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Dubai's status as one of the locations of choice for real estate purchases by a growing number of people from an ever widening collection of nationalities is well documented and firmly established.
By now we all know about the high levels of capital growth and the strong rental returns that can be achieved here, but what motivates people to move their capital into these shores rather than any other flourishing market?
As a starting point, Dubai's lifestyle, safe environment and tax-free status, make it a popular option to investors from countries all over the world. Additionally, Dubai's cosmopolitan nature makes it an attractive choice for people throughout the world looking to come and live, work and play together. With such a heady mix of cultures, there is no need to worry about fitting in or struggling to meet new and like minded people.
Recent figures showed that British nationals, Indians, Iranians and Pakistani nationals are among the biggest purchasers of Dubai property.
The British and British Asians in particular, have been developing an appetite for Dubai property for some time now, with over 100,000 said to own real estate here. Dubai's growing popularity as a tourism destination and convenient location, only six flying hours from the UK and a short hop from many other places, are strong influencing factors in the decision making process. With one in ten Britons now choosing to live overseas, it is envisaged that Dubai will further grow in popularity in the coming years.
Ever since the Reserve Bank of India doubled the amount an Indian can invest abroad each year we have seen a marked increase in the numbers buying property in Dubai. Many are looking for a second property with a foreign address and while some choose to use it for holidays or second home; others take the opportunity to purchase purely for investment.
As well as the short flying time from Mumbai, other incentives for choosing Dubai include the relative ease of securing bank loans here, along with the opportunity to gain a UAE residence visa through home ownership.
Freehold property law
When the freehold property law was announced in 2002, Iranians were among the first to take the plunge and buy property here. With a large number of Iranian businesses in the emirate, perhaps prompted by the economic and political stability the UAE affords them, it is not very surprising that over 400,000 Iranians are estimated to have purchased here.
The reality is that as well as the three largest buying groups, people from all nationalities are buying here and aside from the reasons already mentioned, perhaps the biggest selling point of them all is, Dubai the brand. Over the last ten years, the Dubai Government has spent millions of dollars marketing Dubai and introducing the rest of the world to a side of the Middle East that has previously been overlooked.
No matter where you are in the world today, brand Dubai is never too far away. Whether it is in the form of; sponsorship of one of the world's leading sporting events, a billboard advertising the aspirational lifestyle that Dubai has become synonymous with, or simply listening to a debate on the merits of Dubai's latest iconic project, the city is definitely in vogue and very much top of mind right now.
It is the success of this marketing campaign that has created such a buzz about Dubai all over the world and in the process, has made it not only the place to be, but also, the place to buy.
- The writer is managing director of Better Homes.
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