Dubai Property Market one of the most Regulated in the World
DAMAC Properties Seeing more Indian Buyers than any other Nationality due to Increased Confidence
Recent legislative changes have made Dubai's property market one of the most regulated in the world, driving increased confidence from Indian buyers and boosting overseas investment in the UAE, according to the Middle East's leading private luxury real estate developer.
DAMAC Properties says it has seen a marked increase in transactions from India since recent regulation was implemented to make the market more transparent.
"We now have more buyers from India than any other nationality," said Niall McLoughlin, Senior Vice President, DAMAC Properties. "This is in a big way down to the increased confidence they feel in the Dubai property market following the recent legislation developments."
Dubai is hoping to take the lead in creating a clear process for buyers and tenants to increase confidence in the market and make it easier for international clients to do business in the real estate sector.
Dubai's property watchdog, the Real Estate Regulatory Authority (RERA), has brought in a host of increased protection, including providing residency to overseas buyers of property worth more than AED one million.
Further regulations ensure that all lease contracts are registered through a government database and all transactions with the Land Department go through a centralised listing site for available property.
"DAMAC Properties welcomes recent moves by the Dubai government to tighten regulation in the property market which we believe will sort out the wheat from the chaff," said McLoughlin. "As the market in Dubai recovers strongly, it is important to have clear legislation which will instil confidence in overseas investors in particular."
Research house the CBRE recently stated Dubai Land Department figures which show an 82 percent increase in the number of transactions taking place in Q3 2012, compared to 2011. It said the number of deals in the third quarter was 2,873, compared with 1,578 last year.
McLoughlin says that buyers should insist on four key pieces of information when dealing with any developer in Dubai. "Insist they show you their trade licence, a contract in place with a master developer, title deeds and details of the account associated to the project you are interested in. These are now all required by law and every reputable developer should be able to supply you these very easily."
In addition to the benefits of a well regulated industry, the Dubai real estate market is also proving attractive to Indian nationals as there is no capital gains tax on either the property or any rental returns generated.
According to the latest data from Knight Frank prime rental in Dubai has grown by 3.3 percent over the first six months of 2012, outperforming more traditional international cities such as Singapore, London, Hong Kong and Moscow.
DAMAC Properties has completed 37 buildings to date with 7,817 units. The company also has a further 65 buildings at various stages of progress across the Middle East, North Africa region which will add a further 11,998 units.