Why buy in Dubai?


HOME COMFORTS: Shah Rukh Khan and his wife Gauri (below right) own a villa on Palm Jumeirah
HOME COMFORTS: Shah Rukh Khan and his wife Gauri (below right) own a villa on Palm Jumeirah

by Andy Marino REASONS TO INVEST INCLUDE LOWER PRICES AND CELEBRITY NEIGHBOURS WANT to live next door to your favour­ite Bollywood stars? Then it’s time to buy in Dubai. Prices have been sliding a little since 2014, as inflows of capital from countries such as Saudi and Russia have dwindled, but that means better affordability. For most of the year so far, buyers have been opting for properties they can occupy straight away instead of slapping down deposits after reading developers’ bro­chures. That’s probably because there’s quite a bit of quality brickwork on offer after a slow two or three years. In Dubai, renting makes sense – not just as a test-the-waters option, but also as an investor strategy. It’s been claimed that rental yields in the city can be eight-10 per cent, “especially in the apartment sector located around the Dubai Marina”. But caution is advised, especially when foreigners have to put down a minimum 25 per cent of the property value by law. Whether buying to live or buying to let, bear in mind the high maintenance and management fees in Dubai develop­ments, as well as the DEWA (Dubai elec­tricity and water) rates. But also know that Airbnb pads can also be a lucrative draw for visitors. On the whole, though, with property prices stable and expected to rise slowly, it’s worth considering an investment as the climb up from the dip commences. Abhishek and Aishwarya Rai Bach­chan reportedly own a place in Sanctu­ary Falls, developed by Shaikh Holdings, within the Jumeirah Golf Estates – plus a luxury bungalow in Emirates Hills. The properties in Sanctuary Falls have foot­prints between 5,000 and 10,000+ sq ft and five or more bedrooms. Better start saving now – you’ll be paying between £3 million and £7 million to join that club.…

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