Investment & Relocation

Voted as one of the world 's best holiday destinations and recognised as the gateway to the Gulf, Dubai is located at the crossroads between the East and the West, with scenic beauty, a modern infrastructure and a vibrant lifestyle. It draws over four million visitors each year.  

It has been a civil-engineering miracle turning this 25-mile coastal strip of desert in the United Arab Emirates into a world city, and whole areas continue to be developed within a matter of months.

It now has 30,000 hotel rooms, more that 80,000 private properties, 30 amazing shopping malls, and over 5 million visitors a year.   The airport handles 100 airlines with 145 routes, and it is being expanded to handles 60 million passengers a year.   Over 2,600 companies have bases in a tax-free zone near Dubai 's downtown area.   The nearby Internet City hosts regional offices for Microsoft, Dell, Siemens and IBM.   This has resulted in more than 80 per cent of Dubai 's 1.5 million residents being from overseas, many from Britain.

New property laws in Dubai, allied to a massive growth in tourism, have led to huge investment in the property market in United Arab Emirates. With impressive new buildings, the biggest theme park in the world, a friendly city with low crime, all-year sunshine and outstanding levels of services, it is one of the fastest-growing cities in the world today.

The government of Dubai has opened up the doors for the purchase of freehold properties in approved projects in the region. The registered purchasers will be entitled to a residence visa for their whole family, to be issued by the Dubai authorities under their standard conditions.

The booming real estate market in this cosmopolitan city has made Dubai one of the most important real estate hubs in the world. There is a wide range of properties to choose from - with unparalleled features in each of them. The government is behind the real- estate boom, and has secondary motives such as attracting wealthy immigrants to the city. As a result villas and apartments are being sold very cheaply.

One way you can judge if real estate is cheap is to look at the yield, or rental return. In the case of Dubai a basic yield of 10 per cent on residential property compares with a 6.5 per cent local mortgage rate. In London three to four per cent would be considered a good yield today, so 10 per cent implies a considerable undervaluation of property.

Indeed, the problem is rather the reverse in Dubai. The supply of property is not keeping pace with demand.

Property Purchase

In May 2002, the Crown Prince of Dubai, Sheikh Mohammed bin Rashid Al Maktoom, issued a decree allowing foreigners to buy Dubai property on freehold ownership. This sparked the real estate boom in Dubai residential property. But it can be difficult for non-residents to obtain a mortgage and it is not unknown for them to put down a deposit on a property only to find that they are unable to obtain finance for the rest of the purchase price.

 Also keep in mind that many lenders will only lend up to 70 per cent of the launch price of the property and buyers may be expected to put down a deposit of around 50-60 per cent of the property's market value.

© Madinat Jumeirah

You Need to Know:

Freehold property in Dubai is limited to the Sheikh Zayed Road and Jumeirah areas. Currency: Dirham.

Language: Arabic and English.  

Government: Abu Dhabi.

Health: Private insurance.

 CASE STUDY ' DUBAI

Alex Dunga and his wife, Charlotte, moved to Dubai back in 2002. It is as Alex says: 'wonderful '.

The schools are of the very highest standards, crime is very low and there is a very active social life on offer for those who wish to take part and best of all, there is no income tax.

There are many English-speaking kindergartens, particularly in the residential areas of Jumeirah and Umm Suquiem and full-time education is compulsory for all children above the age of five. The schools take children from age 5 to 11 and are based on the English school system and curriculum. They are inspected and reviewed every year by OFSTED inspectors.

Dubai, however, is an expensive city. 'If you are negotiating a package before moving out to Dubai, keep in mind that the cost of living for a Western expat is at least as high as it is in Central London, ' said Alex.

Families still tend to live in villas, either bungalows or two-storey buildings, which are often part of a compound.

Winter sunshine averages eight hours per day, while the summer figure reaches as high as 11 hours a day.   And while much is written about the fierce heat of Dubai in the summer the fact remains that for eight months of the year the climate is perfect.

On the downside Dubai has one of the highest motor accident rates in the world per head of population - perhaps because cars are tax free and cheap to buy. Petrol is also very cheap despite a 30 per cent increase in July 2005. A litre costs about 11p.

© Grosvenor House West Marina Beach

There are a number of private clinics and hospitals in Dubai offering a very high standard of healthcare. Private health insurance is a must for all expatriates.

Cinemas screen the most recent films though any scenes with nudity and anti-Islam content are cut. Most expats join a club soon after they arrive. These clubs tend to be part of a hotel and offer swimming pools and other sporting facilities.

Dubai is not an alcohol-dry Emirate (Sharjah is the only Emirate that is) though the consumption and purchase of alcohol is controlled.

Ramadan is a wonderful time in Dubai, it is a time of family and friendship, putting the past behind and starting afresh. It is a good opportunity for expats to visit their Muslim friends and business partners to reaffirm friendships.

If you are moving to Dubai to live bring lots and lots of passport-size photos (at least 30) of you and any family members. Initially Dubai can seem a bureaucratic nightmare with permits and licences required for absolutely everything to start life and every single application must be accompanied with at least three photos.

Unmarried couples are not permitted to live together by law. While the police tend to turn a blind eye to such behaviour, if in the course of investigating a burglary, for example, it becomes apparent to the police that an unmarried couple are cohabiting quite severe punishments followed by deportation can be imposed.

Girls should dress modestly. Whilst it is sometimes easy to forget that you are living in a Muslim country you should remain sensitive to local cultural issues. Always register with your embassy when you arrive.