Real estate in Dubai
Every city in the world has real estate business and what is so special about the real estate industry in Dubai? What makes the people through out the world to invest in Dubai?. What is so special about the place Dubai?
For more than 3 years I am living here in Dubai. This place gives a lot of importance for business. One another thing which fascinates lot of people is because it is a tax free nation. Apart from this the real estate developers in Dubai are building some crazy stuff here. Some of outstanding developments being
- Burj Dubai - Tallest building in the world
- Palm Island
- Dubai land
- Business bay and lot more
The next good thing to tell about Dubai is the way they promote and market each buildings. The loan and payment facilities they offer. If you see the number of residential building is very much low. So there is a need for lot buildings to accommodate the current population. So there is a good rental guarantee for the one who buys an apartment in Dubai. Most of the investors buy apartments in Dubai for this reason.
Currently lot of people who works in Dubai stays in Sharjah since there is lot of residential properties and its much cheaper compared to Dubai. It might change in the near future all because of the traffic they have to go through everyday. Which is a big stress and please don’t ask about it and I am going through everyday.
All I am trying to say is if I had the money to invest I am would surely buy lot of apartments in Dubai. The sad thing is I don’t have it 
Tags: Real Estate
12 Comments »
RSS feed for comments on this post. | TrackBack URI
RSS
Man - I believe even if you had the money, you shouldn’t, rather get a house in your home country or in a different place.
In my eyes, the market is very over-rated and somehow inflated, e.g. how come that in the 6 yrs I have been hear rent has doubled. Investors need that money to make up for their inflated investment of a house or apartment. Finance companies charge 8-14% interest fees (most of it hidden) whereas in the normal world 4-6% are common.
Basica calculation is that if your interest fee (annual) is higher than your rent gain, then it’s a loss like in most places in Dubai.
Then the legal implications where the free-hold property law is not yet 100% regulated, and any time any one can come up with a 15% or 7% rent cap (which is good for tenants) that suddently changes the picture of an investor’s image 2 years ago.
I truly think real estate investments should be long term and not short term speculative decisions - then they are not supporting the local economy but just rip them off throughout a bubble that is bound to burst.
If I was you I would invest my money into education or a nice place back home. One of my friends’ parents is currently thinking to retire and their kids are in Dubai - would you have your parents retire in a place where in the summer they can’t even go for a walk on the streets?
I love Dubai and it has been great to us for business, as a hub to travel and a great place to spend live but I think it will take more than a generation to make this place comparable to places like Bombay, London or Hong Kong.
M
PS: I went to the Palm the other day - scary. We used to dive around here, now all full of construction and the underwater world is completely destroyed.
Comment by Martin Diessner — June 11, 2007 @ 8:27 am
Imthiaz, better listen to Martin Diessner.
He has demonstrated amply that you are in a bubble.
Imthiaz! Bubbles burst.
Don’t know if larger they get the quicker they burst.
The best place for Imthiaz is the place where Imthiaz can be 100% Imthiaz.
Looks like neither of us have a problem in our hands right now.
Im looking forward to the day I will take my grand son for a promenade
along the banks of the great Koovam. Insha Allah soon.
If you live in a place where you cannot take an evening walk, why live there? Or why live at all?
But Imthiaz!
Living in a bubble is totally different from being a bubble !!!!!
Comment by Majeed — June 15, 2007 @ 5:56 am
I would second both the fellows, the Dubai’s rental business and property boom is just another bubble.
We have seen what happened to the Dot-Com bubble and then to the Japanese Economy!
But on other hand, having bubbles is also good (for those who didn’t invested!). Like in case of Dot-Com bubble we are still surviving on the extra-capacity links which were laid by telecos and in case of Japanese bubble we have people having fun importing raw-materials in the country.
So as the third person commenting, I would suggest against such an investment.
