Openshore has been selling properties in Dubai for almost 8 years. Over the initial period we acted as estate agents, helping buyers purchase off-plan properties direct from developers. During this period we saw the Dubai property boom in off-plan property and then the subsequent crash in 2008. Many lessons have been learnt following the off-plan property issues in 2008 after which we stopped selling off-plan properties all-together. We could no longer rely on third party developers, many of whom let us down and also let our clients down by failure to build and by excessive delays.
The market has been fairly stable over past few years and is now beginning to rise again. Over this period we have focused on selling ready properties where we have total control and where we also provide the after sales management. Thus we are 100% responsible and liable for both the properties and the service levels. Our most popular products have been ready low cost Studio and 1-bed apartments that have been purchased by buyers as purely investment properties.
For other types of ‘own use’ properties and large Villas, we have still helped enquirers and where necessary advised them to deal with other reputable Dubai Estate Agents who specialize in their desired type of properties or locations.
It would be good to get views from visitors and clients on how we can improve our current product offerings and also our service.
Additionally, if you have already purchased from us, particularly over the past few years, and would like to comment on the pre-sales and after-sales service we have provided, please go ahead.
Why Some Customers want ‘Off-Plan’ Property
We are frequently asked about ‘off-plan’ or ‘under-construction’ property with good payment plans. Developers promote such properties at high prices but with the attraction of payment plans spread over 2 to 3 years. Currently such properties are typically premium 1-bed units costing over AED 1 million (£180K); or larger even more expensive properties for future own use. Due to the payment plans over 2 to 3 years, the properties seem affordable and good value to investors.
Whilst there are some good off-plan projects being launched, buyers still need to be careful.
‘Mohammed Bin Rashid’ City with World’s Biggest Mall
Last week a new city has been announced by Sheikh Mohammed – ruler of Dubai as follows:-
-It is called Mohammed Bin Rashid City
-It is the biggest Dubai project announced since the financial downturn of 2008
-The master developers will be Emaar and State owned ‘Dubai Holdings’
-This massive new city lies between developed areas of Business Bay, Burj & Meydan in the North and Emirates Road & Dubailand in the south
-The City will be over 5 square kilometres and will include Malls, Parks, golf courses, over 100 hotels and complete Residential Communities
-The main mall will be the biggest mall in the World (much bigger than existing Dubai Malls). It will be called “The Mall of the World”
New “Multiple Visit Visas” have been announced by Dubai Government this week. There are several types of new visas and these are of benefit to a range of cruise tourists, businessmen and property owners & their families.
6 Month Visit Visa for Property Owners
For ANY Property Owner the following benefits apply:-
-The visa will be for 6 months
-Property owners can stay for length of Visa (6 months)
-Dependents of Property owners can also stay 6 months at a time
-It allows multiple entries
-After 6 months a property owner can apply for another 6 months visa.
-Visa only allows residence – you would still have to apply for a work visa in order to work.
Reasons for Buying a Dubai Property
We often get asked to state the reasons why people purchase property in Dubai. Wherever, we discuss a property sale with a potential client, we always ask them to decide on the aims of their purchase and proceed accordingly – see below.
a. Buying for Investment
Most purchases are for pure investment and the property is never used by the owner. It remains rented out. The aim is to get maximum net rental income and capital growth whilst acquiring a property that will be easy to resell in the future. In such a case, the smaller and lower cost properties provide the best investment returns and these are the properties we recommend. If you have a larger budget – buy multiple lower cost properties rather than one expensive property.
Over 90% purchase a low cost (Studio or 1-bed) investment property. A good example is like our best seller 1-bed property – details of which are attached (1-Bed from £45.1k). Full price is AED 359K and rental income can pay for 25% of the property – so customers would end up paying about AED 271,000 (about £45,167) themselves. These offer about 8% net rental yield and come with rental guarantees. We would recommend such properties as the best for low risk investment.
You will remember in our “Dubai Property News” bulletin in April 2012 that we predicted significant price increases due to supply/demand we were seeing first hand in the property market (despite the corporate ‘analysts’ at the time still predicting further price reductions – their information is always out of date)
Our belief now is that the 2nd Dubai Property Boom HAS Started. And please remember – We told you this first!
Top 10 Questions About Dubai property
Here is a list of the most popular questions asked by customers looking to buy a low cost investment property
1.Why are prices rising in Dubai?
After massive drop in 2008/2009 and relatively stability for 3 years prices are now starting to rise. The 3 main reasons are:-
-Dubai Population Growth (50% increase in next 4 years)
-Massive increase in Tourism
-Return in confidence to Dubai
Click the link below to view the Panorama Map in your browser. Take a look at this AMAZING view
Dubai Panorama Map –The Burj Khalifa Pinnacle Panorama – Click Here
This shows you a 360 degrees view of Dubai from the very top of the Burj Khalifa. You can Pan and Zoom (High res) and see virtually any landmark in Dubai. In conjunction with the Property map you can relate different property areas to key visible landmarks. Although some areas are in the distance you can zoom in.
Click on the above link to view the Map. You can use the mouse or arrow key to pan and zoom
Openshore Dubai Property Map
Please email us to request the new Openshore Dubai Property Map. This is a pdf files that gets updated regularly and is not on this site.
If you are looking to buy a property in Dubai, you should spend some time looking at the Property Map and reading the information below.
The Map is on two A3 sheets and is divided into 4 pages. “Old Dubai” is at the top of pages 1 & 2. The rest is sometimes referred to as “New Dubai” and is shown in pages 3 & 4 and bottom of pages 1 & 2. Overseas buyers can only purchase freehold properties in the “New Dubai” areas. See below the following sections:-
1. Dubai Property Map Summary
2. All Property Areas by Type of Property
3. Property Price Trends & Actual Prices
None of the 900 tower developments in Ajman that were launched in 2007 & 2008 by Ajman Government in partnership with hundreds of different developers have been completed. After the financial crisis at the end of 2008 and early 2009, developers could not get bank funding and customers stopped making payments and these buildings have not been built. Most of the funds paid to developers have been spent on plot payments to Ajman Government and other admin expenses. About 10 buildings are nearing completion in Emirates City and may be completed in the future.
Dubai Land Department have recently announced, (as of January 1st, 2011) that it is has banned the registration of Dubai property in the name of virtually all “offshore companies” or companies not registered onshore in Dubai. The one exception to this “offshore company ban” is the Jebel Ali Offshore Company. This new rule does not effect individuals, only foreign or “offshore” companies looking to purchase property.
The following Q&A is to inform non GCC purchasers and investors, of the implications of the Land Department’s new rules, and how the recent changes will affect foreign companies purchasing and registering property in Dubai.
Openshore does have a convenient method to enable the purchase by a non-Dubai company but only for properties already owned by Openshore. Please discuss with staff if you wish to have details of this process. However, in general, non Dubai companies apart from Jebel Ali Offshore Company cannot buy property in Dubai – See the Q&A below: