Dubai was the first Middle Eastern country to embrace the idea of property investment from overseas property buyers and it has the most mature property market in the region. It has seen some very dramatic price rises over the past five years. Property rental returns have also been good for those with completed property, and with demand currently outstripping supply, rents have increased quite substantially in recent years.

While average property rental yields in Dubai are around eight per cent per annum, in Qatar and Bahrain, due to an even more pronounced gap between supply and demand, average yields stand at around 10-12 per cent. Property owners in Dubai and the Middle East have also seen significant capital growth, estimated at around 25 per cent over the past couple of years.

As more projects are completed in the region, the property markets in the region will undoubtedly adjust. Anyone looking to buy property now will be impressed with the figures over the last few years but should bear in mind that speculation and limited supply of finished homes have been major contributory factors in the region’s property price boom. With around 150,000 villas and apartments due to be built in Dubai alone over the next three years, investors should carefully consider the likelihood that the “boom” years might be coming to an end. As the resale market expands there will also be downward pressure on prices.

However, with the ambitious plans that some Middle Eastern states have to increase commerce and tourism, there is likely to be a sustained demand for quality property in some areas. And with prices still considerably lower than at home, UK property buyers might well consider a property in the Middle East as a good way to get a foot on the property ladder as a long-term investment.