Property investment in the UAE
The United Arab Emirates is made up of seven states, the two more well known and larger are Abu Dhabi and Dubai, the other five known as the Northern Emirates are Ajman, Fujairah, Ras Al Khaimah, Sharjah and Umm Al Qaiwain. The reason Abu Dhabi and Dubai are better known, other than the fact of size and oil is that it is where the vast majority of the foreign have settled or invested in property. It is estimated that 2 out of 3 new homes bought, are done so by either private or corporate foreigners. You may be surprised to find out that only approximately 15% of the 4.4 million population are actually Emirates. Taking into account that, of that 4.4 million only 30% are home owners, this would lead us to believe there is still huge potential.
Not just a home
Since the 1960’s when oil was found the UAE has grown and grown, and it has been accelerated by the lack of red tape and no unnecessary bureaucracy. This has in turn encouraged massive international construction projects in the service, leisure and business sectors. The speed of construction is unprecedented and it needs to be to keep up with demand, as properties do not stay on the market long. The UAE is not just a business hub, with its year round sunshine and tropical waters, it also has a solid and booming tourist trade. The UAE also holds many records such as the tallest building in the world the Burj Khalifa, and the only seven star hotel in the world The Burj Al Arab hotel in Dubai.
The UAE as an investment
The United Arab Emirates is a highly sophisticated industrialized region in the world, with one of the most developed economies. The modern UAE is also very young and, thus, does not have many of the issues that face European metropolis’s such as overcrowding and infrastructure problems, it feels fresh and vibrant. The demand for real estate does not show any signs of subsiding, in fact, it seems to be picking up and spreading out of the usual Abu Dhabi and Dubai, (the big business centers) into the other Emirates. The UAE ranks 5th in the world for GDP per capita, each Emirates growth varies, but without doubt Dubai has had the highest. Today it has a stable average of 15%. Often investment comes down to timing, the “golden time” for Dubai was about 10 years ago, as the northern Emirates are just starting to blossom, now would appear to be the perfect time to see the greatest returns on investment in the Northern Emirates; estimated returns of about 25 – 40% per annum.
Incentives to invest
- 0% tax on capital appreciation. Thus, at the point of sale there is 0% tax on capital growth;
- 0% tax on rental return;
- Economic and political stability;
- Major trade and business hub, globally ranked as the 3rd sea port for trade turnover and the world’s busiest airport;
- A large and solid tourism industry, 2013 saw 12million international tourists visit the UAE;
- Property registration efficient and transparent, tittle deeds can be issued within 30 minutes.
- Mohammad Bin Rashid City
This is a mixed use development. MBR city as it will be known will concentrate on four major areas which are:
- Family tourism, which includes a park, leisure center and entertainment set up in collaboration with Universal Studios.
- Retail, this will include the largest shopping mall in the world.
- Arts, whichwill include the largest area for arts galleries in Mena.
Bluewaters Island is set to be one of the largest tourist hotspots in the world. It will feature a demarcated retail, residential, hospitality and entertainment zones and will house the Dubai Eye, the world’s largest Ferris wheel.
- Taj Arabia, Mughal Gardens
Taj Arabia, a replica of India’s Taj Mahal, will be a 350-room hotel and serviced apartments. It will be an all-glass structure. India’s The Leela Palaces, Hotels and Resorts will be managing the hotel.
If you are interested in investing in one of the above projects or any other projects in the UAE, feel free to contact us at OLIESERVE. We are here to help, send us an email at email@example.com , give us a call on (+357) 25136119 or send us a Skype message on Olie.Serve1.