Investment Property in Dubai

Investment property in Dubai has seen a sharp fall in demand since the credit crisis hit the UAE but Dubai still represents great value for money.

The crunch has deterred many investors from any form of investment. The opportunities to make a good return on investment(ROI) from most asset classes has been limited: interest rates have fallen dramatically offering very poor yields, shares are unpredictable as the capital value of these is linked to the overall vagaries of the sentiment of the markets and the yields of these has become poor as economies have declined.

clock tower, Dubai

Property in the west has suffered as a result of the shortage of finance. Over the medium to long term, property has always been an excellent investment despite the recent downturn. Property investment in the UAE offers an excellent investment for the following reasons:

1. The UAE is a very well off country with huge reserves in trillions of US Dollars (the UK runs a deficit!).
2. Immigration is still continuing into the UAE creating real demand from real people.
3. The property market in Dubai and the UAE is funded by people’s own money and not by traditional western ‘debt’. The credit crunch originated in the US as a result of careless lending by institutions to subprime applicants.
4. It’s all tax free: there is no income tax and no capital gains tax.
5. The credit crunch has caused projects and developments to be cancelled or delayed in 2009. This means that those who commit now will do very well owing to a shortage of property in approximately three years time.
6. $698bn projects on track despite crisis reports ProLeads - Dubai based publisher. "To put it into perspective, the $698bn of continuing work we are reporting is almost equivalent to the latest stimulus package proposed for the US." said Emil Rademeyer, Director 07.02.2009. Property is a tangible asset which reassures investors in troubled times as they know that what they are actually buying is a real asset which will yield good returns when the cycle has moved on.

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