Real Estate Industry in Dubai Vis-À-Vis UAE and the Middle-East Economy

Once, the Middle East was ignored as a strife-torn region. The cosmopolitan culture of UAE and Dubai real estate has attracted tourists and investors. The region has turned into an active trade hub. The free zone and the Dubai real estate industry have changed the landscape. Dubai real estate has become the interface of the rapid transformation in the Middle East. It has catapulted the UAE economy as a leader amongst Arabic nations. The release of freehold property has, in one master stroke, led to the current development of not only Dubai real estate but also other businesses in UAE. The dynamic increase in Dubai real estate has prompted the neighboring areas also to think of similar ways of attracting investors. The Dubai real estate has become a landmark in development and other states have also opened up their locked lands to foreign investors. The economic trends in the Middle East are now being guided by the Dubai real estate development indicators.

The Dubai real estate economic model is being studied by business groups for future investment in the Middle East. Let’s not forget the first economic boom, thanks to the crude oil market. The prosperity has continued with active participation of Dubai real estate developers. The revenue from oil helped the Dubai real estate to continue with rising economic trends. Unfortunately other Arab nations did not capitalize on the oil boom. With UAE in the saddle with rising Dubai real estate, it is a prime example of not depending on oil reserve. The Dubai real estate boom has helped Arab nations to welcome overseas investors. The ability of good governance has also helped the Dubai real estate industrial model to be replicated by other Arab nations. The fact that UAE has stopped depending only on oil for survival has been understood by other groups. With overseas developers entering the Dubai real estate sector, they have sent positive signals to their own countries too. Attracting forex in the region has facilitated the economy of these regions.

Despite the waging war in Iraq, the other Middle East nations have stepped forward to accept the Dubai real estate sector model to improve their own dependence on merge desert resources. The sands are now being transformed into gold as investments flow in with Dubai real estate sector. With Dubai real estate properties being showcased in the world, the Middle East is looking forward to challenge the China dominance in the world market. While China can become the world’s backyard for mass products, the Middle East is a source for business growth with the Dubai real estate model. Private investors are being encouraged in putting collective brains to banking, telecom, IT, healthcare and education sectors. For the simple reason, if Dubai real estate sector can flourish, then why not these too? Other economies are trying to emulate the successful Dubai real estate sector. Oil has made the UAE rulers king, but the burgeoning Dubai real estate sector will turn them into emperors.

Final Tip: Qatar’s rising economy may be shadowed by Dubai’s real estate sector which in turn is a haven for foreign investors.

Dubai Real Estate: Current Rental Scenario

For long, people from developing countries have lived and worked in the UAE with simple accommodations provided by local sponsor. They rented apartments but none were able to own any real estate in Dubai. In 2000, the opening of freehold property has allowed the workers to opt for second homes and put them on rent to new comers in the Emirate. As real estate in Dubai is a sunrise industry, the current rental scenario is undergoing change. The property laws are being rewritten to allow investors and workforce to buy real estate in Dubai in the form of commercial or residential space. So what property advice can one get from experts on the current rental scenario concerning real estate in Dubai? This would include all aspects of real estate in Dubai, counting changing rental rates, purchase formalities, dealing with official agencies and getting loan facilities. The time is ripe for individual investors to make assets that will appreciate in any form of real estate in Dubai.

The Dubai Land Department provides all information relating to property deals of real estate in Dubai. For the last 47 years, this department has kept a close watch on all land deals and the registration of all property concerning real estate in Dubai. There is a paradigm shift in the rental scene concerning freehold real estate in Dubai. This is because the UAE government is giving preference to the real estate in Dubai. It has become necessary for every investor to keep in touch with current rental market prices of real estate in Dubai. The leasing costs of many properties of real estate in Dubai are increasing. Inflation is not the only reason for it. The population growth and rapidly increasing opportunities in allied sectors of real estate in Dubai have also contributed. Engineers, architects, designers and brokers have also contributed to the benefits that real estate in Dubai is providing to the citizens. What has become straightforward and trouble-free is the loan facility to buy second homes as part of emerging real estate in Dubai. Now one can get easy mortgage, which means new rentals will make real estate in Dubai more lucrative to existing citizens.

