Property Ownership in Dubai
Interested in getting in on the Dubai condo hotel trend?
Perhaps youve heard all the excitement about Dubai
as an investors dream.
you think this new type of vacation home ownership sounds
right for you. After all, a condo hotel unit, or condotel,
is typically located in a great vacation destination.
Its in a four- or five-star property. And a management
company takes care of all the hassles typically associated
with ownership, including maintenance issues, operation
of the amenities and services, and finding hotel guests.
Dubai Condo Hotels in Pre-construction Phase
With many new condo hotel properties coming on the market
in Dubai, when is the best time to buy? The answer is
easy; in early preconstruction phases.
developers in Dubai begin selling their condo hotel
units long before the property is built, and often before
even the first shovel-full of dirt is overturned. The
idea behind a preconstruction purchase is that youre
buying tomorrows property at todays price.
Deposit Holds Your Dubai Condo Hotel Unit
In most cases, you reserve your condo hotel unit with
a deposit of about 50%. That may sound high, but remember
prices for Dubai condo hotel units are about one third
the price of comparable U.S. units.
deposit goes into an escrow account of the developer.
The balance is due when construction is done and you
close on your unit. Some developers do require payment
in full before building completion.
How long does it take to build a condo hotel? The weather,
availability of building supplies and the citys
permitting process are key factors. Generally, the construction
process takes two years to complete. The developer or
your salesperson should keep you apprised of the buildings
Makes Preconstruction Appealing
Some people wonder why they should buy in preconstruction
phases in Dubai. After all, your deposit monies, 50%
of the purchase price or more, are tied up for one to
two years. The answer is you get in on the ground floor
when prices are lowest and unit selection is greatest.
the condo hotel is being built, it is gradually appreciating.
And in a place as favorable as Dubai, that appreciation
can be significant, certainly well into double digits
for each year that passes. Additionally, developers
implement planned price increases at various stages
of the selling process, often as many as three to five
you purchase your Dubai condo hotel unit at a preconstruction
price, it potentially could be worth significantly more
at completion. When you sell, that translates into a
higher profit for you. The actual profit of course depends
on the general market conditions, interest rates and
with an Industry Expert
If buying a condo hotel unit in Dubai in the early preconstruction
phase is best, how you do you find out about projects?
After all, if youre like most investors considering
Dubai these days, youre not living in the city.
And even if you were, its not as if theres
a building structure to catch your eye as you drive
best bet is to find a realtor who specializes in Dubai
condo hotels. He or she can keep you informed of new
condo hotels coming on the Dubai market and tell you
which ones he would recommend, and which ones you should
avoid, and why.
can provide you with enough data to comparison shop,
ensuring you compare apples to apples. He may be able
to offer better choices for your consideration than
the Dubai condo hotel you may have heard mentioned by
a friend or in a newspaper article.
specialist whom you choose should be familiar with Dubais
condo hotel developers, building trends and unique buying
requirements. He will represent your needs first and
foremost, not the developers, and will successfully
guide you through the buying process, answering all
of your questions and ensuring that all of your needs
more information, contact Joel Greene, President of
Condo Hotels Dubai and Condo Hotel Center (www.CondoHotelCenter.com).
He specializes in the sale of condo hotels and is the
foremost U.S. authority on Dubai property. Joel can
be reached at info@CondoHotelsDubai.com
or call (305) 450-1929.