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Dubai is one of the fastest emerging cities in the world, and its popularity among Britons looking to retire, or buy a second home, has made it an ideal ‘place in the sun’, according to the international realty developer, Dubai Properties. Over 100,000 Britons have purchased homes in Dubai since the start of the property boom in 2002. Dubai is competing with Spain & France in the second-home market, with both countries accounting for over 35% and 24% of British homes overseas. |
Fahad Al Gergawi, Director of International Relations, Dubai Properties says: “British investors are keen to invest in Dubai because of its tax free status, low crime rate, excellent services and enviable lifestyle. The sunny weather, of course, is another favourable factor in the equation, particularly when you take into account winters in the UK.”
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“A UK resident would ideally like to live in individual houses, preferably with a small garden for the children. It can be a beachfront or a unit in the desert. It’s not where the unit is but what the unit is,” said Al Gergawi. As per the statistics issued by Dubai Properties, some 24.2% of buyers of Dubai Properties’ projects live either in Dubai or the UK, and are British citizens. |
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At one time, Dubai used to be the perfect investment for speculators looking to make a quick profit. Capital appreciation has risen between 15 to 20 per cent annually, making Dubai the ideal place for investors with disposable income. However, the current market trend favours only people looking to own a home, or for people seeking healthy and steady investment returns both from the resale market and high rental yields on completed properties. Rental yields in Dubai are around 7 to 10 per cent, while in the UK they average around three to four per cent annually.
A key factor in the recent popularity of Dubai as a second-home investment is the Freehold Property Law, issued in March, 2006, which granted non-GCC citizens the right to purchase freehold properties in designated areas. The inclusion of Dubai Properties’ key master communities in those designated areas added another dimension to the master developer’s offerings. Business Bay, Culture Village, The Villa and Jumeirah Beach Residence have all been included in areas designated as freehold by the Government of Dubai. This move is viewed as a morale booster to investors as well as homeowners as it ensures that their rights are protected by legislation.
