Dial “d” For Dubai – A Haven For Property Investment

2008-10-17 Word Count: 581 Category: Real Estate

Financial institutions are changing from being “transaction specialists” to becoming “relationship managers” – experts and counsellors in an expanded set of complex areas such as tax and retirement, general planning, and estate planning. High net-worth clients and the mass-affluent market are migrating to firms that can articulate and deliver world-class advice and guidance. The fact is that there is more money flowing today than there ever has been at any time before. High net worth individuals are awash with wisdom in investment opportunities, and thus, they are becoming richer by the day.

Where is the high net worth individual investing? One of the popular investment targets is "offshore". What does this mean? It simply means investing in a country which is other than the one in which you reside. What are the motivations behind investing offshore? Countries with low taxes (or, better still, no taxes) are the most frequently targeted zones for foreigners, for both personal or corporate investments. The investments made are in stocks, bonds and securities, and real estate ownership. Legal and taxation laws are often unique for foreign investors, whether investing as an individual or as a business.

Following the stock market crash that occurred in 2001, and the slow recovery that followed, many of today's high net worth individuals are now wise enough to spread their investments out into many baskets rather than one only, after suffered tremendous losses which it has taken them considerable time to recover from. Spreading the risk across numerous investments is now seen as the number one way to make long term gains.

A method of foreign investment which is as popular as ever is to invest in properties abroad. Dubai has been targeted by investors looking to cash in on the Dubai real estate gold mine. It is one of the most exciting and lucrative investment arenas the property market has seen in recent years. Here are some of the reasons why. Sheikh Mohammed bin Raschid al Maktoom made a conscious decision to develop an economy for Dubai that is independent of oil revenues. In doing this, he has also generated some of the most iconic architecture seen by man in the modern times. This fast growing city offers year round sunshine, outstanding leisure facilities, and a growing economy that makes Dubai one of the most desirable investment centres on the global stage.

Some of the primary reasons for investment in Dubai are:
• Dubai is a politically stable environment with a strong, stable economy.
• High capital appreciation can be expected of at least 15% to 25%.
• Owners can expect high rental yields in completed properties.
• As a tax free country Dubai has no capital gains tax or tax on rental income.
• As the international business hub of the Middle East, Dubai is becoming an important player on the world stage.
• An expected increase in population, due to workers needed to service new industries, will maintain a strong future demand for property.
• The demand supply ratio is well managed to ensure strong growth and returns. • Properties are very affordable by international standards.
• The quality of finishes is consistently high with facilities such as gyms and pools in all complexes.
• With the construction of entertainment facilities such as those envisaged for Dubail and, Dubai is fast becoming one of the world’s most significant leisure destinations.
• Dubai is a cosmopolitan, global business centre with luxurious facilities and incredible beaches.
• An excellent infrastructure is under construction alongside the building programme.

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If all of this Dubai information sounds too good to be true then just check any Middle East news website and compare the tones of the business reports with ones currently associated with UK and USA markets. You will find they are much more positive about what the future holds.