In the 6 months from January to June 2014, Openshore Property has seen a 31% increase in sales of low cost investment apartments under AED 600,000 (£100,000) to Dubai Property buyers from all over the world, compared with the same period last year. The increase has been driven by buyers from the Middle East.
The latest Dubai Property survey by Openshore Property shows that rising prices in Dubai with lower rental yields in the prime sea-side areas are forcing investors to look inland where property prices are lower and rental yields higher. The same trend was observed when property prices rose in a similar manner in 2006 to 2008.
What’s the Best Way to Invest & Grow £65K?
Here are the top 3 options:
1. Do Nothing with it – Keep the money in a Savings Account
2. Traditional Investments – Put into Shares, Pension, ISA, various Funds, or even Gold.
3. Property – Buy an investment Property in Dubai.
Here we look at these 3 options in detail
Two of the most popular countries considered by International Investors for property investment are the UK and Dubai. Our group companies (Find UK Property and Openshore Dubai Property) sell and manage property in both of these locations, and so we thought we would give you a summary comparing these two options – UK Property or Dubai Property.
Today, Wednesday 27th November, 2013 Dubai, UAE was awarded the bid to host the International Expo 2020 Exhibition.
Dubai’s win to host the Expo 2020 is likely to boost Dubai Property prices in the next few years. The “Expo” exhibition is a 6 month long world exhibition that is hosted every 4 years in one world city. In the final round today Dubai competed with Russia, Brazil and Turkey and won the bid. Expo 2020 Dubai is likely to be the best ever visited Expo due to the location within Dubai which is on target to become the world number one airport hub.
This win will provide a further boost to Dubai economy, tourism and the property market. Property prices are already rising and are expected to continue to grow well for the next few years at least.
Our view is that Dubai property prices that have been steadily growing for the past 2 years will jump up quite sharply over the following weeks due to this news.
3 Reasons Why Dubai is BOOMING
The property market in Dubai has now entered an aggressive growth phase with prices rising every month. The underlying causes for this can be summarized as being due to 3 main reasons:-
-Dubai Population Growth
-Big Increase in Tourism
-Return in Confidence
These 3 reasons are explored further:-
Out of the current 7.1 million population of the UAE, Dubai account for about 30% (2.1 million) and is the largest Emirate by population. Although Abu Dhabi is physically much larger, it accounts for only about 25% of the UAE population. The remaining 5 Emirates account for the rest of the population.
Over 80% of the population of the UAE is non-Emirati – ie. From overseas and this figure is set to become almost 85% as most of the growth is due to immigration from other countries. Thus less than 15% of the people in the UAE will be the local Arabs (Emiratis).
The biggest future forecast growth is within Dubai where the population will increase by 50% within 4 years and will DOUBLE within 7 years.
Last year, about 8 months ago, we told you that the 2nd Dubai Property Boom had started and we were the first company to tell you this.
At the time we expected property prices to rise fairly quickly over the next few years back to peak 2008 levels and then go beyond these before slowing down. This indeed is happening! Prices are now rising every month.
But Will it be another Boom and then Bust? Continue reading
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.