Dubai is the largest city in the United Arab Emirates (UAE). The UAE is a united federation of seven "emirates," with a hereditary "emir" governing each and one of the emirs selected to govern the entire federation. It borders Saudi Arabia and Oman.
The UAE in general, and Dubai in particular, have experienced significant economic growth in recent years. Following a period of turbulence, the city has emerged as a symbol of development and modernity in the Middle East. Thanks to an excellent location, many businesses have decided to set up offices and other operations there. This, in turn, has driven massive building developments which have earned admiration from around the world.
Since the government first allowed properties in certain areas to be owned by overseas investors, the city has also emerged as a thriving investment opportunity. In fact, the government actively encourages overseas property investment. Attractive deals are tendered to overseas investors, providing the chance to pick up properties at lower prices which still give the promise of great returns.
The thriving business and commercial element is the chief driving factor behind demand for property for sale in Dubai. Business properties are, of course, in demand as a result of this growth. Furthermore, the influx of so many large and small businesses has increased employment for the city and caused more people to move to Dubai in order to work with the many companies who operate there. Tax-free high salaries and a high standard of living make the city particularly attractive to professionals from abroad. Demand is therefore high for a range of different property types, and the government has invested $40 billion into attempts to meet this demand.
The fact that income and capital gains are not taxed in Dubai attracts many foreign businessmen who, as mentioned above, help fuel the demand for property. Of course, this also makes it an attractive place to invest in property. The tax-free nature gives a significant boost to your returns compared to most other locations.
Rental properties can be an attractive and safe option. It is true that many people in Dubai opt to buy properties rather than rent, as this can be up to 40% cheaper. In spite of this, however, Dubai’s rental market remains quite stable. Returns on rented properties are subject to some fluctuation, but tend to remain thoroughly worthwhile and are considered very safe in the longer term.
With its thriving portfolio of international businesses and the wealth of professionals this brings, commercial and residential properties in Dubai tend to attract most attention. However, the city is also a thriving tourist destination. A mild climate, low crime rates, and excellent shopping, it was the world’s 7th most visited city in 2010 and is expected to be attracting 15 million tourists a year by 2015. This also makes for some exciting investment opportunities in tourist properties, with the potential to bring strong returns.