Introduction - on this page you will find links to
details of Dubai homes for sale, Dubai rental accommodation, holiday
homes and shared housing in Dubai. Dubai is part of the seven
emirates that make up the United Arab Emirates (UAE) in the Middle East. The
UAE is situated between Oman and Saudi Arabia, and borders both the Gulf of
Oman and the Persian Gulf. Dubai has a sub-tropical climate, enjoying sunny
blue skies most of the year. Rain is infrequent and temperatures range from
10- 48 degrees centigrade. The currency in Dubai is the UAE Dirham. Dubai’s
commerce is service driven, from banking to communications. It is one of the
fastest growing cities in the world, and is a strange mix of modern
skyscrapers rubbing shoulders with old mosques and wind towers. It has good
beaches and shopping arcades.
Dubai originally consisted of
two towns merged into one, divided by Dubai Creek (Khor Dubai), an inlet of the
Gulf. Deira lies to the north and Bur Dubai to the south. In both areas you can
find busy souks and traditional architecture, but the old city centre is in
Deira. Since the completion of new office buildings along Sheikh Zayed Rd, the
centre of Dubai has moved further towards Abu Dhabi. The busiest parts of Deira
are Baniyas Rd, which runs along Dubai Creek; Al-Maktoum Rd and Al-Maktoum
Hospital Rd; Baniyas Square, also known as Al-Nasr Sq, which is at the heart of
this commercial centre; and Naif Rd. On the Bur Dubai side, the old souk area
runs from the Diwan (Ruler's Office) to the Al-Ghubajba Road, and inland as far
as Khalid bin al-Waleed Rd. Tourism in Dubai is expected to increase at a fast
rate, with a projected 15 million visitors a year by 2010, alongside a growing
property market and internal business activity.
The Dubai Property Market
- The Dubai property market is attractive to many investors partly because of
Dubai’s tax free status. Both commercial and residential properties have
historically shown high gains. In recent years. Since the freeing up of property
ownership rights for foreigners, and a commitment by the government to attract
foreign investors to do business, there has been an explosion of new property
build. Developers have found it difficult to meet all the demand and the
property market has been very buoyant. Over the last five years investors could
expect an average 18% p.a. growth and typical rental income returns of up to
12%.
Until 2006 foreigners had limited rights to
purchase property in Dubai. They can now purchase freehold land in certain
areas, and in other areas a leasehold right of purchase for a maximum of 99
years. This new right to buy is restricted to specific areas designated for
foreign ownership by the Ruler, Sheikh Mohammed bin Rashid al-Maktoum. These
areas are within the new developments, such as Dubailand, Dubai Pearl and Dubai
International Finance, all of which are intended for foreign business investors,
and these are attracting many expatriates of all countries, wanting to buy or
rent luxury apartments or villas.
Property investment in Dubai has seen spectacular
profits over recent years, with many off-plan properties sold on before they
were even completed. These levels of growth are less likely as the market
settles, but good growth and rental income prospects still remain. Industry
experts have commented that investment in Dubai’s property market should be seen
a long-term option.
The city offers a variety of properties: Jumeirah,
Umm Sequiem and the Safa Park areas are upmarket, and offer villa type
accommodation with prices to match. Less expensive areas are Satwa and Garhoud.
Typically Arabic areas are Al Quoz, Rashidiya and Mirdif, but also attract many
expatriates.
The most popular areas for apartments are in Bur
Dubai, the Sheikh Road, and less expensive ones in Deira, Satwa and Karama. The
standard of the luxury apartments is high, often with shared gym and pool
facilities and garaged car parking.
How to Buy a Property for Sale in Dubai -
Dubai has a tax-free regime. This means that
there is within the country no personal income tax, and no sales tax, and the
only business taxpayers are foreign banks and foreign energy companies. There
are however charges for services, and the government levies a 5% charge of the
annual rent of a property. It is important to understand that there may well
be tax levied in the UK however on your property income, and professional
advice is recommended for property investors.
Buying properties in Dubai by foreigners is
still in its infancy, and there is to date no fully regimented conveyancing
process. The only required document is a sales agreement, which is legally
binding once it is signed. For this reason, and to avoid any pitfalls, it is
essential to appoint an English speaking lawyer who will guide you through the
process. If you are buying off-plan in Dubai, you will want to
ensure that your funds are protected by any potentially unscrupulous developer.
A Government run scheme ensures that developers pay 50% of the purchase price of
each property unit into a bond that guarantees the completion of the
development.
If you need to raise finance to purchase your
property, there are now a number of financial institutions in Dubai who offer
mortgages to non-resident property investors, and the market is very
competitive. If you are buying off-plan, most developers will have finance
package deals available. Be aware that Dubai banks won't take possible rental
income into account when granting a mortgage.The lending criteria vary from
lender to lender, but in general purchasers can expect to get 80% mortgage on
the value of the property if they are resident in Dubai and 70% if they are
non-resident. The mortgage term is usually for 20 years and must be paid by the
borrower’s 60th birthday and finance arrangement costs are around 1.5% of the
amount borrowed. A properties sell very quickly, it is advisable to have your
finance in place before proceeding.
