In 2012, the Forbes magazine ranked Dubai as the second hottest property market in the world displacing Honk Kong from that slot. The year 2013 is witnessing a drastic spurt in home buying across Dubai taking the city’s global rankings ahead of Hong Kong again.
Past and Present
In the past one decade Dubai property market has seen many cyclical changes. Some 3 years ago, prices were at pit bottom after the drastic fall in house prices. Before that, from 2002 and 2008 there was a sharp increase in Dubai property prices.
During that period, many new projects were launched including the Dubailand, The Lagoons, Jumeirah Garden City, Palm Jumeirah and the World with a total cost of US $ 212 billion.
In the 2008 – 2009 period, Dubai fell victim to the global credit crunch. Mortgage institutions stopped lending and half of the construction projects worth US$582 billion were put on hold. Foreign investors disappeared from Dubai, signifying the reality of the credit crunch. As market conditions stiffened hard times in the property market of Dubai started making the pinch.
Now fast forward to November 2012. A drastic recovery in the housing market started becoming visible as residential prices surged by 18.89 percent. The sale prices of apartments jumped by 11.5 percent while those of villa surged to 23.7 percent. The high demand for prime real estate in Dubai in first three months of 2013 saw property prices rising to 6.3 percent.
Know Dubai Better
Any prospective property buyer must know the Dubai City inside out. It is divided into two regions–Bur Dubai and Deira Dubai. The residential development happens more on the western side of the city with greater access to the city centre and beaches.
While purchasing properties– apartments, villa or land a buyer should stick to Ownership laws and Property laws. Under the law, there are certain restrictions on foreign buyers in buying property in certain areas. A buyer should also understand that Dubai property laws allow both freehold and leasehold property ownership. In purchasing a property, one can also obtain a mortgage.
Online Source for Property
In Dubai, property taxation is non existent. However, foreign residents have to pay taxes such as Inland Revenue, Capital Gains Tax and Inheritance Tax. All potential property buyers must visit classified website like oforo.com for locating suitable properties in Dubai.
City of Opportunity
Property market in Dubai has always been fascinating and profitable too. Top class real estate companies in Dubai always offer world class projects and attract buyers from all parts of the world. No doubt, Dubai Real Estate will continue to ooze charm thanks to the progressive property laws and its strategic geographical location as a lucrative destination.