As the saying goes, special situations bear special opportunities.
Property prices in Dubai have witnessed a decline during the past four years, making luxury Dubai property significantly cheaper than in peer cities. In figures: An investor buying a luxury property in Berlin will have to shell out 79,23% more per square metre than for a comparable real estate asset in Dubai (Knight Frank PIRI 100 Index 2017).
On the 20th. of May 2018, the UAE government announced major legislatory reforms which will have profound impact on Dubai`s property market specifically as well as the UAE as a destination for foreign direct investment (FDI) as a whole.The new laws, anticipated to come into force by the end of 2018, will provide for visa to be granted to highly skilled professionals for up to ten years to as well as to allow 100% business ownership everywhere in the UAE for non-nationals.
The Dubai Land Department (“DLD”) as the Emirate`s governing body overseeing property transfers now also allows for registration and execution of so-called deferred sale agreements. Such agreements describe a particular ownership transfer of real estate assets where the ultimate transfer of title remains pending until all deferred considerations as per the contract have been settled.
Since the enactment of the Dubai International Financial Centre`s (DIFC) pertinent REIT regulations in 2006 the DIFC has allowed the creation of REIT trusts or corporations within its perimeter. As DIFC-based property funds and REITs are now considerably gaining in investors` interest, it is time to take a closer look at the determining factors and available options. Dubai`s DIFC has established itself as the region`s prime financial jurisdiction, offering a robust common law legal framework and thus becoming the domicile of choice for many property fund structures.
In light of the retreat of rental prices witnessed since Dubai`s real estate market peaked in mid-2014, many observers have uttered concerns in view of developers continually announcing new projects, ostensibly paving the way into substantial oversupply and an aggravated price slump. With recently revised supply projections and population figures now at hand, the goal of this article is to analyze the supply and demand dynamics at play in Dubai`s property market from now going forward.
With the rental index having legal implications for possible rent increases in the renewal process of existing contracts, the purpose of this contribution is to provide you with strategies strengthening your negotiating power as well as to familiarise you with the methodology of the index computation.
Starting from 1st. of January 2018 and in line with other GCC countries, the UAE is to implement a Value Added Tax (VAT) amounting to 5% on most goods and services.
This article is therefore aiming to highlight the regulations as far as they are relevant to a real estate investor and to identify possible repercussions that the changes hold for the market`s future evolution.
Bitcoin and other cryptocurrencies like Ethereum and Litecoin have witnessed an unprecedented growth in media-related attention.This went along with the sextupling of the Bitcoin`s exchange rate in US-Dollar since the beginning of 2017.Substantial price gains and a spreading utilisation of cryptocurrencies thereby nurture the user`s natural desire to utilise their virtual money for the acquisition of tangible assets like precious metals or real estate.
Offering political and economical stability, double taxation treaties with more than 60 jurisdictions worldwide besides an environment that is free of income and corporate taxes (exceptions are few), the United Arab Emirates (UAE) exhibit some generally desirable strong points for the set-up of estate and succession planning solutions.
Independent of one`s actual primary country of residence, it can make sense to hold other options available for a variety of reasons. Whether it is for simple means of comfort (hibernating in warmer regions in winter), facilitating business in a foreign country or region or preparing for an envisaged expatriation – the reasons are as diverse as they are personal.
With comparatively high yields on property in Dubai the option of taking up a loan and purchasing the property instead of renting can make good sense.In this article I would like to address the must crucial aspects within the property mortgaging process that you should be aware of and carefully take into account. I will address the points that I deem to be relevant in the chronological order that they are to be tackled while going through the process.
In 2016 Dubai`s property market has seen a correction of rental prices in all sectors and segments, a tendency which seems to persist throughout 2017, primarily caused by increased new property delivery during a time of subdued demand on the back of macro-economic factors. In this article I will be going into some more detail highlighting the market dynamics at play and what to expect in the mid-term from an investor`s point of view.
Embedding real estate assets within corporate structures has been practiced for years for a variety of reasons.Whether it is to shield assets from the owner`s private sphere and thus contain i.e. liability risks, whether it is to pass on assets to certain persons or legal bodies possibly bypassing succession laws; reasons are diverse and go well beyond the regularly-cited tax evasion.
Since mid-2014, hoteliers in Dubai have been going through tough times. The completion of substantial new hotel room stock came in baleful synchrony with the oil price crash, the Rubel depreciation and Dollar appreciation. All this weighed heavily on the tourism demand from Dubai`s most significant source markets, thereby substantially decimating the hotelier`s revenue figures.
In this article I would like to present you with an investment and management approach with which the proceeds from attractively situated apartments in Dubai can be boosted by approximately 20% – 45% under realistic assumptions vis-a-vis conventional letting.The strategy takes advantage of the fact that Dubai registers by far the largest per capita tourist expenditures in the world – 106% more than London coming in second – while occupying fourth rank in total international tourist arrivals with a strong upwards trend (Mastercard Global Destination Cities Index).
Build-to-Suit denotes an investment strategy which is particularly appealing to institutional investors in Dubai today, primarily because it has – if well implemented and transacted – the potential to combine highly attractive rental returns on real estate assets while effectively confining the involved risks.
With Cityscape convention – the Middle East`s most influential real estate exhibition – now in full swing, I would like to take the opportunity to cover some considerations to be made by any investor considering to buy into off-plan real estate in Dubai.Seeing two years of price declines behind us and the „Expo 2020“ effect fuelling prospective demand, the present market situation indicates a good outlook for off-plan properties scheduled for completion before the year 2020.
Since the opening of the Dubai property market in 2002, there has been a plethora of predominantly constructive changes regarding the regulation of the Dubai property market, its players and their transactions.The latest move by the governing body RERA as well as a ruling issued by the Dubai Court of Cassation are well worth noting as they both clarify and enhance the rights of purchasers invested into off-plan property in the Emirate of Dubai.