|
Dubai is a city in the United Arab Emirates that is built
around the principles of free trade, foreign investment,
and sound business practices. It was Sheikh Maktoumi bin
Hasher Al Maktoum who declared Dubai as a free port in
1901, abolishing all tariffs. He began a well-planned
program to persuade the traders in Iran to relocate to
Dubai Creek.
Dubai Creek was a natural harbor that played an essential
part in Dubai's early development.
Property in Dubai started picking up after the real economic
spurt in 1950. During that decade Sheikh Rashid bin Saeed
Al Maktoum expanded the Dubai Creeek to increase its capacity.
The Sheikh also founded the Dubai airport and the first
hotel in Dubai in 1959.
Thanks to the change of rules recently, property in
Dubai has seen a remarkable growth. Previously, only native
citizens were allowed to own property in Dubai but now
anyone can do so.
The reason for this change is that the government wished
to diversify from an oil-dependent economy to a service
and tourism oriented economy. This has made property in
Dubai more valuable and brought about a property boom.
The very first freehold property in Dubai occupied by
non-UAE citizens is collectively known as Emirates Hills
and includes The Meadows, The Springs, and the lakes.
These are all upscale neighborhoods that were developed
by Emaar Properties.
People from many countries have settled down in Dubai
over the past few years, contributing to Dubai's growing
economy and prosperity.
Starting in the year 2000, the Dubai municipality started
many construction projects throughout the city. The plans
are so elaborate and being followed with determination
that it is estimated that 15-25% of the world's cranes
(used in construction) could currently be found in the
United Arab Emirates busy giving new shape to property
in Dubai. Construction in Dubai happens much faster than
the rate of construction in most developed nations due
to availability of cheap labor. This means that investors
in real estate in Dubai are able to reap their profits
much sooner.
Since the market is fresh with several legislative changes
still in the works that can only make the rules more lenient
for foreign property investors the demand is greater than
the supply. The profit margins are also much higher and
there is no indication of this trend reversing anytime
in the near future.
Rental property in Dubai has become much more expensive
because of this and also as a result of the increasing
number of professionals that annually move to Dubai because
of its no-tax policies and better lifestyle. The rise
has been curbed at about 15% per annum in the year 2006
as per orders from Sheikh Mohammad.
|
