Due diligence points for Dubai property

Q. I hear all sorts of feedback on quality. How can I be sure that my property is of reasonable standard?

A. Local developers also have a good track record of putting problems right if they occur, and in extreme cases have offered alternative property or their money back. You could be unlucky but will not be left out-of-pocket.

Q. There is no legal title. How can I be sure that I can sell this property that I do not really own?

A. In practice Dubai property rights are assured by the Crown Prince General Sheikh Mohammed bin Rashid Al Maktoum. What more do you want?

Q. This is a very extreme climate. What happens if my villa falls down within 15 years, or the pipes leak?

A. Villas are built of concrete and while not likely to outlast the pyramids are more than likely to outlive their prospective owners. Have you not heard of a plumber with regard to fixing leaks?

Q. I have heard electricity and water bills are very high on some properties. Is this a property tax in disguise?

A. Yes, if you buy a huge villa of course the utility bills will be high, so buy a small one if you can't afford these bills.

Q. Property has gone up in price very fast. How can I be sure that I have not missed the boat, and that prices will fall from here?

A. Try to think more long-term, and remember how much you will pay in rent if you do not buy; in that sense all buyers win over rent payers whatever happens to the market. Besides that prices are still low on international comparisons.

Q. The multiple-occupancy ownership structure for high-rise property has not been sorted out. It might be a mess.

A. Well, it has been sorted out and Residency Associations are being elected in high-rise projects owned by Emaar. Nobody is jumping from the windows just yet.

Q. Mortgage rates seem rather high locally by comparison to US rates.

A. True but they are falling. Amlak Finance is offering 5.9% at the moment against 7% a year ago. And as more competitors enter this market borrowing costs will fall, which should be good news for house prices.

Q. House prices have doubled in three years in Dubai, it must stop soon?

A. Markets will go up and down but house prices in Dubai are around one-third of levels seen in UK towns of comparable size. Indeed, on any international comparison Dubai property remains cheap in absolute and relative terms.

Q. I am still not convinced!

A. Get a life, or better still a nice house in Dubai…