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a friend of mine has recently bought an apartment in Dubai claiming that there is great capital appreciation potential? he mentioned that there has been over 100% over the last 18 months.
isn't that a bigger bubble than in the UK?
does anyone have any tips or know where i can get some information?
any advice appreciated! |
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I recently read a helpful article in Property Investor News (PIN). If you have not read this, you will find it very insightful (info on yields, rents, area etcs).
Perhaps you could get hold of a back copy? |
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Not an area of my expertise, but I read that the Beckhams have recently bought a villa on "Palm Island" - one of the reclaimed land developments. Not much income tax to pay out there (which I assume applies to rent as well?) but the relative health of rental sector I'm not sure of.
Anyone?
Will |
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Phil, I am also looking to invest in Dubai. Have you learnt anything as I would be interested to know your views. Thank you, Julie |
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julie,
conincidently, i have just booked a holiday to go there in mid November and so will report back then.
phil |
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Investment in Dubai is becoming increasingly popular, the amount of enquiries has more than doubled over the past 6 months. I would have some caution though, prices have gone through the roof in over the past 3 years, there is not a huge resale market and mortgages are not that easy to come by. Usually, you need a deposit of up to 40%, only 1 lender will do it on a buy to let basis. Most purchasers are hoping for a 365 day rental return on the basis of the weather. If I were investing I would look at it as a long term inv. I would however reiterate that there is split opinion as to whether the bubble is about to burst or will it be the next London Docklands. |
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What kind of outlay is required to buy a two bed, two bath flat at one of these well-known new resorts?
Also I have heard that Oman is trying to replicate the success that Dubai has had.
Darren made an interestng pt whether Dubai will be the new Docklands. If Oman etc, get their act together then competition and supply should stabilise Dubai prices.
Julian |
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I visited Dubai in 2001, after wanting to go there for many many years (was thinking about working and living out there, my wife is Arabic)......
What a disappointment.
It is one, VERY over hyped mass of desert.
The OVERHYPED Duty Free is NOTHING at all to shout about.
ALL they can bleat on about is the ONE outstanding hotel (the Burj Al Arab) - which does deserve it's 7 stars (but at a price of course).
The rest ??
Beautiful Russian Prostitutes (I'm told), NO ARABS TO BE SEEN ANYWHERE (they come out at night ONLY), teeming with Indians (they are the ONLY ones who can tolerate the intolerable heat and you would think you are in India).
Yes, "bubble", "burst", "will", and "one-day" are words that all spring to mind.
P.S. Oh yes, nearly forgot. Dubai people will definately make you very aware that it is THEIR land (one example - they have a very big habit of driving very fast and bibbing any foreigner out of the way - it is THEIR country).
Good Luck |
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Hi All,
I am a freelance real estate broker dealing with properties in Dubai for the last 2 years and have personally guided my client’s through the purchase in Dubai and advised then on mortgage and all other information needed for an investor.
If anyone is interested in finding out more on Dubai or looking for some guidance then do give me a call and I will be more than happy to discuss the Dubai property market
Regards,
Nurul Islam, 07739 175712
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Nurul,
I'd be interested in some general information on the investments that you can source. Please email me when you have a moment frankiesedia@hotmail.com.
Many thanks,
FS |
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We lived in Dubai for 6 years.
Would treat property deals with caution. Rules and regulations change so frequently - wouldn't surprise me if investors got caught out.
Agree with most of what Lager Brains wrote.
Beware of "sponsors" to make a deal work - the locals like their income which doesn't need to be worked for...
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Hi Jo,
Can you send me your e-mail address please.
Thanks
Nurul. |
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Hi Francesco & Jo,
There are various strategy you can apply in this new emerging market:
Buy to sell: In prime exclusive locations like Palm Island (www.nakheel.com) you can put you deposit of 15% and sell before the next payment is due as there is hughe demand for these properties globally (demand outstrips supply). First Palm property was sold in Jan 2003 and they are commanding appreciation of between 70% to 110% depending on views. Rental yield on these are minimum of 12% per year net (maxium can be anything between 12% - 20%)
Buy to Let: Prime locations near business and finance (www.damacproperties.com) where you will get appreciation but a stable and good rental yield of 10%-12% net with white collar workers as tenant. Price have risen 30% in this market since 2003.
Holiday Homes: Exclusive locations like the Palm is perfect for holiday homes and rental yield is much higher then any other type of investments.
Currently, Dubai is building 3 tallest towers in the World, a underground hotel, gtand prix track, Dubai land (3 times bigger than Disney Land Florida), 2 indoor ski resorts, 2 more Palm Island, Financial Hub (www.difc.ae), biggest shopping in the world, and so on……..,thus you can see that this place will be something special in few years to come.
In terms of real estate, Dubai provides huge opportunity and benefits for the investor.
Regards,
Nurul Islam, 07739 175712
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No disrespect Nural, but of course you are going to give your 'unbiased' view (as a Salesman) are you not ?? |
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Hi Lager Brains,
Your point is valid, but like everything a good research and due diligence will provide the answer - and in most cases there will be a good deal of evidence to support my beliefs in the Dubai market.
Regards,
Nurul. |
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Nurul,
The pospulation growth in Dubai seems to be coming from the indian sub-continent workers and servants. Infact they out-number the locals, are very poor and can be seen sleeping rough just about everywhere! Is there any information about populatoin growths from more affluent areas? i.e. people with real money and a desire to reside in Dubai...
Regards, Malik |
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Developments are popping up everywhere but not all are in areas of growth. Look to invest if you can around the DIFC (Dubai International Finance Centre) as this is where all the banks and finance centres will be looking for company rentals. Construction in the DIFC is now well underway creating the fastest growing property market in the world. With Dubai, it’s absolutely paramount that you locate the correct developer to work with, one who specialises in selecting the correct development sites in the right part of Dubai. Email me if you require further information on property in Dubai. |
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Hi nurul,
Do you deal with resale? as i have purchased a property in dubai and am looking to sell it, can you email me at hab_786@hotmail.com.
thanks
h.islam |
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Beware of this market. We invested with an agent:- Capital Developments(Scotland) ltd and were told we could resell before completion.
We could not.
We are now stuck with an appt that has risen only 10% in 15 months, hardly a startling investment.
Andrew West
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Research, research, research.
That's the best advice I can give. I live in Dubai and can say that those who bought at the begining, have made an an absoulute fortune. The market is not as crazy as it used to be and you can still make money.
My honest opinion, for what's it worth, buy from a reputable company (stick with the names you have heard of) or go directly to the developers. Too many cowboys here. I would be wary of buying properties with a completion several years away and we are all waiting for the bubble to burst. |
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All built on sand if you ask me and washed every day by the ocean.If i was going to invest in Dubia i would have invested in construction materials 10 years ago.
Any idea how hot it gets for 3-4 months in the summer!
The wealthy in Dubia get them selves over to chilly old Britain during this time.
To hot even for the locals. |
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I am buying four properties in Dubai, there will be no bubble, as this market is a very special one, it is the birth of a new country (city) and you need to beleive in that.
If you do your research you will see that the ruler is not going to let anyone spoil his plans, and is looking for other means, other than Oil to sustain the future, ask yourselves, would you have invested in Singapore, Hong Kong or greta cities of the world before they grew to what they are today.
Alan |
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