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

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

Property in Dubai as a Long-term Investment: A few Guidelines

Property market in Dubai shares features of any other international property market. These include (and are not limited to):

• Fluctuation of property prices

• Popular locations for buying property

• Coming up of new property developments

Yet there are regional factors that make Dubai property market stand out. Following are a few guidelines on buying property in Dubai:

• Dubai property sector is constantly coming up with new developments. Check out all of these before investing.

• It is a known fact that property prices in general have been on the rise in Dubai. At the same time, one must not forget that with a plethora of properties, one can easily find what suits one’s pocket.

• Dubai government has limited foreign ownership to a few areas in the emirate. So in case you are a foreign national contemplating to buy property in Dubai, be aware of all available options through a reliable property agent.

• Striking a good bargain is not so easy in this booming property market. But if you know the market thoroughly, you’ll be able to find investments with a good profit margin. So do not be hasty in taking the final plunge.

• Get conversant with the Dubai escrow law. It has indeed made life easier for the buyers, sellers and developers of Dubai property.

• It is also a good idea to rent out your Dubai property. Survey current rental scenario to maximize your chances of making profit.

• There is a vast pool of properties in Dubai that have not been tapped properly due to lack of advertising. Consequently, these are a good value for money. Jumeirah Lake Towers, Business Bay and Festival City still have affordable property units.

• There are areas in Dubai property that have still not reached their full potential. Invest some time beforehand to understand the state of the market and grab these.

• Off-plan sale/ purchase is a regular practice in Dubai property market. Off-plan property units offer good business potential as the prices are usually lower than those of completed projects in the same community. Be well aware of the nitty-gritties of such a transaction however.

• Buying property in state of the art projects like the Palm and the World might look a costly option at the moment but one must bear in mind that in the long run this is a profitable investment.

A Study on Dubai’s Property Market

The property market in Dubai is always in a state of flux. The most sought after question in the minds of investors, realtors and developers alike is what would be the scenario of Dubai’s property sector in the days to come. There are a number of factors that affect the property matrix at a given place and Dubai is no exception. Following is a study on Dubai property market which will attempt to throw some light on the present and future state of affairs in this regard.

The most prominent factor that has influenced property sector in Dubai is the supply-demand equation. At present, a large number of property units are under construction in Dubai. At the same time, there is an ever-increasing demand for all kinds of property units in the emirate. Dubai property boom has been the talk of the town ever since the inception of the freehold property law.

Types of investors tapping Dubai’s property market:

• The large number of properties available in the market attracts investors wanting to get some quick returns.

• The constant inflow of jobseekers to Dubai accounts for expatriates always on the lookout for residential property in the emirate.

• Tourists drawing towards this booming holiday destination wish to have a comfortable living experience.

Property developers in Dubai are constantly vying with each other to offer attractive launch prices. The availability of property units in state of the art projects like The World and The Palm has transformed Dubai into an investor’s dream come true.

Increase in demand means increase in prices. Investors in Dubai property market have got great returns to their investment, which in turn has acted as a catalyst in drawing more investors. Consequently, there has been more demand of property in Dubai and so on. It is in cyclic fashion that the Dubai property market moves.

It is not an unknown fact that Dubai is a luxury holiday spot and a bustling business hub on the global arena. This has spurred on demand for property in the emirate. Since the supply lags behind demand, any property that arrives on market shelves sells like hot cakes. And for a hot price too!

The other major factor besides supply-demand dynamic is delay in the delivery of property. In more instances than one, property units in Dubai have been under-construction for longer than estimated. This creates a further pull in the already stretched state of Dubai property market.

Drawing all points together, one can begin looking at the silver lining to Dubai’s property clouds (ahem). A lot of property projects in Dubai are nearing completion. In other words, there will be a sudden increase in supply in the months to come, which in turn will bring property prices down. But again when all this again increases demand, the eventual state of affairs will be largely guided by how Dubai property market will even that out with even more supply!

Time will tell… but it is certain that Dubai will remain a hot spot for property buyers from all over the world. With new rules and regulations providing for safer deals and a strong value of a number of foreign currencies, investors will continue to look out for opportunities in Dubai.

Dubai Property Market - Buy or Rent?

Property market in Dubai accounts for a major economic force in the emirate. All of us know about the state of the art property projects Dubai comes up with every now and then. Property market in Dubai has been witnessing a growth spurt over the last few years. At least for once, expatriates moving to this wonder city ponder over whether to buy or rent property in Dubai.

