Q. How far is Abu Dhabi from Dubai? A. The capital of Abu Dhabi is approximately 140km away from the center of Dubai. It takes around 1.5 hrs by car to reach.
Q. Why should I invest in Abu Dhabi? A. Abu Dhabi is not only the capital of the United Arab Emirates but also the wealthiest. The sovereign wealth fund of the emirate is estimated to exceed $ 1 Trillion. The emirate has shown strong economic growth and structural reforms over the last year.
Q. Who are the most trusted developers? A. The most reliable developers are considered to be Sorouh, Aldar, Green Emirates Properties and Tamouh. Most of their projects are under construction. The government holds majority stakes in each of them.
Q. Can I get finance? A. The major banks up to 90% finance Most of the projects of the government developers. This rule applies despite the recent financial crisis. However the maximum finance is available only to UAE residents.
Q. When are the first developments scheduled for completion? A. The first apartments in the designated investment area of Al Reem Island are scheduled for completion for end of Q4 2009.
Q. Does Abu Dhabi have a Land department regulating real estate transactions? A. No. For the time being the properties are under development and the transactions are registered with the respective developer.
Q. Do I have to pay tax on my capital gains in case I sell my property? A. Abu Dhabi does not apply any capital gains tax on profits made through the sale of properties. There is further no income or VAT tax in the emirate.
Q. Are delays in construction likely to happen? A. Delays can never be totally excluded. However bottlenecks in commodity supply is a little less likely in Abu Dhabi as the major developers closely cooperate with the top contractors. As per latest media releases the construction process is on schedule for AL Raha Beach and the first phase of Al Reem Island.
Q. How much is the average price for a 1 BR apartment on Al Reem Island? A. The average price is around AED 1.8 m for a big sized apartment of 900sqft. Most of the apartments are sold on the net area.
Q. What is the current and mid term supply-demand scenario like? A. Abu Dhabi is growing at a far faster rate than it can produce sufficient new housing. The market is expected to stay undersupplied through 2012.
Owning a residential property in Dubai is still a high priority on a lot of peoples list.
Why is this?
Dubai is still a relatively young real estate market. Many expats living in Dubai have seen many changes from 2002 when investors and end users had the opportunity to finally by freehold property that they could own and live in or, buy and rent out. The changes that we have seen have been very dramatic, prices increases went to levels around 200% leading up to 2006. Speculators within the UAE and also outside the UAE have driven this increase predominantly.
The global financial and real estate markets now seeing a shift in the market due to troubled times foster us. Dubai still provides a strong and most importantly a politically safe haven financially that is both stable and affluent. In keeping with Dubai's excellent central geographical area and the foresight of the leaders in Dubai the area is host to many Iconic buildings such as the world's tallest tower in the Burj downtown area and luxurious places to live in such as the Palm Jumeirah.
Dubai is a multicultural melting pot, which is a springboard to many other countries. This in itself is very attractive.
Many factors should be a concern for all who want to buy and sell property in Dubai and these need to be taken into consideration when setting out on the path to owning a solid asset.
What is your liquidity level? In other words how much can you easily afford? When coming to this conclusion one should then consult with a reputable, professional agency that will give you non biased, informative information and guide lines.
The individual requirements and personal needs will take presidencies, such as marital status. Many married couples would prefer to be in an area that has a community feel with schools and shops close by. The most common areas would be ones that have many townhouses and villas with gardens and pools attached. The younger majority prefers areas that are both vibrant and have many exclusive coffee shops and boutiques such as the Burj Downtown area where one can buy a 1-bedroom apartment for around 2.9 million to 3 million. As Dubai grows we are seeing a greater number of cars on the road so location to place of employment should also be a major deciding factor. With the Metro to be in operation next year 2009 savvy investors or homebuyer will buy close to the metro stations. It is a common fact that if you buy anywhere in the world that is close or near a station the property price is increases. You only have to look at places like central London and the property prices close to the underground tube stations.
When looking for affordable housing such as studios are apartments Dubai silicon oasis is a great opportunity where you can buy a 2-bedroom apartment for around 1.2 million. International city also has many affordability options with studios ranging from around 500 AED up to 1.3 for a one-bedroom apartment.
When considering buying property in Dubai one must remember that if you where to buy a principle place of residence anywhere else in the world you would not gain a greater yield of capital investment return as you would in Dubai.
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