There is no likelihood of slump in any type of property of real estate in Dubai for at least the next ten years. The investment markets have helped in rising rentals of major property investors of real estate in Dubai. The best properties of real estate in Dubai to rent would be the newly developed luxury homes, villas, 2-3 bedroom apartments (good for small families) and small offices to set up business. The current rental prospects can be availed of by long term residents who have aspired to make their real estate in Dubai yield more Dirhams to have a better lifestyle. Brokers and estate agents provide information regarding current rentals of real estate in Dubai. Rising rentals will not deter new development nor stop emerging properties to pay back revenues for existing investors for now at least.

Final Tip: Keep a check on the property laws; they are still being revised from time to time.

The Role of Government in the Development Of Dubai

The pre-dominance of the Dubai property sector has attracted the attention of many buyers and investors in UAE. The rise of Dubai property segment has proved that the stable government is the backbone for survival. Since the oil boom, the policies, property laws, polity and governance of UAE have been citizen-friendly. Now with focus on Dubai property, the bulwark of government machinery to safeguard and control real estate development is already active in many areas. The Dubai Land Department and RERA are the main government bodies that monitor all Dubai property development.

Some of the main areas that the government is monitoring Dubai property concerns with the revision of laws after the freehold land has become open to overseas developers, investors and buyers. It was only in August 2007 that the government declared a law on mandatory escrow accounts for all Dubai property developers and builders. This is very critical as not all Dubai property builders are reliable. To protect the buyers, it was natural that the government passed this crucial Dubai property law. With this one law, the Dubai property developers have been put on leash. In compliance of this Dubai property law, it is now compulsory for all monies paid by off-plan buyers to be held in separate escrow accounts. The funds can be released only when Dubai Land Department permits it. The government itself is the biggest Dubai property developer. It will have to lead by example and help other Dubai property builders to follow. At the moment, the biggest attraction is the rental yields for buyers of Dubai property. Some buyers have also invested in Dubai property under construction. This means the financial flow has to be smooth. If any project is affected by non-flow of funds it could create tremors of uncertainty. This would only fuel rumors of crash of some Dubai property, which would ruin the government’s painstaking efforts since 2000.

The government has to constantly regulate the Dubai property development least it turns into a nightmare for all related sectors and people. The onus lies on the Dubai land Department and RERA to ensure Dubai property will not slide and affect the region’s economic growth. In fact, the entire Middle East region is dependent on continous Dubai property development. The Real Estate Regulatory Authority (RERA) CEO, Marwan bin Ghelaita has a special role in making real estate development in UAE more stringent. The escrow account which has come into existence will slowly be extended to all projects related to Dubai property by the beginning of 2008. Buyers, who have become jittery about some delayed projects of Dubai property are now confident that their investments are safe. The repercussions of the new LAW No. 8 are apparent. Few Dubai property builders have announced any new projects. Meeting the three important criteria of RERA has stopped the unchecked growth of Dubai property. For all practical purposes, new investors have to toe the government’s regulatory line before opting for investments in Dubai property projects in future.

Final Tip: Brace up for more regulations as the Dubai Land Department formulates rules for delayed projects post 2007.

Jumeirah Lake Tower Community

The Jumeirah Lake Tower Community is a huge complex, a perfect case in point of how freehold Dubai property can be developed with creativity for community living. It is the first mixed free zone, freehold land development of Dubai property supported by the government. It is a waterfront district in the neighborhood of new Dubai. This exclusive business and residential address is being developed by Al Nakheel - reputed Dubai property builders. Designed as self-contained township, it has residential and commercial towers along with designated shopping areas, hotels and entertainment zones. A prestigious postal address - this Dubai property is situated near Sheikh Zayad Road between interchanges 5 and 6. Nearly 79 towers (more will come up) are available to citizens of this exclusive Dubai property development. This freehold Dubai property can be bought by foreign investors. It has already attracted many buyers.

