If you haven’t heard, the Dubai Real Estate market is rapidly emerging as one of the premier markets to own property in. Recently, several real estate gurus have made comparisons of the Dubai real estate market to that of Las Vegas before the mega casinos and hotel/resorts and Florida before the take over of Walt Disney.
With just over 30% of the worlds cranes currently siting in Dubai for high rise construction, the condo market of Dubai offers a wide varitey of amenities at affordable price points. From the white sandy beaches to the amazing night life, owning a piece of paradise might be easier than you think…
Compared to property prices of the United Kingdom or United States, a buyer of real estate in Dubai can typically expect to pay about 1/3 less than the UK or US. Another attractive feature of owning in Dubai is the fact that there are no income or property taxes. With demand high and supply low, the market continues to thrive and is expected to bring owners of Dubai property handsome returns in the coming years. Last year, rental rates climbed anywhere from 10% – 50% depending on where the property was located.
At this time condo hotels in Dubai are only being sold as 99 year leaseholds which offer automatic renewal after expiration for a small fee. There is a mounting school of thought that long leases rather than freehold ownership should emerge as the preferred method of purchasing condo hotels. Leasehold is common in many countries for high-rise property. Leasehold grants the duties and obligations of the landlord or freeholder to maintain the whole property in pristine condition. However, in a few months the laws in Dubai are expected to change to allow freehold ownership, and leasehold properties can be converted to freehold. Condo hotels will still be maintained within the standards set by the developer.