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Buoyant demand for real estate and shortage of properties
The present economic boom and the development of tourism have led to a buoyant demand for real estate and a shortage of properties to buy. We are now expanding at full speed, and only 20% of the total property needed has been built. It is virtually impossible to find a property already built: everything is bought virtually as soon as it is planned.
Currently the annual yield for an apartment is between 12 and 13%, and 17% for an office (based on the initial purchase price). This pressure is set to ease slightly, but it is perfectly realistic to predict stable yields of around 8% by 2010. Incomes are not taxed in Dubai – a point not to be overlooked.
New laws on property rights and the recent establishment of a land registry have helped underpin the steady increase in property values. Purchase prices are currently between CHF 3,500 and 4,500 per m2. Sales to foreigners have only been permitted since 2002. The procedure is swift and straightforward. Indeed, everything can be done simply and quickly: drawing up the contract, scheduling payments as construction progresses, reselling your apartment – even selling ‘off-plan’. You can buy in situ or from Switzerland.