Sunday, October 5, 2014

Why Invest in Dubai Properties


  • Dubai is a tax-free city, with no income or capital gain tax. This makes it extremely attractive for people from all around the world to come and work in Dubai, as well as invest in property. 
  • Foreign investors are attracted to Dubai due to the various Free Zones.
  • Dubai is easily accessible, having direct flights from all the major cities in the world.
  • Dubai remains a popular tourism destination with its fabulous shopping malls, five-star hotels, beautiful beaches and numerous attractions.
  • Dubai is extremely safe, having a very low crime rate – making it a perfect place for families and wealthy individuals.
  • The climate in Dubai is very pleasant throughout the year, with only 3 months of summer heat.

Why does Dubai Real estate remain a good investment opportunity?


1. Property prices are inexpensive in comparison to other similar trading hubs around the world. There is a potential for further growth, as prices have grown by 10% in demanded projects from 2011.

2. Property is a good hedge against inflation.  At such times the higher cost of debt servicing can usually be pasted on in additional rent, while the value of the property inflates and its debt is unchanged.

3. Rental income from property is a stable source of income, and while it might fluctuate, is highly unlikely to vanish altogether. Compare that to interest on deposit accounts or dividends on shares. Good investment properties in Dubai offer 8-10% rent return (after deduction of maintenance feed).

4. Real estate always has a residual value, although prices can certainly fall as well as rise. But property values will never fall to zero unlike shares and hedge funds.

5. Property is a kind of hybrid asset with the capital appreciation of a stock but the income producing capacity of a bond.

6. Investors typically have more control over the nature, timing and size of real estate investments. This is partly because they are tangible and easier to understand, and diversification is readily available in the form of different types of property.

7. Dubai property is open to any investor from anywhere in the world, unlike the local stock market. This means greater liquidity and more funds in the marketplace.

8. Demand for property typically picks up during an economic boom or easier mortgage acquisition through Banks. Dubai banks have started lending again, and the number of finance purchases has increased significantly since 2009.

9. Real estate is always an excellent collateral security against loans, and allows debt finance to be secured at the best rates.

10. Property portfolios offer great scope for diversification of risk into different property types, locations and rental levels. This helps to spread the risk of an interruption to income flow.

Dubai for Business

Dubai has emerged as a leading regional commercial hub with state-of-the art infrastructure and a world-class business environment. It has now become the logical place to do business in the Middle East, providing investors with a unique and comprehensive value added platform. With its strategic location, tax-free living and consistently strong economic outlook, Dubai is the ideal base for multinationals and other companies targeting markets in Central Asia, the Middle East, Africa, the Asian Subcontinent and the Eastern Mediterranean.

Market Access

As the leading regional trading hub, Dubai offers access to a market of outstanding potential for overseas companies in a wide range of sectors. Among its key characteristics are:
A large market: more than $17 billion in domestic imports annually; gateway to a $150 billion p.a. 2 billion population regional import market

A growing market: Dubai's imports have more than doubled since 1989; regional economic growth and liberalisation is set to boost demand
A prosperous market: strategic location at the heart of one of the world's richest regions
A diversified market: wide import requirements; opportunities for suppliers of most products
An accessible market: served by more than 170 shipping lines and 120 airlines
An open market: no exchange controls, quotas or trade barriers

Dubai’s Business Climate

Dubai’s authorities have deliberately sought to create an environment, which is well ordered without being unduly restrictive. As a result, Dubai offers businessmen operating conditions that are among the most liberal and attractive in the region. There are many options open to international companies seeking to establish a business relationship with Dubai.

Pro-Business Environment

Dubai offers incoming business all the advantages of a highly developed economy. Its infrastructure and services match the highest international standards, facilitating efficiency, quality and service. Among the benefits are:
Free enterprise system
Highly developed transport infrastructure
State-of-the-art telecommunications
Sophisticated financial and services sector
Top international exhibition and conference venue
High quality office and residential accommodation
Reliable power, utilities etc.
First class hotels, hospitals, schools and shops
Cosmopolitan lifestyle.

Special Investment Incentives

Dubai's highly successful Jebel Ali Free Zone and the Airport Free Zone provide all the advantages available elsewhere in the emirate, with the following additional benefits:
100% foreign ownership and control
Renewable 15-year guarantee of no taxation
No customs duties
Flexible investment options
Efficient transport and distribution facilities
Full administrative and recruitment support.

The Costs

Overseas companies setting up in Dubai can secure cost advantages not generally available internationally. Among the reasons are:
No corporate taxes
No income taxes
No foreign exchange controls
No trade barriers
Competitive import duties (4% with many exemptions)
Competitive labour costs
Competitive energy costs
Competitive real estate costs

Opportunities

Dubai presents international business with a wide range of opportunities for different activities and operations, including:
Trade
Transport and distribution
Manufacturing and processing
Regional offices

Attractive lifestyle

Apart from economic advantages, the city offers a superior quality lifestyle that is truly international with luxury residential and office accommodation and excellent educational, health and shopping facilities. Sporting and leisure facilities are abundant and Dubai 's top class international hotels offer a wide range of dining and entertainment choices.