The UAE, and Dubai in particular, are known for being cosmopolitan realms where individuals and corporations can meet the rest of the world in one unique, central hub.
They are also renowned for offering some of the best yields in the global real estate markets, with Dubai having an annual yield rate of between 6 and 9 percent, compared to the 2 to 3 percent average global yield. Even top ranking cities such as, London only have rental yields of about 3.5%.
In recent decades, Dubai has crafted a name for itself as one of the most visited cities in the world behind only London, Paris and Bangkok and it has become an increasingly popular market for buy-to-let property investors.
This blog will explore some of the factors which have led to Dubai’s amazing real estate yields and also touch on real estate laws and regulations.
Dubai – Business Hub
The economy has diversified from oil, with support from the emirate’s government, who have supported many initiatives including Expo 2020, the
Dubai International Finance Centre, and through the strategic building of infrastructure and transport.
Dubai’s Growing Population
The UAE Population in 2019 is 9.68 Million with 72% of these being male, more than 80% from an expat community not native to the UAE, and an average age of just 33.
Dubai is the emirate with the largest population at 3.32 million people, and also has the fastest growing population.
These demographics have had a profound effect on the culture of the UAE and have influenced laws, regulations and government strategies.
Dubai Property Prices
Dubai’s real estate market showed that off-plan sales recorded a strong 21.1 per cent year-on-year sales volume growth in the past six months, while ready-home sales volumes rose 8.5 per cent. Price corrections have helped to stabilise the market after the 2008 financial crash, while also ensuring that yields for buy-to-let investors remained higher.
Dubai Property Regulations
The emirate strived to maintain buoyant markets after 2008 through the introduction of tighter regulations for investors and renters.
These include mortgage caps, lower registration fees and government sanctioned build projects.
There is also a central database governed by Dubai Electricity & Water Authority & Dubai Land Department (RERA) – known as Ejari, which manages all real estate registrations. It provides a full portfolio for rentals from initial registration to transfers, bills, complaints and so on.
There is also help and advice available for overseas purchasers through government sites such as the UK.gov site. These can give advice on legal implications and regulations in connection to real estate, including visa requirements.
The majority of problems occur when an overseas purchaser has not followed specific requirements in connection with real estate. Remember that only lawyers who are Dubai nationals can represent you so always look for a local lawyer.
Opportunities for prospective purchasers are abundant and look set to increase as Dubai’s popularity soars.
This is an accredited course, worth 2 points towards CLPD, offering interactive sessions which introduce non-real estate, or newly qualified lawyers, the chance to find out about the following: