Dubai Real Estate and its Economy
April 17, 2010 by admin
Filed under Tourists Attractions
Dubai is emerging as the one of the most important cities of the world. The city’s gross domestic product was calculated at $46 billion in 2006. Dubai’s economy is backed by rich oil deposits, which was discovered in 1960’s. Since then the city is making its mark and making considerable progress in other sectors as well. According to recent reports, oil constitutes only 10% of the city’s total GDP, which shows the increasing shares of other sectors too. Areas including manufacturing, tourism, finance, and information technology are also developed rapidly in the recent years.
Manufacturing has been a significant role in Dubai’s economy. It homes some of the major industries including rubber, beverages, chemicals, paper and pharmaceuticals. Multinational corporations including Sony, Heinz, IBM, Shell, General Motors and AT&T have their corporate offices in Dubai. Major financial institutions and firms establish their working office Dubai. It is estimated that the growth rate of the financial market is around 12 percent per annum and likely to continue at the same pace. Moreover, banking sector also looks promising and showing positive growth rate in Dubai.
Tourism sector has a pivotal role to play in Dubai’s economy. The increasing attractions and activities have encouraged millions of people around the world to visit the city. Growing number of luxurious hotels, skyscrapers, shopping malls, water parks and museum have given a competitive edge to the city.
Dubai Information Technology market has grown rapidly in the last few years. The government has built the Dubai Internet City to give priority to information technology companies. The government has also provided tax exemption and 100% foreign ownership to many multinationals to attract foreign investment in Property Dubai.
Investing in Dubai Real Estate
August 8, 2009 by admin
Filed under Tourists Attractions
The Dubai real estate market has experienced tremendous growth over recent years, and this is all the more notable considering that the traditional real estate fundamentals are not what this particular market operates on. Many people are therefore wondering about the explanation for the bust that the Dubai real estate market is set for. Population growth may be a sound explanation, considering that Dubai’s population is about three or four times bigger than that of other developing countries all over the world. The capital appreciation in the Dubai real estate market could also be justified by the high yields that investors achieved, both for short-term and long-term rentals.
Many investors are attracted by the opportunities that the Dubai real estate market provides. Shortstay renting is probably the most profitable way of producing money from Dubai real estate, because the rather high average rates that Dubai hotels charge per night have determined tourists to start looking for other options, such as a Dubai apartment or villa.
Probably the best thing about the Dubai real estate market is that there is no tax on property transactions. In fact only the ones subjected to taxes are the oil industry, the banking sector, and the cigarette manufacturers. Under these circumstances, it’s only understandable why many investors want to have their own share of Dubai property.
Being the owner of Dubai property comes with a series of advantages, such as being able to apply for residency. Furthermore, foreigners who want to purchase Dubai property are not required to have a bank account in this emirate. The transaction itself is far from being complicated, but you should definitely consider seeking legal counsel before the transaction, and legal representation during it, given the vague nature of Dubai property transactions.
Dubai property prices have been increasing considerably over the past few years, since 2002, to be more precise, when foreigners were allowed to purchase properties in this emirate. The reason for this appreciable increase was the intense demand that the Dubai real estate market has been experiencing. However, Dubai real estate can still be profitable, provided that investors know exactly what to invest in and what to do with that piece of property. Different people are interested in different types of real estate, and understanding the market from this point of view is one sure step towards success. For instance, completed apartments and family villas are in high demand for long-term rental.
All in all, long-term profit form the Dubai real estate market is possible, but it comes with certain conditions. Although this market is hardly similar to traditional and more conventional real estate markets, there is one aspect that is true for all real estate markets alike, including the Dubai one: profit from property purchase requires thorough research prior to the actual investment. Those interested in purchasing Dubai property will definitely benefit from using the information available online about the Dubai real estate market.
For more resources about Dubai real estate or even about Dubai property please review this weblink http://www.dubai.com.au
