Dubai property has been a favourite with investors for some time and continues to offer an exclusive location for overseas investment with many benefits. Property in Dubai is always a consideration for any property investment.

The future of Dubai is focused upon creating a business and tourism environment, centred on incoming foreign investments. As an attractive investment, there is a tremendous amount of properties to choose from and more than enough reasons why you should invest in Dubai property.

Reasons why property in Dubai is a good investment

• High capital appreciation.
• High rental yields in completed properties.
• Capital Gains Tax = 0%, Rental Income Tax = 0%.
• Business hub of the Middle East ; an increasingly important player in the world stage.
• Future Demand: The Dubai population is set to increase from 1m to 3m, with tourism tripling from 6m to 15m, by 2010.
• Future Supply: Demand-supply ratio is managed to maintain strong growth and returns.
• Very affordable by international standards.
• Excellent quality of property.
• One of the most significant leisure destinations in the world.
• Cosmopolitan global business centre with luxurious facilities and incredible beaches.

Making an Offer

In Dubai, the first step in buying real estate is an oral offer to a seller. In Dubai, a foreign national needs no special permission to make the purchase of real estate in that country. In addition, unlike some countries (including some in the Middle East region of the world), a foreign national can own real estate directly and does not have to bounce through an extra set of hoops towards the goal of buying and holding real property.

Following the acceptance of the oral offer, an initial real estate sales contract is drafted and executed between the parties. A deposit -- in an amount negotiated by the parties -- is placed at this time by the buyer to the seller. Generally speaking, the deposit is not refundable unless the seller of the property is unable to convey ultimately the real estate to the buyer. In other words, barring some snafu by the seller, a buyer will lose his or her deposit if he or she backs out of the contract.

In Dubai, a mortgage lender from nearly any country in the world can provide financing for the purchase of real estate in that country. What one needs to bear in mind when buying property in Dubai is that many times a lender will require collateral beyond the property located in Dubai, beyond the real estate being purchased. In most real estate transactions the world over, the only collateral the lender requires for a mortgage loan is the real estate itself that is buying purchased. However, when a foreign national is making the purchase of real estate in Dubai, a mortgage lender in most instances will require collateral beyond the actual real estate situated in Dubai that is being purchased.

The primary reasons for the requirement for additional collateral when obtaining a loan to purchase real estate in Dubai include the general instability in the region. There is a concern on the part of some mortgage lenders that something might cause a disruption in Dubai that might effect the real estate collateral in that country. Thus, the typical lender will want additional collateral for any loan. Additionally, while the real estate related laws in Dubai are very liberal, there is always some concern that a new regime might take control of the country causing a disfavor able alteration in the real estate laws in that country. Again, for that reason, lenders desire additional protective collateral in regard to the purchase of real estate in Dubai.

With this in mind, when purchasing real estate in Dubai, it is imperative that a potential purchaser makes certain that he or she has access to other property that can be used as additional collateral for the purchase or real estate in that nation.

Once the various requirements of the initial contract are satisfied -- the buyer obtaining financing, the seller making certain that the property is free of any encumbrances that might prevent a conveyance to the buyer -- a final contract is executed, the remaining money due to the seller is paid and a deed for the property is given to the buyer who will become the new owner of the real estate at that juncture.