Very interesting question, crosvs.
From the gate, I'd encourage a first investment closer to home, preferably domestic, since it's easier to understand & manage tenancy trends, market conditions, and tax details. However, there are many foreign property investments that offer great potential, especially for those who already hold investments elsewhere (hence related experience and a balanced portfolio).
If Dubai still looks specifically of interest,
this article conveys some good considerations: (excerpt)
Quote:
You perhaps have to take a view on the future of Dubai. Will Dubai be a thriving, multi-cultural trade, financial, tourism and services hub in 10-15 years time? Or will the city suffer some sort of socio-economic or political cataclysm? Those who have seen the past 20 years smile at predictions of gloom which have always been wrong in the past.
Besides even if your property is worth nothing when your tenants have finished paying off your mortgage you still have a roof over your head, or you can continue to take the rent as your income.
Then again, you could argue that Dubai property is expensive and that anyone buying now will regret not waiting for a while. But is this true? At $1,000 per square metre for a villa, Dubai real estate is five times cheaper than in London where the average salary is no higher and maybe lower.
This is the last, and most important, consideration for an investor. The reality is that Dubai property is cheap, by international standards, by local standards, by rental yield, in absolute terms, by whatever yardstick you choose.
What will change this? New real estate laws? A greater availability of mortgages? More buyers moving into the market? A more peaceful Middle East? The success of Dubai? Most likely all of the above, and thus real estate prices will increase over time.
Can an investor go wrong? Of course, anyone can make basic mistakes in buying real estate, such as choosing a poor property in a bad location. But it is hard to make a solid argument against Dubai property investment right now.
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More recent info here.
Hope this helps.