The Jumeirah Lake Tower is set in groups of three towers. The waterfront Dubai property is landscaped, has waterways and is surrounded by four lakes. Absolutely safe and secure, this Dubai property is worth investing in. The four man-made lakes look natural, an added advantage for the occupancy of every part of this Dubai property. It covers nearly 255, 000 square meters of land, making it an aqua-themed Dubai property. The four lakes are called Almas East, Almas West, Elucio and Allure. The waters of the Arabian Gulf are pumped everyday to give a unique aqua-structure to this Dubai property. Already the DMCC part of Dubai Municipality will provide licenses for various businesses in the commercial section of this Dubai property. Since it is in the free zone sector, many businesses are likely to benefit from this part of Dubai property.

The freehold Dubai property, Jumeirah Lake Tower is close to two golf courses - Emirates Golf Course and Montgomorie Golf Course. The Hard Rock Café is also close to this prestigious Dubai property. Other areas that are close by to this Dubai property include Dubai Marina, Dubai Internet City, Media City, American university, Dubai Marina and The Palm Islands. Even the Jebel Ali free zone is close to this Dubai property.

Some of the projects which are under construction in this Dubai property include Lake Plaza Armada, Al Waleed, Al Seef, Falcon Tower, Green Lakes Tower, Madina Towers, Lake Terrace, Fortune Executive, Dubai Gate, Laguna Tower, Indigo, Tamweel Tower, Palladium, Dubai Arch, Saba Tower to name a few. All the projects being developed on this freehold Dubai property will have international amenities and services. The commercial spaces and offices will have state-of-the-art business facilities and conference centers. The residential towers, having 2-3 bedrooms apartments in this Dubai property, are equipped with safety features, swimming pools and fitness centers. Since it is a waterfront property, it has a beautiful promenade. There are shops nearby for all provisions making it a self contained Dubai property. As job opportunities help people to relocate in Dubai, property here will sell quickly. It is a matter of time that this waterfront complex gets fully occupied.

Final Tip: Amongst all the upcoming projects of Dubai property, the Jumeirah Lake Tower will be sought after by first time home owners who wish to make a home in UAE.

Business in Dubai Real Estate Sector

The growing number of multinationals entering the UAE indicates that they have a good reason to grow financially in the region. Many of them are diversifying in Dubai real estate, eyeing the available opportunities. The focus is on expanding business prospects in Dubai real estate which is the most lucrative. The Dubai real estate sector has given an open invitation to nearby Muslim countries and western countries to develop infrastructure, residential complexes and commercial properties. The demand for commercial space in Dubai real estate has increased prices and other costs too. Since it is the business community that will continue to generate revenue, some areas have become premium Dubai real estate properties. A few of the progressive landmark properties of Dubai real estate include The Capital Bay, Haz Tower, XL Tower. Many multinationals are making the 19-storey Haz Tower their new business address. As Dubai real estate business steadily grows, offices in this facility are coveted. Other commercial properties include Iris Bay, Silver Tower, The Binary, Matix, Bayswater, Executive Heights and The Summit.

Business in Dubai real estate construction is attracting many overseas developers. There is enough an challenging work for architects, civil engineers, unskilled labours and contractors as Dubai real estate beckons them all. Worldwide Dubai real estate exhibitions are showcasing some of the most prestigious properties that will come up in the region. The focus in the coming years will be on those properties of Dubai real estate that will be environmentally friendly and have sustainable development. As global warming concerns are spreading, Dubai real estate developers are conscious of the threat to environment in the region. The green revolution is now the main keyword of every new development of Dubai real estate. One of the leading developers of Dubai real estate, Al Nakheel Properties has already taken the initiative to start environmental-friendly projects. They are working with international consultants- Sustainability Advisory Group. It will focus on energy efficiency and waste management. They plan to monitor the Arabian Gulf waters to balance the marine ecological system.

As Dubai real estate focuses on construction activity, the steps to streamline parallel environmental development is of paramount importance. Since 2002, Dubai real estate has attracted the best creative professionals to make UAE the leader in this sector. Business is safe as RERA controls and monitors all Dubai real estate. The Dubai Land Development’s new escrow law 8 has made Dubai real estate sector more investor friendly for end-users, developers and investors. Emaar Properties, Tanmiyat Investment Group, Al Nakheel, Aldar Properties, Dar Al Arkan are some of the reputed developers of Dubai real estate whose various projects have attracted buyers and investor groups. As Dubai real estate continues towards sustainable development, market watchers around the world are predicting continuous growth. Business men wanting to relocate in UAE can rest assured that with prospering Dubai real estate, they will be able to enjoy their investments for long. As long as Dubai real estate is stable, even entrepreneurs will reap good results.

