, Bur Dubai (the older part) and Deira, which faces it across Dubai Creek and is now the centre of the city.
Residential locations favoured by Westerners include Jumeirah, which lies on the Arabian Gulf Coast to the southwest of the city , and Al-Garhoud, situated on the northeastern side of the creek, near the airport.
However, the recent property boom has led to a ripple effect that is enlarging the popular areas.
Most residential development is currently happening west of the city up along the Arabian Gulf Coastal strip , with the majority of foreign and expatriate purchasers concentrated in an area of approximately 25 km2, within easy reach of the beaches and the city-centre facilities.
Since 2002, when, by royal decree, foreign nationals first became eligible to own property, Dubai has enjoyed a construction boom.
New developments, many of them extremely luxurious and featuring the latest in technology, are springing up, particularly in areas popular with expatriates. These include the 3 Palm Islands ( Palm Deira, Palm Jumeirah and Palm Jebel Ali) vast new resort developments constructed in the shape of palm trees , projecting into the Arabian Gulf , the "World" (consisting of 300 islands forming the shape of the world lying 4 km off the coast ), Dubai Waterfront , and Dubai Marina , all extending Dubai's coastline considerably.
The world’s tallest residential tower Burj Dubai is currently under construction.
Buying a home
Until 2002, ownership of property in Dubai was restricted by law to citizens of the UAE and other nationals of the Arab Gulf Cooperation Council. Even when this law was reversed, there was, until recently, no federal law that recognised freehold tenure, which meant that the value of Dubai freeholds rested in essence on the country's international trading credentials and good name rather than on enforceable law.
Foreigners who bought property in Dubai received a deed from the major development companies, which are, effectively, owned and controlled by Dubai's government and, ultimately, its ruler. Although this state of affairs had little or no significant effect on the burgeoning property market, it was not entirely satisfactory.
New freehold laws
In March 2006, the Dubai government passed a long-awaited law allowing foreign freehold ownership of property in the emirate, but only in areas designated by the ruler. Owners are permitted to derive benefit from and to let their properties.
It is generally understood that the freehold as set out under this law is a freehold in the international sense, whereby owners are deemed to have absolute rights in their property.
Some developers are still selling leasehold rather than freehold titles, in which case the title is valid for the period stipulated in the lease agreement.
The Buying Process
Because the international property market in Dubai is still in its infancy, there is as yet no formal purchase process.
The only piece of paperwork required is a (usually) straightforward sales agreement. Before signing, it is advisable to consult a local lawyer or one familiar with Dubai, since, once signed, the document becomes legally binding.
In the majority of cases, those buying freehold property in Dubai do not incur survey fees. Stamp Duty does not exist. The only significant cost, therefore, is a 1.5 per cent land registry fee, payable on completion.
Because of the absence of a structured purchase process, it is essential to tread warily and deal only with reputable developers and/or agents.
Passports, visas and residency
All visitors to the UAE must hold a passport that is valid for three months from date of entry.
British citizens are granted a visit visa, free of charge, on arrival. Visas are valid for 60 days and, for a fee, may be renewed once for an additional 30 days.
Holders of British passports not endorsed British Citizen (that is, those born abroad) must produce tickets and documents for their next destination and have a sponsor in the UAE to cover their stay.
Anyone wishing to work, open a bank account or rent accommodation must hold a residence visa. There are two types, one available to those employed in Dubai by a company, the other granted to family members of those so employed.
Dubai's economy
Dubai is less dependent on oil than the other UAE states. Because its reserves are predicted to run out within the next few years, it has consciously sought to diversify, a policy that has been outstandingly successful.
Oil revenues have been reinvested to create a modern infrastructure and amenities. Dubai has built its current wealth mainly on its role as an international focus for commercial and industrial development, investment and tourism, and has become a regional centre for international corporate headquarters and computer and media companies. Fifteen free trade zones are being developed, including the world's first e-business free zone. A free trade zone is an area within a country where import duties and taxes are abolished, quotas reduced or eliminated and red tape significantly decreased, to encourage foreign organisations to do business there.
Dubai also has a tradition of undertaking vast development projects, which have included the construction of the world's tallest hotel.
Communications
Telephone
Dubai has an excellent, modern telecommunications system. The Emirates Telecommunications Corporation (Etisalat), which is required by the Telecommunications Regulatory Authority to censor Internet sites, has a monopoly on most business and personal telecommunications services in the UAE. However, a new telephone company and Internet Service Provider, a subsidiary of Dubai Internet City, has recently been launched to serve expatriates who have purchased freehold property within the UAE.
Internet
Dubai has numerous Internet cafés charging reasonable rates.
Post
There are no postal deliveries in Dubai. All mail is sent to post office boxes. Most residents use their company P.O . box address for private mail, but it is possible to rent a personal box from the central post office in Karama.
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