This development means that Dubai is set to become an attractive second-home destination. Until recently, luxury off-plan projects such as the Dubai Marina, really only attracted buyers looking for an investment. Now foreigners – who comprise 80 per cent of the state’s estimated 1.2 million people – living in Dubai are starting to fork out on second homes to live in.
Foreign property owners taking time out from Dubai also have the opportunity to benefit financially from their home; the new legislation gives the green light for them to “derive profit from their property or rent it out for a period not exceeding 99 years”. As residents in Dubai increase by a staggering 200,000 annually, there should be no shortage of takers in the rental market. Furthermore, a short supply of available rental property – due to a delay in completing some major developments – has led to a hike in rental rates. Landlords can expect yields of 10 to 15 per cent. All in all, buying a freehold property there could be a lucrative move.
Foreign property owners taking time out from Dubai also have the opportunity to benefit financially from their home; the new legislation gives the green light for them to “derive profit from their property or rent it out for a period not exceeding 99 years”. As residents in Dubai increase by a staggering 200,000 annually, there should be no shortage of takers in the rental market. Furthermore, a short supply of available rental property – due to a delay in completing some major developments – has led to a hike in rental rates. Landlords can expect yields of 10 to 15 per cent. All in all, buying a freehold property there could be a lucrative move.