The Property Investment Market in Dubai

Past, Present & Future

Dubai emerged as a leading commercial hub, with state-of-the-art infrastructure in a world class business environment. Attracting a wealth of large international corporations, it soon became a logical and extremely attractive place to invest and do business.

Dubai offers a perfect geographical location, becoming a bridge between New York, London and Hong Kong, offering the ideal time zone to effectively trade with all other major financial districts.

In the recent past, Dubai, along with the surrounding Emirates were not on the world tourist map. The local economy was based on oil reserves, creating extreme wealth in the region. With the depletion of the oil reserves, finances gained from the oil economy were placed into creating a financial business hub and the development of high quality real estate.

The success of these plans soon became evident in not only the surrounding cityscape of Dubai, yet also the continuous numbers of immigrant workers who arrived to the Emirate on a monthly basis. The location became a highly regarded holiday destination for visitors from around the world. Further infrastructure was planned to keep up with the demands from the success of the real estate market, financial district and holiday destination.

The economic downturn in recent times hit the Dubai real estate market with force. The majority of the foreign workers who had re-located to Dubai to support the growth of the real estate sector were forced to leave due to the lack of employment opportunities. Details of the debts surrounding the major development and construction companies became common news and new building works were halted.

The future for the re-growth of Dubai’s real estate market is expected to be slow, yet the drop of property prices has enabled a unique opportunity for buyers keen to obtain a bargain. Financing new property purchases may be more difficult to obtain in the immediate future, as financial institutions become reluctant to provide loans during a market downturn. Yet as the Dubai property market initially established on cash purchases, a return to these processes will not be difficult for the market.

Besides its economic advantages, the city offers a superior quality of lifestyle that is truly international, with luxury residential and office accommodation, excellent health, shopping and educational services. Sporting and leisure facilities are world class and offered in abundance, and Dubai's top class international hotels offer a vast array of dining and entertainment choices.

With the construction of entertainment facilities such as those envisaged for Dubailand, Dubai is fast becoming one of the world’s most significant leisure destinations. As tourism is expected to rocket to15 million visitors per annum by 2010, it is evident that despite the fall in the real estate market, Dubai has created an impact on the senses as a holiday and business destination for many years to come.

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