Final Tip: Keep a close watch on property laws released by Dubai Land Department before making any commercial investments.

Making investment in Dubai real estate

If the sand dunes in the Middle Eastern deserts are reverberating with constant explosion, it is because of the hectic construction activity in UAE. Dubai real estate has outpaced other developing economies. Today making investment in Dubai real estate is the best option for businessmen wanting to expand their financial portfolio in the region. What makes Dubai real estate so lucrative for individuals and for companies entering the Emirate?

The answer lies in the freehold land which is attracting billions of dollar investment in Dubai real estate. One of the most stable government in the Arab world, the only mission and vision of the Dubai rulers is to make it a stable land of opportunities. The vision is already taking shape in the stunning skyline that is attracting tourists, job seekers, entrepreneurs and multinationals to make investment in Dubai real estate. In a world that is seeing downslide of some major economies, UAE is registering a steady rise due to investment in Dubai real estate. While USA’s credit lending facilities have slowed down, interest rates have lowered; Dubai real estate has created a fine balance in investments. More committed investors have put monies in rock steady Dubai real estate sector. The oil prices still position UAE in a leading situation. If one looks at the Dubai real estate status, it is similar to what Hong Kong went through in the early 1990s. Investments in Dubai real estate properties are going through the same. UAE has large oil reserves, even if outside investors back out of Dubai real estate. The alarm bells will not ring for at least another ten years in the Dubai real estate sector.

But there are warnings against rogue builders that could ruin dreams of investing in Dubai real estate. Be careful, as the builder’s reputation matters most while buying any Dubai real estate property. An individual buyer can look at a single dream home in Dubai real estate to begin with. The values of older homes have increased, even though new properties of Dubai real estate are coming up. Some projects are prestigious but be careful not to get carried away by tall claims. The government has rightfully created a Dubai Real Estate Regulatory Agency (RERA). It functions as part of the Dubai Land Department and monitors the investments made in Dubai real estate. It has sent out a message to all potential buyers, to ask for three key points before they make any genuine investment in Dubai real estate residential homes. The three valuable key points to be noted are:

1. The registration of real estate company is with RERA. Ask for company’s code number.

2. All payments/instalments of the property of Dubai real estate are made in their trust account in a financial institution approved by RERA.

3. If dealing through a broker, he should have a registration number and ID card to sell Dubai real estate property.

Making a safe investment in Dubai real estate is critical even in a booming economy.

Final Tip: Ask for developer’s credentials before investing in any project

Latest rules and regulations in Dubai Real Estate

With a flurry of activity going on in the name of real estate in Dubai, there has to be absolute clarity in regulations. The opening of freehold land has changed the rules and relegations. Many new users are vying for a piece of land in the tropical Arab sun. As expatriates are buying real estate in Dubai, it is advisable to know the latest rules and regulations which govern them. Some good real estate in Dubai is in short supply to foreign investors. The developers and brokers have hiked prices of some properties of real estate in Dubai. By monitoring new directives laid down by the government, one cannot make mistakes while buying real estate in Dubai. Some foreigners are expecting change of rules to suit them, as high rentals are now forcing them to buy real estate for long term living in the country.

Some land deals of real estate in Dubai are expensive. These properties come with luxury trappings and a safety net for families’ wishing to invest in homes. The ones affording real estate in Dubai are high net worth individuals. They choose seaside properties, villas and luxury apartments in Dubai Marina. Some spacious properties of real estate in Dubai are booked in advance during the construction phase. The growing credit facilities, increase in population and visitors are making the government more open to expatriates. The change in the rules and regulations for real estate in Dubai is inevitable. In 2006, one of the Dubai property laws concerning registration underwent changes. The Lands Development will be the only recognized authority to register real estate in Dubai. The property rights will include right of freehold ownership, rights of usufruct and lease up to 99 years, rights of Musataha, collateral rights, restrictions and mortgages against real estate in Dubai. The right of Musataha is the right to use and exploit the property of another person.

