A new statistic released by the Dubai government states that almost 30 per cent of Dubai’s property is owned by women.

The number of female buyers is growing, and in Q1 2018, they invested AED4.4 billion in the Dubai property market, and AED 27 billion throughout 2017, as per Dubai Land Department (DLD) data.

When buying a property here, it is important for all buyers and especially non-muslins who may not want their wealth to be allocated according to Sharia law, to register a will that will distribute their estate according to their preferences. Read more here

This week’s property discussions have included:-

The Holy Month of Ramadan is expected to begin on May 15 and end on the 15th June; some of the developers have already declared their special Ramadan offers, and we are expecting a very busy month ahead of us.

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The Dubai government is focusing on encouraging developers to build more affordable properties and there is much talk in the press about the UAE Central Bank changing the rules on Mortgages to enable more of the growing middle class of Dubai to purchase a property and to break away from the rental trap. Read it here

An ex-pat resident can borrow a maximum of 75% Loan to Value (LTV), and after all the purchase fees are added, then the buyer roughly needs a minimum of 31% of the purchase price in cash to buy a property with a mortgage. That’s a large amount of cash to save up for a young family even with a reasonably good income so any improvements to LTVs will be a positive for first-time buyers and to the market in general

Please read the following for an overview of the current availability for mortgages

This week’s property conversations have included: -

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Data published recently for The Arabian Travel Market 2018, which takes place tomorrow at the Dubai World Trade Centre, shows that almost 25 million Europeans will travel to the GCC between now and 2020, that’s four million more travellers than 2015–2017.

The UAE and Saudi Arabia continue to be the preferred GCC destinations for European visitors; together they are on track to welcome 81 percent of the projected business and leisure travellers

While these tourists have previously travelled to the GCC for its luxury resorts, the growing numbers of millennial travellers, middle-class tourists and corporate travellers on a budget, are slowly changing traditional market trends, as is the growth in affordable, mid-market hotels combined with an increase in low-cost flights

We are also witnessing a similar shift in property purchasing trends over the last couple of years and now according to the Affordable Housing Institute, 82 percent of transactions in 2017 were below AED2m or GB£ 400k, and almost half – 47 percent – were below AED1 million (GB£ 200k). Most of the transactions – 85 percent – were for apartments, a clear choice for budget-conscious residents and market-savvy investors.

This week’s property conversations have included: -

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It is possible to obtain a Mortgage as a non- GCC National, either resident or non-resident of the UAE, up to 50% Loan to Value (LTV) on a property that is under construction, however, this is limited to projects that have completed 50% of their construction and only then with a handful of developers.

The majority of off-plan developments have payment plans that reflect this, andyou will find 30/70, 40/60 and 50/50 plans on offer from developers, i.e. 50% between booking and completion in construction linked instalments of between 5% and 20% with the final 50% due on Completion.

Once a building has a Completion Certificate issued then the overseas buyer canbook a Mortgage to make the final instalment to the developer.

A 50% LTV Mortgage is a straightforward application and approval process while 51% to 75% LTV is much more stringent and complicated.

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If you have been reading the Dubai property news, then you will know that rents and prices are under pressure, meaning that they are coming down off recent highs.

These reports do not tell the entire story, and it’s important to understand the real facts behind the headlines

The buildings that are poorly maintained, badly designed, have low-qualityrecreational facilities combined with a lack of decent parking are experiencing a definite drop in rents however yields and occupancy levels remain respectable which is not mentioned in many of the reports.

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A property that sells for under AED 500k (£100K) and you can expect very small units or inferior quality therefore tough to find a tenant or future buyer but receives a high rental yield.

Property over AED 1.5m (£300k) and you have more luxury in a central location which receives a good demand from buyers and tenants but a lower rental yield.

The sweet spot and focus for investors looking for above-average rental yield combined with quality in Dubai needs to be properties priced between AED 500k and AED 1.5m (GB£ 100k to £300k).

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Airbnb was officially sanctioned by the Dubai Tourism authority in 2016, and Ras Al Khaimah followed suit in January 2018, signing an agreement with Airbnb to promote "new rules and responsible home sharing," seen as the last hurdle to a full-scale launch in the emirate.

Owners planning to rent their properties short-term in Dubai or Ras Al Khaimahneed to register with the relevant tourism authorities and gain a permit but there are now licensed specialist companies who will fully manage the property and administer the paperwork required so that overseas and local owners can gain an income from their holiday homes without getting involved in the day to day running. Read more here

Another busy week for Dubai property: -

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Dubai’s world-class infrastructure, geographical location, the frequency of air connectivity and the Emirates’ liberal socio-economic policies and political stability make Dubai a natural choice for Indians to invest in their second, third or fourth home.

Indian nationals, who form the largest foreign investor group in Dubai’s real estate, have bought properties worth AED 83.65 billion in the last five years – from 2013 to 2017 – in Dubai’s property sector, according to statistics compiled by Dubai Land Department. Read more here

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A few developers in Dubai spend millions of dollars promoting their projects to investors here in the UAE and internationally, and a few years ago, the sales message was all about low price per square foot but now it's about low entry prices.

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There have been some articles in the property sections of local newspapers recently that have reported on and listed the areas in Dubai that give the best rental yields/returns.

Interesting reading perhaps, but misleading, as these league tables are calculatedon the average values and rents across all buildings in each specific community or suburb.

Real Estate agents, pundits and owners all over the world speak about location, location, location however here in Dubai one cannot base the rent/yield/value on just this mantra.

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New legislation for non-government backed developers in Dubai has been proposed by the Real Estate regulatory bodies and its designed to protect investors further.

It's possible that developers will only be able to launch sales on off-plan projects once construction reaches the 50 percent mark . This is intended to reduce the risk of market oversupply and could result in consolidation among smaller private developers.

Presently the law states that the developer must complete 20 percent of the project or they must provide proof of 20 percent of construction funds in addition to a 10 percent performance bond by the contractor.

This proposal is likely to slow down the pace of off-plan launches in the short term. It will also reduce the current risk of a few developers flooding the market with sometimes lower quality properties at discounted prices and attractive payment plans.

Property discussions this week have been as follows: -

Bullet-Point Property: Dubai No. 66

This week we learned that the commercial insurance unit of Warren Buffett’s Berkshire Hathaway has expanded into Dubai, after getting a license from the local regulator. Berkshire Hathaway Specialty Insurance Company (BHSI) established an office in the Dubai International Financial Centre (DIFC)

The press has also reported that there have been 1,600 new business registrations in January 2018 and that the number of active businesses in Dubai increased to 148,842 in 2017, including 19,877 new trade licenses issued in 2017, according to the Dubai Economy, the trade licensing body of Dubai Government.

These are some of the properties that we have been talking about this week:-

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