About UAE
Young, progressive, and dynamic…these are just a few words to describe the U.A.E. Ideally located between Africa, Asia, and Europe, the U.A.E. has transformed itself into the worldwide business hub between the Middle East and Asia. From world class structures, thriving industries, a cosmopolitan population, and a relaxing lifestyle, more and more people around the world are calling the U.A.E. their home, place of work or location for investment properties.
The emirate's revenues are from trade, real estate, tourism and financial services. Revenues from petroleum and natural gas contribute less than 6% of Dubai's US$40 billion economy. Real estate and construction, on the other hand, contributed 22.6% to the economy in 2008.
Benefits of investing in U.A.E. real estate are:
- Investment friendly laws
- 0% corporate, 0% property, 0% income, 0% capital gains taxes
- Interest free payment plans (pay towards principal, not interest)
- No foreign exchange controls, trade barriers, or quotas
- No restrictions on capital repatriation
- Dubai is the number one business city in GCC countries, having strong investor incentives and protections
- Strategically located at the crossroads of three continents: Europe – Asia and Africa
- Highest international standards for business, tourism and lifestyle
- Freedom from bureaucracy, freedom of living, and freedom of speech
- State of the art infrastructure and world-class business
- Tourism, shopping, and high-class lifestyle paradise
WHY IS EMIRATES REAL ESTATE SO “HOT”?
Real estate investment is a popular way of achieving capital gains and income. Saavy investors are looking at U.A.E. real estate to diversify their portfolios and gain higher returns on their investment. Some of the world's most famous real estate investors are developing properties in the Emirates. Real estate tycoon Donald Trump has partnered with a developer to build a tulip-shaped hotel in Dubai and international fashion designers Versace and Armani are launching boutique hotels, proving that investment in U.A.E. real estate is a smart move.
Over the past few years, Dubai, and surrounding Emirates, has attracted investors thanks to the potential offered by this booming country and a "can do attitude" from the government, which welcomes overseas investors. Dubai is the fastest growing economy in the world with a GDP growth of over 13%, mainly concentrated in real estate. Since the introduction of freehold property, the real estate market has become a huge success story. Recent studies suggest that the demand for residential and commercial property is likely to continue for the foreseeable future.
Capital gains and income yields have been much higher in the U.A.E. than most other international property markets and investors enjoy tax free investments with no personal income of capital gains taxes for purposes of UAE taxes. Property prices are increasing rapidly, making it even more lucrative for investors. Certain development projects have even gained more than 100% appreciation in less than 2 years.
The surge in real estate prices has been the result of Dubai's rapidly growing population, which has created huge demand for residential properties. Dubai's population was estimated at 1.2 million people in 2005—almost twice the number recorded in 1993, according to GlobalPropertyGuide.com. Only 7 percent of the city's inhabitants are local "Emiratis." The population is expected to double again during the next decade, according to an article in The Business last December.
With sharp increases in Dubai's population, the demand for property is also increasing with every passing day. If the recent trends are anything to go by, the population of Dubai would be around 1.9 million by 2010. The population of Dubai at present is around 1.4 million and if it continues to increase in the same rate, housing in Dubai could increase up to 45,000 to 50,000 new units annually.
With such increases in population, the demand for property has increased and demand outpaces supply.