For better understanding, consult an experienced broker on real estate in Dubai. Consulting is essential before buying any real estate in Dubai. Regarding the ownership of commercial real estate in Dubai, Article 4 of the Dubai property law mentions UAE citizens and their companies can own property rights in Dubai. A company formed in UAE having foreign shareholders will not have rights over that real estate in Dubai. There is an exception to public joint stock companies. Emaar and Union Properties developers of real estate in Dubai fall under this bracket as both are registered in the Dubai financial market.

Foreigners can have freehold property in select lands area and not any other real estate in Dubai approved by the regulation No.3. These are called ‘designated’ areas. The maps of ‘designated’ areas are available before buying any real estate in Dubai. Foreign companies can have freehold properties up to 99 years. Long leases of real estate in Dubai in undesignated areas can be given to non locals but with a caveat. Some of this real estate in Dubai is not included in the Law.

Dubai Real Estate Regulated by Dubai Land Department

Had it not been for the futuristic initiative taken by the government, development of real estate in Dubai would have been sluggish. The real estate in Dubai along with tourism has given a boost to the economy. Today, the real estate in Dubai meets international standards and it offers luxurious residential habitats, commercial office space, entertainment zones, and exclusive spaces for various industries. The Dubai Land Department has been monitoring the sale and purchase of all deals in UAE. It was established in 1960 and till today it holds fort and controls the real estate in Dubai. It also protects the interests of the locals and does not allow embezzlement of any real estate in Dubai. Over the years, it has helped in various land transactions between landowners and potential buyers. They have also helped legal heirs to have custody of real estate in Dubai wherever applicable.

Today even expatriates turn to the Dubai Land Department when they wish to make any investment concerning real estate in Dubai. All the land registration of real estate in Dubai is maintained by this department. Since the Dubai Land Department is a part of the government, it does all the documentation of real estate in Dubai. For immediate enquiries one can call up the department or even use the call center facilities for enquiries related to real estate in Dubai. With hectic construction activity going on in every sector of real estate in Dubai, there are also online services to help buyers and owners. The Dubai Land Department also helps in giving other information and related formalities to real estate in Dubai like making registration forms, monthly and daily trades, ownership certificates, evaluating lands and also registering land sales. The property laws regarding the real estate in Dubai are changing. One can get latest information from Dubai Land Department. Other than that, one can ask for registration numbers of brokers and estate agents who deal in real estate in Dubai. Most of the brokers are allowed to take a fixed amount of commission while transacting any real estate in Dubai. One can also get full information on development of trust accounts concerning any real estate in Dubai.

With the opening of freehold land, many foreigners wish to know more about the laws related to buying real estate in Dubai. Land can be purchased through Emaar Properties, the Palm project and Jumeirah but any other type of real estate in Dubai cannot be purchased. They can buy only those properties which have been approved by the government. The Dubai Land Department also gives information if some company wants to buy commercial real estate in Dubai. More details can be sought from the Dubai Land Department which is the official channel regarding real estate in Dubai. Once a buyer goes through the official channels to buy real estate in Dubai, it is not difficult to buy property. The Land Department has an experienced staff to help citizens in matters concerning real estate in Dubai.

Final Tip: Online services of the Dubai Land Department are quite useful.

Property Rates in Dubai

The National Bank of Dubai keeps a close watch on property in Dubai. It indicated in 2006 that the inflation rate is around 18-20%. The rates of property in Dubai are being controlled for a sustainable development in the emirate. Every factor contributing to the increase in rates of property in Dubai is monitored. Allied utilities like gas, education and healthcare have also been responsible for inflation of property in Dubai No cause to worry even if it increases, as the growth of the economy is being controlled by a cautious government. Not to forget the rates of property in Dubai are tied up with USA Federal Reserve rates.

