After going through all the main threads in this wonderful web site I came to this conclusion regarding investing in property.
Many countries have advantages and disadvantages some worth investing in and some
With higher risk …and my conclusion is DUBAI is a good place for investment why
Advantages:
1- no tax
2- less fraud
3- high construction quality (not best in the world but better than many other locations)
4- good tenants for income property(not many cases of returned checks or non payment) and many tenants stay long term
5- High rent (9-12%)
6- cheap property compared to many around the world specially if you compare ROI
7- local government spending a lot on infrastructure (improving highways , bridges, tunnels , shopping centers, hospitals, etc)
8- many large business starting to be based here
9- most of the developers finish the projects(not many bankrupts)
10- GDP pretty good
11- High employment rates all tenants can afford to pay rents(not like many east European countries)locals cant rent your property.
12- Prices are still cheap $200 per sq foot on average high end can reach $500 . But not in very high end projects like the palm. compared to east Asia prices can go as high as $2000 psf so there is still enough cushion for prices to move up
13- Low crime rate one of the lowest in the world I think(not sure about the rank)
14- Many ppl from surrounding troubled countries are coming to live and stay in Dubai making demand on rental properties high
15- I can list a lot more points but I m tired of typing

Disadvantages:
1-geoploitcal tensions in the region (important factor but look at the advantages above)
2-research reports are saying supply will catch with the demand soon like in 2010
Based on assumptions and one of the assumptions that I don’t agree with is supply demand curves are based on 2.5 ppl per flat and I think it should be +4 ppl in a flat
Many ppl can t afford to stay without sharing especially new comers who start with low salary …..Anyway which means demand will be equal to the supply much sooner than 2010 lets say by end of 2008 which means you have to adjust your rental expectations by as much as 20% more flats to rent less ppl to rent them only cheaper ones will go
Which means?
3- Prices might correct a little bit anytime soon lets say by 20%max
4- severe weather conditions high salt content in groundwater sandy soil which makes most buildings require piles under foundations and they have a life span
And I as a civil engineer I give most buildings a life span of 15 years as a safe estimate when I calculate my ROI
Said all this if you repeat this exercise with other locations around the world you will not get a better deal than DUBAI the advantages are many.
And I m talking from experience as I have been to many other locations around the world in search of a good property investment (deal
Would like to share your comments on investment in Dubai

Hi

was going through the threads and just thought that i would put in a note. Have a look at my thread http://www.totallyproperty.com/dubai...ment-info.html
it will give some info on business bay. personally, i think that commercial office space is going to be booming. the smart investors are looking to business bay. it will be a mid to long term investment, but those who have the vision and have actually seen the plot know that it is going to be big.

look for concepts in business bay as they will create an identity for the the end user. and remember that when the end user likes a project to set up an office in, it is always good news for the investor that bought into the roject at an early stage.

look at the Chrysler building in New York. it does not have views apart from other buildings, no parks or water directly next to it. but it is an icon which is why business's love it. look at the Gherkin Building in London. it is an icon, with a slightly different shape which is why it does so well. again the docklands area in london. no-one thought that it would be this good and now it represents the financial district in uk. Business Bay will surpass these areas and more.

have a look at the thread and gain your own opinion.

ratib