Depending on the conditions within any given housing market, determining whether to invest in real estate is a variable decision. When a real estate market is hit by a financial crisis, housing inventory can go up and prices can come down. Additionally, when it’s not just the housing market that’s affected, but the whole economy, sales of new and used homes also decline making the housing market more of a long-term buying opportunity than a short-term flip. Real estate opportunities with potential still exist during a financial crisis, but an investor may do well to think carefully about his or her decision. Real Estate markets invest in many places, one such example is the United Arab Emirates (U.A.E) which has a real estate market that has also been influenced by financial crisis.
To illustrate how even during a financial crisis, investors still invest, Donald Trump, a well known real estate investor allowed his “Trump” trademark to be used in the branking of hotels within the UAE. In other words, Donald Trump didn’t just choose to allow his trademark to be used in the United Arab Emirates (U.A.E) because he likes hotels; he did it because he saw a real estate investment and marketing opportunity. This article will illustrate some of the reasons why the U.A.E. is a real opportunity for real estate investors.
For starters, U.A.E. properties are currently a good investment due to strong political, business and income sources within the country, and especially Abu Dhabi and Duabai as a whole. The U.A.E. has a very favorable business regulatory environment, and significant expansion and development within the emirates themselves. “Take the money and run” property developers have been weeded out and the existingdevelopments are Sheikh i.e. government sponsored. What’s more, the process of purchasing property overseas from the United States hasn’t been easier.
The reason for this is that companies located within the United States, such as property marketing firms with offices in several large U.S. cities, perform the leg work, feasibility studies, and networking with property developments for U.S. clients, so those clients don’t have to spend money on related travel expenses and multiple property consultations with different brokers. These types of businesses also provide property and business consulting services at considerable rates and/or as part of the investment price.
Since 2004, the Emirate of Ajman, a neighboring emirate within a few miles of Dubai, has legalized freehold housing. This allows foreign investors to own title to property and pursue investment interests such as rental agreements and/or resale at later points in time. There are several advantages to investing in U.A.E. real estate, including the emirate of Ajman. Some of these reasons as of the writing of this article are listed below:
In an article written by nubricks.com, an overseas real estate property blog, C. Mahida writes “With all property in Ajman benefiting from a freehold status, as well as the same enticing personal taxation environment as Dubai, Ajman is a secure and safe emirate in which to invest. Located just 20km north of Dubai, Ajman has seen a high number of reputable property developers undertaking construction projects in the emirate.
With its ideal location and easy access from the continuation of the Emirates Road and Dubai Metro system which is currently underway, Ajman will be a first-class location for long-term residents and visiting tourists alike.” The news on this real estate market is out because of what it is, an enterprising, business friendly, tourist attraction within a growing international commercial hub.
Real estate investment in the U.A.E. is quite simply a good prospect during a financial crisis in other parts of the World. The U.A.E.’s population is growing at a rate of 3.83% in population, and housing supply is expected to be lower than demand (www.ameinfo.com). Moreover an expanding in infrastructure and an attractive holiday location with its palm lined golf courses, amusement parks, and warm water coast line.
When considering real estate investments or places to visit in the cold winter, the warm U.A.E. has something to offer for both U.S. and international investors seeking new investment horizons, employee housing, and international housing. It’s time to consider real estate once again, and not just as an investment but an exciting place to take the family and kids for vacation.
1. http://bit.ly/dsUzcL (Emerald View Group)
2. http://bit.ly/b7S8Ub (The Economist)
3. http://bit.ly/caFbQ6 (Property Showrooms)
4. http://bit.ly/ajqcb8 (Ameinfo.com)