Comment by ujmi — June 19, 2007 @ 3:30 pm
Would be nice to live in a place with no taxes, but I’m sure it has its disadvantages also
Comment by Mary Beth Hurtado & Elliott Lewis — June 27, 2007 @ 1:31 am
Well, looks to me like everyone here’s got the right idea. No need for me to parrot off what they’ve already said, I suppose.
Comment by George — June 27, 2007 @ 5:36 am
Dubai is a city with one of the highest population growth in the world. It has no taxis, very little crime, sun, beach, best service you will every get, and a night life that beats most of europe, and very few that come to visit this city every want to leave it. when you put this along side with zero taxes and a vision by its rulers to attract 15 million visitors a year and an aimed pupulation of 11million from the current 2.5 million. i would say Dubai is a great place to invest in property and people who have invested in the last few years saw great returns. i think in any new market and a market with high returns you will get investers start to expect a down slide, but i think that is still far away for Dubai. i am sure in 5 years dubai will be one of the most expensive cities in the world for property. so expect good returns to continue for next few years.
Comment by G — July 10, 2007 @ 5:50 am
I agree completely. Here in Ireland it happened. For 10 years we had the boom of the “celtic tirger” where people investing in property made alot of money. But things could not have kept going at the pace it was going at and now no one wants to buy in fear the the market will drop and they will lose thousands. How can Dubai do it. It happens everywhere that a market will drop. I would not invest in there unless i actually wanted to live there for the rest of my life
Comment by joseph — July 20, 2007 @ 2:27 pm
The bubble theory normally applies in cases where the capital value of your investments stop appreciating, or in some unfortunae cases, decline. The Dubai property market has thousands of options available, however due to the strong demand, the supply still sits in the signigicant shortage range. Of course we all know that tens of thousands of residential and commercial units will be available within years, but even this amount will not be enough to accomodate the approx 5000 new families relocating to the city every month. The population is expected to double within five years. People need places to stay, and some banks do offer mortgage rates lower than the average rental return, that of course is their most compelling point. Rental rates, along with interest rates are bound to stabilize, however the capital appreciation is set to increase due to the imminent demand of end users, who would rather buy and live in their own properties, than to rent. The bubble burst can prove to be a threat once foreigners lose interest in moving to Dubai. Thus far, we can all agree that is not the case. If anyone is interested in owning a property for only 20% of its market price, and selling it within a year AND keeping 100% of the profit, please do not hesitate to contact me @ zqdubai@hotmail.com. Believe in Dubai… it has given you no reason to do otherwise.
Comment by Zia Qureshi — September 18, 2007 @ 5:52 am
ive been following the development of Dubai since 2002 im only 17. but from what i can see is that i think we can expect great things from this beautiful city. they really seem to know their architecture i dont know if i spelled that right. oh and i love that for such a nice place there iis a relatively low cost of living.
Comment by mike — November 28, 2007 @ 6:17 pm
I thinking that as long as there is construction of the major projects one can be certain there will be curiosity and interest amongst other countries. The interest consists of tourism and investments and considering the current projects (Burj, Palms, beaches, etc…) I think it should be enough to keep tourists coming back and businesses doing well. Dubai is very simply constructed around tourism. The amount of land available is quite extensive, the sky is the limit (as demonstrated) and if and when the interest dies down it will be due to the fact that the amount of tourists visiting in such a short period of time will be exhausted. Once that happens there will be another project to spark interest…and another and another, even when the oil is depleted, the prices will stabilize (hotel rooms) similar to Vegas… until then everything will be booming.
Comment by person — February 29, 2008 @ 6:57 am
We are a highly experienced UK based global property-finding company, and can confirm that there’s still a high level of interest in the UAE, with Ras Al Khaimah being the latest area to attract attention.
Comment by Own A Home Abroad — April 9, 2008 @ 1:53 pm
Wow. Sounds like trying to buy an apartment in New York City or San Francisco - on steroids! Important to note that all real estate is cyclical. It is booming now but will be followed by a correction. The trick is to buy close to the bottom of that cycle not at the top.
Comment by Susan Lassiter-Lyons — April 13, 2008 @ 6:52 pm