Working class families will feel the pinch in increase of the rentals of property in Dubai. If they are to buy another home, they need to work out the lending facilities before investing in any property in Dubai. This will mean that only the genuine buyers will look at developing projects, not any type of property in Dubai. Some people prefer rentals rather than buying property in Dubai. Will investing in real estate be lucrative? Yes, if other factors are taken into consideration- like loan facilities and a promise that the property in Dubai will always appreciate. Foreign buyers are still expecting some rules to change in their favor for purchase of property in Dubai. Those getting high rentals for their properties are likely to invest in a second home making a good property in Dubai. There is no fear right now of the real estate bubble to burst due to any inflation or high rentals.

Rates of some property in Dubai districts will remain high. The Palms, Jumeirah, and The Golden Mile are already getting good re-sale value. These completed projects are high-quality property in Dubai. Home buyers realize that home investment is long term and needs more planning over the years. Rates of property in Dubai will go up, mortgage will increase and inflation will double. Dubai government is learning from the western economies where rates of property in Dubai have been dictated by various factors. They can avoid the pitfalls of property in Dubai going sour.

The rates of property in Dubai differ with central air conditioning and non central air conditioning. In Sheikh Zayad Road, rates are about 38 thousand – 48 thousand for studio apartments to 100-120 thousand for 3-bedroom apartments. In Riggah & Muraqabat, Naseer Square, Abu Hail around 33 thousand-25 thousand for studio apartments. The rates are in AED currency and are likely to change by 2008. There is construction activity going on all property in Dubai. Labor from all over the world is being hired to speed up all development of property in Dubai. Big developers like Damac Properties, Emaar Properties, Al Nakheel Properties, Sabah Real Estate Group, Tanmiyat, Estithmaar etc are changing the Dubai skyline with many skyscraper projects being sold in the construction stage. They are also participating in real estate exhibitions to showcase their properties outside Dubai to invite more buyers.

Final Tip: Sometimes negative property rates are good indicators for buying.

Dubai Property Mortgage Scene

With more expatriates making a beeline to Dubai for job opportunities, it is no wonder that the cost of living in some property in Dubai have risen. Everyone wants to live in spacious homes in a superior property in Dubai. With the freehold property in Dubai opening up, the costs have risen between 12-25 % depending on the locality and available property in Dubai. Private builders are making property in Dubai more lucrative. They have luxurious complexes, upgraded construction and are giving good loan facilities to genuine buyers of property in Dubai. The mortgage scene in the emirate is now competitive and aggressive as various local and multinational banks are also making it easier to buy property in Dubai.

With property in Dubai in demand, the mortgage scene is in the nascent stage. It is easier to have credit facilities for property in Dubai than in UK or US. Rentals give high property yields. There is an increase in nearly 15-20 % rental of property in Dubai. This is bound to happen in a burgeoning sector which makes property in Dubai lucrative. The falling US dollar, higher oil prices and stock markets are responsible for alternations in the mortgage scene in the emirate. The increase or decrease in rental yield motivates the law and regulations concerning property in Dubai. The government is learning and growing and should change some Dubai property laws. The Crown Prince wants to make every property in Dubai a comfortable place to live in. The formulations of some lending companies are likely to change the way Dubai property market develops. Local banks like Tamweel, Amlak, and international banks like HSBC, Standard Chartered Bank, RAK Bank, National Bank of Dubai, Abu Dhabi Commercial Bank and United National Bank now all lend mortgage for property in Dubai. They have on and off plans too, but they have different terms of lending credit and loans for Dubai property. Some of them will lend only to the local residents. Some banks allow loan facility for property in Dubai. Even international property can be mortgaged against credit in Dubai for investment.

There are different rules adopted for lending rates for property in Dubai. Not all projects are listed in the rule book. So if a person has chosen a home in a project that is not covered by any of the banks then mortgage is difficult to obtain which happens while investing property in Dubai. Every borrower is assessed by the financial institution before credit is advanced for property in Dubai. This regular parameters like monthly salaries, paying capacity, EMI etc. It is immaterial how the property in Dubai might develop in future (it may appreciate or depreciate depending on the locality or reserve strength of the builder). Lenders for property in Dubai do not recognize large down payment with small loan. This could prove to be a setback for some buyers wanting property in Dubai. This means one should be aware of borrowing ability to invest in property in Dubai.

