In Dubai, real estate matters

Following the financial crisis, Dubai’s real estate market has undergone a huge transformation. Gone are the “flippers”, investors who would buy units off-plan only to resell a day later, making a substantial profit in the process. Instead, given the scarcity of credit and on-going concerns about the ability of certain developers to finish construction on time (or at all), there is now a keen focus on projects that are complete.

Further, with experts generally agreeing that there is an over-supply of completed units, prices have remained depressed, with few predictions of any increase in prices in 2011.

Changing rules

While there are specific areas where foreigners, both individuals and companies, are allowed to buy real estate, in the past not many gave much thought to the investment vehicle they used. Recent changes to the regulatory framework, though, have brought into sharp focus the need to consider this matter at the earliest stage.

Andrew Yule (ayule@afridi-angell.com) is an associate at Afridi & Angell. The above information is not legal advice and is neither intended to create nor creates a lawyer-client relationship. Neither the writer nor Afridi & Angell are responsible for anyone relying on the above information. You are recommended to take independent legal advice.