Buying property in Dubai

ioscorpio

Taken from https://www.internationalliving.com

A Cautious Look at Dubai

If you haven't heard by now of the amazing property boom taking place in Dubai, you must be living on another planet.

Six years ago, the opening of the world's only seven-star hotel--the Burj Al Arab--put this previously little-known country firmly onto the map. Today, this nation of just two-million inhabitants (of whom only 200,000 are locals) is experiencing a boom comparable to that in lower Manhattan during 1870-1910, when office buildings shot up higher and higher, competing for stature against the backdrop of the New York skyline.

New real estate developments in Dubai are often sold within hours of the official release, partially because foreign investors want to grab a piece of the action before prices spiral upward even further. This is a worrying sign...a sign of a serious bubble...and investors should keep in mind that the market here is suffering from one glaring inconsistency: the lack of a federal real estate law. In other words, if you buy here and if you run into legal complications, you won't be able to rely on precedents to resolve the conflict.

And if you ever consider moving here, you'll need to keep in mind that Dubai is culturally very different from the West. Just recently, for example, a British woman was jailed for eight weeks because she treated her back pain with a British prescription drug that is banned in the United Arab Emirates (of which Dubai is a part). You can read BBC coverage of that story here.

International Living is adventurous when it comes to seeking out new places around the world to invest profitably or to live happily. But Dubai, for the time being, looks like more of a holiday destination than a place to buy property. Can be an interesting place to visit--but make sure you don't have any banned prescription drugs in your suitcase.

purplefirth

I lived in Dubai for 4 years back in the 90's. Trust me its a great place to visit if you like mass construction sites but I would never buy property there. Also lived in Oman, now that completely different. A very beautiful and varied country that has a lot to offer. The pace of life is also slower as opposed to Dubai's 24/7. Still if you like city life head for Dubai if you prefer culture and a slower pace head for Oman. I know where I would go.

HeMan_3

there is a property expo for dubai this Sat/Sun at the hilton near heathrow I think

purplefirth

If anyone out there is seriously thinking about buying property in Dubai then make sure you know what the surrounding area is like and what construction is likely to take place because honestly it NEVER stops.

EdInvestor

Not often mentioned but an absolute necessity IMHO is to make a thorough investigation of the immigration rules and history in any country where you might fancy buying a property but don't have an automatic right of residence (as in the EU).

Imagine if you sank a load of money into a holiday home and then the country restricted foriegners to a 2 week visit per year. Or banned you completely from entering the country. :eek:

It's not unknown for immigration officials to take bribes and for laws and visa regulations to be imperfectly enforced and for foreign investors to be seen as undeserving rich types just asking to be ripped off...

Forewarned is forearmed.

citygal

I have just come back from working in Dubai- life there is nice but property has risen in prices dramatically :eek: ! I have also worked in Muscat, Doha and Kuwait- I would invest in Doha (Qatar) right now as its Dubai ten years ago! Also property is cheaper than say Dubai which has already been saturated with people's investments- oh yeah salaries are also higher in Doha if u ever fancy working there