Dubai Real Estate Investment – Remuneration for Foreign Real Estate Investors in Dubai
In the last two or three years, the performance of Dubai real estate market has been robust. This tremendous performance has played a prominent part in developing solid economic base for Dubai and making it an investor’s paradise. All this has happened because of the hard work done by Dubai government. But there is more work that needs to be done if Dubai wants to continue this real estate boom.
The demand for real estate in Dubai has increased further because government owned real estate developers have also started giving properties to foreign investors. It is worth mentioning in this regard that foreign real estate investors can now own freehold properties in Dubai. Some of the government owned real estate developers is Dubai Properties, Emmar and Nakheel.
For foreign real estate investors, property rights and transaction cost is quite important. In most of the countries, foreigners are not allowed to own freehold properties. And that is where Dubai real estate scores over other countries. The best part about Dubai real estate is that transaction cost is quite low as compared to other countries. Transaction cost includes registration fees and stamp duty. Taking all this into account, it is a surprise to know that Dubai has become a preferred location for foreign real estate investors.
Huge Demand for Properties
There is a huge demand for real estate properties in Dubai because of the fact that Dubai real estate market is open to the foreign real estate investors. Due to limited supply and increasing population, real estate prices and rents have increased quite a lot in Dubai.
But situation will improve in the coming years thanks to the entry of private real estate developers in the market. According to recent research conducted on Dubai real estate, supply is expected to catch up with demand next year. This in turn will also stabilize the real estate prices in Dubai.
The interest rate in Dubai real estate market is evaluated on the basis of international market, more so according to the US interest rate. In the last few years, US interest rate is quite low. If experts are to be believed, this has motivated foreign real estate investors to invest in Dubai real estate. Low cost of mortgage financing has also played a vital part in attracting foreign real estate investors to Dubai real estate.
After the tragic event of 9/11, the US government has adopted a strict policy with foreign investors. Because of this, foreign investors have been looking for location that not only gives them economic freedom but also good investment return. Dubai has emerged as the ideal choice for these investors offering them wide opportunities to invest and make profits in return.
Article submitted by Sophia K webmaster for Dubai Real Estate Property Advice in Dubai