There are countless reasons why people still buy in Dubai.
It is the perfect tax haven for rich foreigners.
Long-term resident and British developer Andrew Lemon says: “Sun, fun, no tax still applies – and it’s a big draw.” He has noticed some people prefer it to Monaco to flee tax laws in France.
Dubai is also a safe haven for regional investors in a stormy Middle East. See full article on BBC website at
The Dubai Property Show was visited by more than 4,000 visitors during its first two days, with the DLD’s stand servicing a high demand from investors for real estate projects in Dubai
A slew of measures have been introduced by Real Estate Regulatory Agency (RERA), the regulatory arm of Dubai Land Department (DLD), to ensure that developers complete their projects.
A developer now must have a 100 per cent paid-for plot before he can construct on it. There is also a minimum amount of money that needs to be put into escrow accounts, or a minimum percentage of construction that must be in place before escrow and launching of a project can be done.
All properties must be registered in the buyer’s name in the Dubai Lands Department. All money paid towards an off-plan project must be in an escrow account in the name of the project. Developers are now bound by RERA to delay handover by a maximum of 12 months, otherwise buyers are entitled to a full refund. Also, most payment plans are pegged to construction progress, meaning installments are due only when construction milestones are reached.
On 27 November 2013, when Dubai won the right to host the expo 2020, fireworks erupted at the world’s tallest building, Burj Khalifa. A national holiday was declared the following day for all educational institutions across the country. The Dubai Ruler promised Dubai would “astonish the world,” in 2020. The staging of the world fair and the preparations leading up to it are expected to result in 277,000 new jobs in the UAE, an injection of nearly $40 billion into the economy, and an increase in visitors of at least 25 million and up to 100 million. Director General of Dubai Municipality, Hussain Nasser Lootah, said that they have the largest laboratory in the region, and can easily research new materials and technologies required for construction. The world’s tallest commercial tower to be built in Dubai, in Jumeirah Lake Towers, was given the name “Burj 2020″ in honour of the World Expo 2020.
Dubai was the toast of Paris and promised to “astonish” the world in 2020 through its vision of innovation and creativity after it bagged the right to host the world’s biggest exposition following a gruelling campaign and three rounds of voting. The victory also brought to fruition a two-year-old dream for the city which emerged the clear winner in the French capital in the final round after leading all the way.
Activity on completed projects is stable to strong whilst those tough enough developers push on with construction.
September 15, 2008: Wall Street bank Lehman Brothers files for Chapter 11 bankruptcy protection and another US bank, Merrill Lynch, is taken over by the Bank of America.
The financial crisis of 2007–2008, also known as the Global Financial Crisis and 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s. It threatened the total collapse of large financial institutions, which was prevented by the bailout of banks by national governments, but stock markets still dropped worldwide. In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of U.S. dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis. The active phase of the crisis, which manifested as a liquidity crisis, can be dated from August 9, 2007, when BNP Paribas terminated withdrawals from three hedge funds citing “a complete evaporation of liquidity”.
The bursting of the U.S. (United States) housing bubble, which peaked in 2006, caused the values of securities tied to U.S.real estate pricing to plummet, damaging financial institutions globally. Source Wikipedia
The creation of Dubai’s Real Estate Regulatory Authority (“RERA”) in 2007, we have seen it playing an increasingly public and crucial role in developing and supervising Dubai’s real estate regulatory framework and development.
Law No. (7) Of 2006 concerning Real Property Registration in the Emirate of Dubai was signed by Sheikh Mohammed on 13th March 2006. According to Article 29 of the Law, it will be published in the Official Gazette and will come into force as of the date of its publication. Gives the whole market confidence and this fuels the property boom with skeptics concerns abated new investors gain confidence to invest in Dubai real estate projects.
Premiums begin to take pace as good developments sell out quickly. Strong resales market especially for Palm Jumeriah. The market really gains traction. The question now on everybody’s mind is whether this new Law provides legal confirmation of a foreign investor’s right to own property in these projects and secure registration of their title at the Dubai Land Department. Will the confidence and patience of these investors be rewarded and will it instill confidence in the many more circumspect investors waiting in the wings for a robust Property Law before they decide to invest?
Buying turns to frenzy as early adoptors and investors take advantage of low pricing. Developments sell out quickly and Palm Jumeirah property becomes a hot commodity with increase in premium on a daily basis.
The roots of the property boom in Dubai date back to 2002 with the announcement by His Highness Sheikh Mohammed bin Rashid Al Maktoum that freehold ownership of certain properties in Dubai was available to investors of all nationalities. Several projects are launched and sold to foreigners. These projects include Dubai Marina, Emirates Hills, Jumeirah Islands, the 3 Palm Islands, Dubai Waterfront, Jumeirah Beach Residence, The Meadows, The Springs, Arabian Ranches, the list is endless. In some instances, properties have already been completed and handed over to buyers. Buying begins with strong interest with buyers of all nationalities.