UAE the Latest Destination for Overseas Properties

It has been reported by the property website Prime Location that searches for properties in the United Arab Emirates increased by almost 50% towards the end of 2011. It appears the desire for a holiday home in mainland Europe has subsequently dwindled as the number of searches for properties in destinations such as Spain, Portugal and Italy each fell by around 15% in the fourth quarter of 2011.

This fall is mostly likely due to the European Debt crisis and the current state of the Eurozone. Despite the cheap property prices, people are still wary of how the situation will play out long term and may prefer to avoid the risk until the situation is definitively resolved. One way for individuals to continue to purchase properties in the EU with minimal risk is to take out overseas property insurance.

The UAE boasts many benefits for UK buyers, in particular higher rental yields than many other countries.  DAMAC Properties, one of the Middle East’s largest private developers, state the returns on premium real estate are around 3 times higher than receiving interest from cash in the bank. In addition to this the UAE is well known for their low tax rates which is extremely attractive to British Expats.

Financial benefits aside; the year-round sunshine, iconic buildings with jaw-dropping heights, scenic coastlines, rich Middle Eastern culture and seemingly endless opportunities to indulge your shopping habits are more than enough reasons for Brits to direct their property searches towards this luxurious country. With this in mind however Nigel Lewis, property analyst at Prime Location, urges buyers to “ensure they understand the property laws in the country and to safeguard against any unwelcome legal surprises”.