Investment Properties

In an attempt to boost investment properties the government of Dubai has waived custom levies on steel and cement. The market for investment properties in Dubai has been threatened by rising costs of building material. A Khaleej Times report states that the government’s intervention is an effort to ensure that boom in investment properties continues. Property development has been key to the governments vision to make Dubai a commercial hub for the region and this move will give a much need fillip to investment properties.

Dubai has long been a hot spot for investment properties. Colliers reported that in the 4 years between 2003 and 2007 prices have risen by 226%. While some warn that prices may have peaked out, the fundamentals for investment properties remain strong.

Investment properties have been propelled by demand that has always outstripped supply in Dubai. EFG Herms, one of the leading investment banks in the regions reports that the latter half of 2008 will see 64,000 housing units enter the market creating a supply glut in residential investment properties. However, with the economy going strong, experts feel that the investment properties market will tide through the situation.

The commercial investment properties market has been driven by a tax lenient regime which has prompted many multinational to base their operations in Dubai. With more foreign direct investment, there is a huge drive to attract more highly skilled people to the emirate. Residential investment properties will benefit from this.

Buy-to-let investment properties market has also been fuelled by a floating population of leisure seekers. Tourism comprises up to 11% of the country’s GDP and there is considerable thrust on the industry. The new Dubai Airport, which is pegged to be the world biggest in 2025 and a host of other new attractions are geared to meet greater tourist traffic giving impetus to investment properties.

With future projections so positive for Dubai, analysts still give investment properties there a thumb up.