Buying property in Dubai

Typically a deposit or first payment of around 15% of the total purchase price is to be paid followed by varied quarterly instalments until the development is finished. However, if you were to secure a property in June 2005 for a price of £100,000 (*669,000 AED) that is scheduled for completion in June 2006, then your first payment will be £50,000 and not 15% as you have to play 'catch-up'.
 
* 1.00 GBP = 6.69 AED as of June 25, 2005
 

The Dubai rental market is also different. In the UK it would cost an average of 12% of the rent if you rent your property via an agent. In Dubai, a management company/ letting agent will charge the tenant around 5% to locate a suitable property and the landlord will pay around 7% of the yearly rent to the agent for full management. In some cases, they will even complete a snagging list when your property is finished. This is where it gets interesting - a tenant has to pay 100% of the total rent up front, thus eliminating the need to chase bad tenants or slow paying letting agents. This rental income can then be transferred to an account of your choice in UK or in Dubai.
 
According to Glen Matthews (Director of Dubai based JG property management); the rental yields are also forecast to be far higher than the UK. An annual return of 6% would be typical within the UK, whereas yields doubling that figure could be expected in Dubai.
 
If any of our readers have a serious interest in buying in Dubai then please contact Artful Lodger.