Why Dubai?


Dubai – The City of Tomorrow Dubai promises to be the destination for intelligent property investors with some of the most breathtaking buildings and prestigious projects, Dubai is rich with every conceivable contemporary comfort.

Bearing every facet of a truly “designer” city, Dubai boasts of a lifestyle that is unique, yet desirable. A bustling metropolis with towering skyscrapers and quiet boutique offices, Dubai is clearly the business hub and commercial capital of the region, with world class shopping malls, restaurants and entertainment facilities, Dubai is the city of the future.

With the ever increasing interest in the UAE and Dubai in particular, it is little wonder that this part of the world is the hot topic among many investors. Dubai and the UAE, like no other country in the world, instill a sense of belonging into all its visitors, leaving them eager to return.

With rapidly increasing tourism statistics expected to reach 15 million by 2010 and the opening of Dubailand in 2010, a 200 million square feet entertainment centre, the pace of development is utterly mind blowing. Where else in the world can you buy a piece of real estate on a country in a country of your choice as you can with “The World”? or own a pad in the world’s tallest tower, the Burj Dubai?

If these reasons were not good enough then how about the world’s largest man-made marina – Duabi Marina? The list is exhaustive, and I haven’t even mentioned the Palm Islands or the other man-made islands in the middle of the desert.

So why are people moving, buying, investing and holidaying in Dubai? “They do because they can!”

This is a motto you hear a lot in Dubai and when you see the scale of their ideas and vision you cannot help but be amazed and wish to be apart of it. With property starting at 68,000 Euros overlooking an Ernie Els designed golf course in a $2 billion backed project within Dubai Sports City, or 260 sqm 4 bed apartment overlooking Dubai Marina for 360,000 Euros, it is easy to see why prices and opportunities may only increase.

But it is not merely the individual buying in Dubai for a holiday home or investment; numerous major Blue Chip companies now have their head office based in Dubai, including: Hewlett Packard, Canon, Dell, Sony, IBM, ICC (International Cricket Council) and even Donald Trump has spotted the possibilities within committing to build a dozen towers.

Bernie Eccleston is building and F1 track with the aim to host a grand prix by 2008 and Manchester United Football Club is building a brand new training academy.

But the big names are not the only important players moving to Dubai, as the city also looks to position itself of the health capital of the world containing the most advanced hospitals know to man.

100 new schools are being built, looking to recruit some of the finest teachers from around the globe, a move which reflects the expected mass – relocation that will take place over the coming weeks, months and years. With this, the demand for long-term rental is strong, so much so that the Dubai government cap rental increases at 15% this year to prevent it spiraling out of control.

Dubai is a haven for tourists and investors alike. The tax benefits are an unstoppable pool which explains why more and more companies are flocking to this Arabian paradise. Dubai now has the world’s fastest growing economy which shows no signs of abating.

Real Estate Strength
The recent growth of the real estate sector in Dubai is well documented, although it paints only a small part of the overall picture. The UAE has, so far, received 250 billion Euros worth of investment in it’s residential, commercial and tourism sectors. Of this, 12% has been ploughed into the real estate sector, with double this amount expected to pour in within the next 5 years. Such an injection of capital is a reflection on the government’s pledge to construct one of the world’s most sophisticated infrastructures.

Government funded property projects such as Emaar Properties, Emirates Hills, The Green, Jumeirah Beach Residence and further Nakheel Projects have fuelled the real estate sector and attracted numerous foreign investors to the region. Yield returns of over 15% per annum are not uncommon and freehold ownership is now allowed in many of the emirates.

The UAE Constitution is currently under review as to whether there is any reason to restrict foreign nationals from owning land and property for life. The issue has so far been cascaded down to the laws of each individual emirate, with some states choosing to allow freehold ownership (Dubai) and some, as yet, not (Abu Dhabi).