Those looking to diversify their real estate portfolios into holiday homes should take a hard look at the United Arab Emirates (UAE). Prices have fallen due to oversupply brought about by competitive building from their previous highs, and exchange rates are favourable, with the fall in costs of the UAE’s chief export, oil. Moreover, since the real estate market was liberalised in 2002, foreigners have been able to buy property in the UAE without limitation.
People who have yet to see the UAE’s capital city of Dubai often find it hard to imagine the scale of the building there. It’s frequently jaw-dropping, with a purported third of the world’s building cranes found in the nation. Some of the most remarkable building on earth happens in Dubai, like the archipelago Palm Jumeirah, created by an amazing feat of land reclamation.
The Burj Khalifa, the world’s tallest structure right now, is located in the heart of Dubai. A mixed development with offices, retail, restaurants and residences, it was featured in crucial scenes in the 2011 film Mission Impossible: Ghost Protocol.
Furthermore, the UAE is a haven for shoppers, with no sales taxes on transactions. Both locals and tourists alike get to enjoy tax-free shopping, with many travelers taking advantage of the exchange rates to purchase high-end labels too.
Thrill-seekers also have plenty to appreciate in the UAE. A popular activity many tourists enjoy is to ride in a quad bike, or the sand dunes in a buggy. For the greatest thrill, there’s nothing quite like skydiving jumping out of an airplane and plummeting towards the Palm Jumeirah, before you open and buoys to safety.
For foreigners who want to appreciate the lifestyle that the UAE has to offer, there are a number of holiday homes in the marketplace at this time. As is characteristic of the UAE, many of the homes advertised to foreigners are luxurious villas and high-rise penthouses. However, for people that have deep enough pockets, these items aren’t only a status symbol, but also a great source of capital appreciation.
As expatriates in the gas and oil industry have been hit by the global drop in the commodity’s price rents nonetheless, are on the decline.
Yet, many investors who are looking to monetize their holiday homes regularly turn to short term leases, giving them the flexibility of bringing in rental income when they’re out of town, or using the property as a holiday home. While services like Airbnb were previously illegal, it seems that the UAE has since allowed homeowners to rent out their homes to tourists, if they were to apply for a permit issued by the Department of Tourism and Commerce Marketing.
Before you buy a holiday home, it’s best to check out yourself to the location. Plan a flight to Abu Dhabi or Dubai