More than US $50 Billion to be invested in Dubai by 2010.
Tax-Free Lifestyle.
Duty Free Shopping.
The supply of property in Dubai is not keeping up with demand.
Booming real estate market in this cosmopolitan city ensures Dubai is one of the most important real estate hubs in the world.
Record low interest rates and dismal stock markets are goods news for realtors; the Dubai Government is behind the real estate boom, and has secondary motives such as attracting wealthy immigrants to the city. As a results villas and apartments are being sold very cheaply.
One way to judge if real estate is cheap is to look at the yield or rental return. In Dubai a basic yield of 10% on residential property compares with a 6.5% local mortgage rate. In London 3% to 4% would be considered a good yield today so 10% implies a considerable under valuation of property.