Expatriates constitute of a major portion of Dubai’s population. Seeing that the property market in Dubai is quite high in demand, they are often caught in the dilemma of paying mortgage for a personal property, or going for rent which is usually lower than the former.

Looking back at Dubai property market

2002: For the first time in the history of Dubai property market, it became possible for foreign nationals to own freehold property in Dubai. At that time, property prices were quite lower as compared to the present scenario in Dubai. Consequently, with lower mortgage rates to pay, those who bought property at that time took a wise step indeed.

2002 onwards: Due to cheaper property prices, more and more people went in to buy property in Dubai. As a result, there was a great demand (exceeding even supply!) which in turn made the prices shoot up. At present, rents are usually lower than monthly instalments.

Buy or rent property in Dubai – some pointers

• Stay of 3 years or even lesser period: Don’t buy property in Dubai if you plan to stay in the emirate for three years or less. Renting property would be a better option for you. A number of projects will soon get completed in Dubai making rents sink a bit.

• Stay of more than 3 years: If you’ll stay in Dubai for more than three years, you could definitely consider buying property in Dubai. Dubai property experts believe the market trends will reverse in a few years. So buying property in Dubai now may turn out to be a profitable step in several years. Choose a longer period for paying back your mortgage so that it’s not a crunch on your pocket. You could even rent this property later.

Points that will help one decide whether to buy or rent property in Dubai

• How long do you plan to stay in Dubai?

• What kind of property do you wish to have?

• When do you want your invested money back?

These points are paramount in giving you a sure shot answer to your worries. Because of the dynamic nature of property sector in Dubai, one needs to sort these wrinkles out.

Dubai property landscape rises vertically with the property boom

Property developers in Dubai are aiming to reach newer heights of Dubai skyline. Property units are selling like hot cakes in Dubai even before construction gets completed. Residential property prices in Dubai have faced a rise of 20 to 100 percent in comparison to last year’s figures. In fact, this has been the trend in Dubai since the turn of the century.

Anyone with some money to spare in Dubai is investing in its ever-widening property market. Buying and selling of property in Dubai has become a trend. Even those not directly involved with property or in need of it are purchasing residential property to gain profits by selling it later on.

Dubai property landscape is rising vertically everyday. With every passing day, property developers in the emirate are coming up with still more ambitious projects. Dubai has acquired a Manhattan look, thanks to the towering buildings, rather towering ambitions of property developers in the city.

The prices of apartments in Dubai have gone up by 125 percent since last year in areas surrounding Burj Dubai. At the beginning of this year, new laws stating the ownership of residential property by foreigners have acted as a catalyst to the property price boom.

High-rise luxury apartment towers mushroom all over Dubai and dozens more are under construction. Dubai property market is dominated by world-renowned names such as Nakheel, Emaar, Dubai Properties and Damac Holding. The ruler of Dubai aspires to transform the city into a throbbing financial trading centre.

Last week, Dubai saw the completion of 155th floor of the much speculated Burj Dubai and this week saw 156th floor in shape. Already the world’s tallest, the Burj stands tall at 585.7m (1922ft). And still growing! Ultimately the tower will have 164 floors and scope to have more if it faces competition from anywhere in the world.

Dubai Property Price Trend – Property Analysts with Divided Beliefs

The impending slowdown of Dubai property sector is something analysts are having a divided opinion about. One group of property experts believe the boom in Dubai property sector will slow down around 2014, while others opine it will cool off within 2 years from now.

According to a Dubai property sector report, the prices of residential units in Dubai will reach their zenith in the year 2008. After that, the supply of homes will exceed demand and hence, property prices in Dubai will possibly touch their nadir by 2011. It is estimated that there will be a dip of about 15 to 20 percent in Dubai property rates.

According to local property analysts, however, Dubai property rates will keep on soaring for another 7 years or so because of a number of factors:

• Property construction delays in Dubai

• Limited supply of new housing units

• Increased demand for Dubai property among foreign investors

• Falling price of Dubai currency – AED (popularly known as Dirham)

According to another assessment of Dubai property, around 181,000 units will be in demand in the coming three years or so. At the same time, only 175,000 new units will be made available in the Dubai property sector by 2010. Thus the demand will exceed supply and consequently the property prices will continue to rise for some more years.