The only other costs of your property purchase
will be a small transfer cost of about 1.5% of the purchase price, together with
lawyers’ fees. Service charges are often involved in a purchase, and these must
be detailed in full in the sales and purchase agreement. If you are
buying off plan, then you will be asked to pay an initial deposit between £1,000
and £3,000. A purchase contract is then drafted, detailing the payment schedule.
Normally 10% to 20% is payable every three months until completion. If the
property is sold on prior to completion, then a transfer cost of about 2% is
payable. If you are buying an existing property care is needed, as the central
land registry will have no record of any previous ownership to confirm the title
deed to the property. A lawyer should be appointed to check out the position. In
most cases, a property purchaser and their immediate family will be issued with
permanent residence visas by the government when they buy.
Tourism and Entertainment – There is a lot to see
and do in Dubai. The modern side, with its skyscrapers has excellent nightlife,
with cocktail bars, themed bars, wine bars and typical British or Irish pubs.
Food and entertainment is of a high standard, with international singers and
dancers. In contrast there are historical sights to see by day in Dubai. One key
landmark is Jumairah, home to the famous mosque. In the old part of Dubai, Al
Bastakiya, there is an interesting museum in Al Fahidi Fort. For shopping
enthusiasts, there are the souks (markets), notably the spice and gold souks.
Burj Al Arab is a world renowned luxury hotel, which is a landmark itself with
its unique billowing sail design, which stands out in the city. Then there are
the mosques and wind towers (these were structures that allowed people to cook
their buildings, allowing warm air out and cool air in). There are many
activities and sports to do in Dubai. Camel racing is a particular Dubai
speciality. You can also indoor ski, go boating, watch the UAE Desert Challenge
motor race in November which runs from Abu Dhabi to Dubai, or play golf or
tennis.
History & Culture - Archaeological finds
indicated that humans have been living in the United Arab Emirates area since
3000 BC. Many countries have been involved in the development of the area,
including the Portuguese who in the late 16th century tried to control local
trade. The British gained control of the region’s waterways in 1766. In the 19th
century, as part of a plan to secure trading routes with India, the UK signed a
number of agreements with individual sheikhdoms in the Gulf, giving rise to the
creation of the Trucial States, covering much of today’s United Arab Emirates.
Oil was discovered off the coast of Abu Dhabi in 1958, which brought great
wealth to the area. The British withdrew from the region in 1968 and the
sheikhdoms formed themselves into a loose federation, and three years later in
1971 the UAE was born with Dubai the seventh, and second largest emirate.
Dubai was once a quiet town of coral-and-gypsum courtyard houses built by
Persian traders. Bedouin fishermen and pearl divers lived there, and old Dubai
had wind towers and mosques, some of which remain today.
Population Demographics –
The Supreme Council, which is the highest federal
authority in the UAE, is made up of the hereditary rulers of the seven emirates.
Between 1971 and 1996 the UAE worked under a provisional constitution, which was
renewed every five years. In 1996 the seven emirates formalised the constitution
with Abu Dhabi as the capital. Dubai has been ruled by the al-Maktoum dynasty
since 1833. Sheikh Mohammed bin Rashid al-Maktoum is the current hereditary
ruler and his administration comprises family members. No power is given to
Western expatriates. Dubai offers a stable political environment with a
respectful population that poses little or no prospect of unrest. Dubai is
an Islamic country, with a population of 1.4 million. 75% of the Dubai’s
population are expatriates, most of whom are Asian. Non-Muslims are allowed to
drink alcohol and to keep to their own dress codes and lifestyles. There is no
free state education for non-UAE nationals. Most schools are private fee paying
schools, often with high fees, but educational standards are high. There are
strict rules about when new children can be admitted to or leave schools during
the academic year, which begins in September each year. Dubai has a national
free or very low cost healthcare system for its nationals and now for
expatriates too. Although waiting lists are never long, some specialised
treatments may not be available and consequently some of the richer inhabitants
travel to the UK or USA for treatment. Hospital and doctors surgeries are of a
high standard in Dubai. There are also a number of private hospitals with first
class standards. Dubai has a very low crime rate, and an effective police force.
Punishments are severe, which act as a deterrent, and alcohol and drug related
offences are considered serious.
How to Get There -
Dubai International airport is the busiest airport in the Middle East. Flying
from the UK to Dubai takes about 7 hours and the city is 4 hours ahead of UK
time. There are a wide variety of airlines servicing Dubai, including British
Airways, Virgin Atlantic, Qatar Airways, Air France, Royal Brunei, Gulf Air,
Alitalia, and Dubai’s national carrier, Emirates.
