Buying property in Dubai- anyone done/doing it?

distilled

The oil in Dubai is fast running out and the country sees it's only option is to make itself the best tourist attraction in the world. Palm Island is not sinking, far from it! That is one of the most carefully researched and engineered projects in the modern world. 75% of the cranes in the entire world are in Dubai at the moment, and I dont mean birds!

This is the future "Spain" and I'm currently buying a piece of the action!

Of course I could be wrong but what the hell! I'll get a job selling houses over there

Halaku

From what I've read, Dubai is one of the few arab states that doesn't depend on oil revenue for income.

I thought the Dubai housing market was overrated overpriced and a bubble market, but If you're a housebuilder I'll shut up and take your word for it

knuckledragger

Thanks for all the opinions. I was looking at it more as a retirement venue in a few years time with maybe a little rental income in the mean time from friends/family. Strangely, the prices seem to have gone up since the Sunday papers were delivered! Now £185K for a 2 bed apartment. I'm starting to think that at these prices it's a bit expensive.

grebbo

I'm not sure I'd want to retire in Dubai - too hot for me!

It is a great place though. There's a lot of property completing right now so anyone buying there now should realise it's a long term investment - you're not likely to make quick money on it.

Selling property in emerging overseas property markets is my job - if anyone is thinking about investing overseas feel free to mail me and I'll send our web site address.

Something that people should make sure they do if investing overseas is check out the company they're buying from - go to their offices, check out their set-up, make sure they're not some fly-by-night. I'd also say you're better off buying from an established UK company as it's very easy for an overseas company to ignore you if something goes wrong! (I'm biased though)

Tassotti

All good points. Especially like the signature from the agent.

185K for 2 bed apartment?!?

As said before, money not to be made anymore. Remember the times when it was about 50K for a 2 bed apt.

Bubble, bubble, wheres that pin?

However, if your plan is to retire there, I think it is worth a punt. If you are not dependant on rental income financing the loan, go for it.

As aforementioned, research thoroughly,m pick the right place for you and go for it.

Best of luck

Tass :j

JayC

Hi,

This is my first post, so I hope I can be helpful and not too long winded.

I lived and worked in Dubai until quite recently, and the big 'buy/don't buy' question arose several times whilst I was there. We spent some significant time looking around the various developments, talking to mortgage lenders and doing general research, including with friends/colleagues that had bought - with good and bad results.

Eventually we decided not to buy. There were several main reasons for this. We felt that some aspects of buying, including the number of restrictions on mortgages and resale rights (not to mention the whole 'freehold' issue) meant that we shouldered most of the risk and that the developers had none. We also looked at the rental market in Dubai, plus the growth and direction of the country and felt that it showed every sign of a bubble waiting to burst.

If you do decide to buy, you should be aware of the following:

UK/EU citizens can visit without a visa for 1 month (renewable for several more), but to live there, you need a residents visa, which will cost around £500/2 years each (costs may have changed since I last did it). You get the right to a residents visa by owning a property.

If you want to rent the property to an expat, you normally do it for a year at a time and get payment either annually or bi-annually by cheque.

Many of the properties are based out at the Jebel Ali end of town (any of those high towers other than the ones near Burj Dubai will be out there as will Lakes, Greens, Meadows etc; International City is off the Hatta Road going inland), and therefore you will have to brave the Sheikh Zayed Road and legendary Dubai drivers to get to the real Dubai (20km, up to several hours depending on traffic). Others, such as Arabian Ranches are based way out of town off the Emirates Road, a few km further.

One other thing to note if you need a mortgage is that the local providers (Tamweel, RAK Bank) used to only offer a mortgage to the off-plan price of the property. If you bought off a prior owner, any additional value would not be covered.

The dubaiselect.com site conveniently fudges some of these issues - they state that there is no tax and that anyone can buy, which is correct but not the whole story.

And, in answer to Grebbo, the weather should be pretty much perfect about now. July-September is when everyone leaves for the UK and our lovely summer!

Incidentally, we loved Dubai and would quite happily go back.

Hope this Helps,

Jay

gallygirl

Tassotti wrote:

Have researched the Dubai market...no quick money to be made any more...too many empty apartments..poorly built..Palm is sinking into the sea.

No locals can afford to rent the apartments

May be okay for long term, but no resale market to speak of yet.

Some developers giving away free Jaguar cars to try and sell.

Bubble set to burst IMO

I agree with Tassott1. 1st went there 4 years ago, should have bought then but scaredy cat. :wall:

Since then prices and number of developments have risen dramatically. I think (IMHO) bubble at bursting point. No locals can afford to buy and ex-pat market doesn't appear to be growing as fast as number of properties.

As for retirement - greta place for holiday, not to retire to. No interaction with locals - you'd end up mixing solely with expats and drinking way too much - would soon get bored to tears, or liver would pack up.

Also, I understand from expats and locals out there that there are still problems with the legal side of foreigners owning property - and Dubai is NOT a democracy - if the ruling family decide they don't want foreigners to buy that is what will happen.

If you want to take a risk I'd look eastern - Turkey, Poland, Hungary, China. If you want somewhere you can mix with locals, get support if letting out and make yourself a life - Spain (where we've bought).

If you want a punt on somewhere - Brazil is up and coming - get in early in its' neighbour - Uraguay. Perhaps....... but considering we can't agree on this site about where prices are going in the UK we probably shouldn't be let loose over the Channel!

knuckledragger

Thanks again for all the input. I think I'll hang fire on this. I hope things do turn out okay- my friend has just bought a place in Infinity Tower...