Property in Dubai! A good investment or not?

Dubai's economic growth has taken the world by storm. Despite the recent slowdown in the US economy, a skyrocketing petroleum cost and a dampening outlook across most of the world commerce, Dubai's growth continues to baffle most media experts and industry watchers. What makes this story even creamier is the handsome dividends Dubai's real estate has been able to offer to its investors over the last few years. Expatriates living in Dubai form roughly 80% of the whole population. This, coupled with a large number of tourist arrivals, makes Dubai's real estate a cash churning machine. Be it major construction giants or individuals buyers hoping to buy luxurious villas and self-catering apartments, Dubai has been able to offer each of them with a place of right aura. Thanks mainly due to a visionary Al Maktoum family, which came to power in 1883; Dubai's economy has continued to grow despite of so many economic turbulences it had to go through since the World War II. Steps initiated by the Al Maktoums have made Dubai's oil returns inconsequential in the era of globalization. The emirate's GDP chiefly gets sourced from its free trade zones and tourism infrastructure instead. Most decisions taken by the successive rulers have been prompt and executed in a timely fashion. This made Dubai sellable and a growth-friendly area for carrying out business over the years. Global business partners, large FDIs and a highly skilled workforce have kept pouring in despite of the occasional negative clues from other economies. Recently, the government agreed to allow the outsiders to have a freehold property right. This wasn't the scenario until now. As a result, one could buy self catering apartments, Dubai villas and other freehold properties, if they wished today. Dubai's growing reputation as a city of many firsts in the world of architecture has given more colors to its overall charm. From the very first seven star hotel, Burj Al Arab, to the now under construction the tallest building of the world, Burj Dubai, the city continues to house many of today's world landmarks. As a result, tourists flock in large numbers to have a glimpse of this urban excitement each year. Summer used to be a holiday season earlier, but no more now. Year long fun, food and cultural fiestas - apart from the usual retail madness - make Dubai a place of joy and celebrations throughout the year. No need of underlining why self catering apartments, Dubai villas and similar other freehold properties could be a great investment offer in today's scenario. Many buy self catering apartments, Dubai villas and other freehold properties to have a place for vacationing when they may like doing it. Many others simply buy to rent them out to other holidaymakers. Rentals can be a great way for making money from this emirate. They can prove out to be a headache for those paying rents, and a great monetary reward for those receiving sums. Dubai's rentals are among the most expensive ones in today's times. They may give jitters to tenants, and a pleasant smile to property owners. Homes could be sold at a premium after a few years, since the real estate would continue to sore in Dubai in the years to follow. These aspects lead to many foreigners and expatriates buying freehold properties in Dubai as a way of making money. It's a win-win option for those who know how turbulent times they were living in in a highly globalized world.

Euro-ing in on property

Hungary has experienced a series of sweeping changes, which have transformed it from a Socialist country to a thriving market economy with its door firmly in the door of the European Union. Even during it's years as a Soviet satellite state, Hungary was the most developed, liberal and wealthy nation in Eastern Europe . Under socialism, it maintained a steady rate of development and with the dissolution of socialism in 1989; the city has entered the post-industrial age with a leading role of blue-collar workforce. The Hungarian Economy continues to grow, and inflation is at a low level relative to the rest of the emerging markets in Central and Eastern Europe .

Hungary was the first Country in Central Europe to join the World Bank and IMF in 1982. Over 30 Billion euros have been injected into Hungary since 1989, and the growth rate of FDI in 2003 reached 45%. Hungary was the first Country in Central Europe to join NATO in 1999, and became a full member of the European Union on 1 st May 2004.

Various Property Investment surveys have shown that in the last ten years properties have grown in value, on average, more than 350 percent. Between 1999 and 2003 Budapest property prices increased by 60 percent, and between 2003 and 2005 the economy has seen a growth rate of 15 to 20 percent. In the Budapest property market, rental incomes have provided minimum yields of 7 percent, rising to around 10 percent. There are a number of solid reasons and indicators to suggest that Hungary 's economy should continue to grow at current rates. Property investors can feel secure that there is still much more to gain from buying Hungarian property. Politically Hungary is stable and its system of government is transparent, which has led to numerous companies moving all or part of their European workforce in the country. Since the beginning of the 1190's the inflow of foreign operating capital has been the main source for the modernisation of the economic structure and for the improvement of competitiveness in Hungary .

With the introduction of cheap flights from major airports from around the world, tourism is increasing at a remarkable rate, and Ferihegy will soon become one of the busiest airports in Eastern Europe . In the first ten months of 2004 discount airlines brought 338'000 visitors to Hungary , and Budapest is among the ten most preferred International destinations. One important factor contributing to Hungary 's continued economic success is the drive towards adoption of the Euro, set for 2010. Government policy should remain sensible and stable in coming years as this target of further European integration is aimed for.

As an ancient European capital city, Budapest has many of the charms of other major European cities, which, coupled with the dynamism of the economy in the decade and a half since communism, makes the still very low property prices extremely attractive, for both investors and those looking for second homes in a European capital of culture.