The Dubai real estate market has experienced tremendous growth over recent years, and this is all the more notable considering that the traditional real estate fundamentals are not what this particular market operates on. Many people are therefore wondering about the explanation for the bust that the Dubai real estate market is set for. Population growth may be a sound explanation, considering that Dubai’s population is about three or four times bigger than that of other developing countries all over the world. The capital appreciation in the Dubai real estate market could also be justified by the high yields that investors achieved, both for short-term and long-term rentals.
Many investors are attracted by the opportunities that the Dubai real estate market provides. Shortstay renting is probably the most profitable way of producing money from Dubai real estate, because the rather high average rates that Dubai hotels charge per night have determined tourists to start looking for other options, such as a Dubai apartment or villa.
Probably the best thing about the Dubai real estate market is that there is no tax on property transactions. In fact only the ones subjected to taxes are the oil industry, the banking sector, and the cigarette manufacturers. Under these circumstances, it’s only understandable why many investors want to have their own share of Dubai property.
Being the owner of Dubai property comes with a series of advantages, such as being able to apply for residency. Furthermore, foreigners who want to purchase Dubai property are not required to have a bank account in this emirate. The transaction itself is far from being complicated, but you should definitely consider seeking legal counsel before the transaction, and legal representation during it, given the vague nature of Dubai property transactions.
Dubai property prices have been increasing considerably over the past few years, since 2002, to be more precise, when foreigners were allowed to purchase properties in this emirate. The reason for this appreciable increase was the intense demand that the Dubai real estate market has been experiencing. However, Dubai real estate can still be profitable, provided that investors know exactly what to invest in and what to do with that piece of property. Different people are interested in different types of real estate, and understanding the market from this point of view is one sure step towards success. For instance, completed apartments and family villas are in high demand for long-term rental.
All in all, long-term profit form the Dubai real estate market is possible, but it comes with certain conditions. Although this market is hardly similar to traditional and more conventional real estate markets, there is one aspect that is true for all real estate markets alike, including the Dubai one: profit from property purchase requires thorough research prior to the actual investment. Those interested in purchasing Dubai property will definitely benefit from using the information available online about the Dubai real estate market.
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