Final Tip: What could work favorably is a pre-approved mortgage.

Property in Dubai

Dubai, the jewel of the Middle East is a virtual summer holiday capital of the western world. Property in Dubai is attracting Asian investments. The biggest reason is unlimited opportunity to invest in property in Dubai. In the last five years, Dubai has said Ahlan Washlan (welcome) to expatriates buying property in Dubai. In 2001, the crown prince, Sheikh Mohammed bin Rashid Al Maktoum allowed foreigners to have a 99 year old Dubai property lease. He sent a positive signal to realtors and investors regarding developments in property in Dubai. The permit to buy freehold property in Dubai, allows foreigners to work long term. This has accentuated the region’s growing popularity amongst the expatriates.

Buying property in Dubai is likely to be lucrative for most people working there. A combination of the government’s liberal policies for rentals and investments in commercial and residential sectors has triggered a global interest in property in Dubai. It has fuelled the growth of premium asset allocation of property in Dubai for local citizens also. The golden sands now have the glitter of gold souk with premium property in Dubai for sale all over the country. Traders find Jebel Ali port an attractive property in Dubai for investment. Being a free zone hub for trade and commerce linking east and west, the Jebel Ali port facilitates 24 hour services with state of the art infrastructure and easy tax structure. The Dubai airport, business parks, Media City and Knowledge City are also attracting global companies to invest in property in Dubai. Recognizing the potential of job opportunities and living prospects, the Dubai property sector is geared to provide expatriates more leverage. The government has allowed private developers to construct world class facilities. Some of the largest local developers who are in the forefront of development of property in Dubai include Emaar Properties, Al Nakheel Properties, Damac Properties, Sabah Real Estate Group, Estithmaar Realties (handled by the government).

The explosion of property in Dubai has employed many skilled professionals and unskilled labor from Asia. The fast construction ands development rate of every property in Dubai has virtually changed the skyline of the desert. Apart from the property in Dubai, other factors that make expatriates chose to live in this burgeoning Gulf emirate include its:

• Cosmopolitan culture

• Environment,

• Laws against drugs

• Lowest crime rate in the world

• Education for children

• Salaries and living conditions

As the economy rises, high net worth people are considering investments in property in Dubai. Other advantages in buying property in Dubai include:

• After living for five years, one can rent out property in Dubai. One can get a year’s rental in advance making it a viable proposition.
• Property in Dubai bought as investment or for living, appreciates over the years. The asset is worth buying any time in comparison to equity, stocks or bonds. Property investment defies inflation too!
• Property in Dubai is much cheaper in comparison to many other cities in the world.

Final Tip: There is still time for the Dubai property bubble to burst in the Middle East. Buy now!

Property in Dubai in the Context of Current Rental Cap

Property in Dubai may continue to be at a high price if the current rent cap continues. In fact, the rising prices will probably continue to affect investors for the next five years or so. The other factor that will feed into this is the shortage of supply as compared to the demand of property in Dubai. Property in Dubai will not come for less unless the rent cap is removed.

According to the statistics available with Dubai Chamber of Commerce and Industry, property in Dubai will witness equilibrium with respect to the supply-demand ratio only by the year 2023. Even then, it will be possible if the emirate’s government does not come up with any new policies for property market in Dubai.

A state of equilibrium means that demand will be equal to supply and thereby property in Dubai will be available at stabilized prices. The simplest way in which this can be done is by increased governmental effort to supply more property units in Dubai market. Important sectors to be enhanced in this regard are the mortgage sector and the property development sector.

According to the afore-mentioned study by Dubai Chamber of Commerce and Industry, property prices in Dubai have gone up by 10 percent in terms of cumulative annual growth rate. The long term rise in this regard has been about 4 percent which means an average increase of 7 percent in property prices in Dubai. The latter in turn is equal to the current rent cap in Dubai property market.

The increasing demand of property in Dubai has been influenced by the following factors with respect to governmental policies:

• Population

• Availability of mortgage

• Cost of mortgage

• Income

On the other hand, the supply of property in Dubai has been and will be influenced by the following factors:

• Cost of production

• Technology of production

• Financing of property units in Dubai