Dubai Property / Articles / Dubai’s Remarkable Growth and Future Prospects for Investors
Dubai’s Remarkable Growth and Future Prospects for Investors
By Daniel Marshal
The recent history of Dubai has seen a delightful change from regional trading port to the metropolis of the future which we see today. Dubai’s remarkable growth is backed by its innovative approach, commitment to quality and ambition to excel. In few years the emirate is considered as one of the highly advanced and progressive cities of the world with a vibrant real estate market.
The major shift in Dubai real estate sector occurred in the year 2002, when it was made legal for foreign nationals to own property in Dubai on a freehold basis, something which was not allowed before. The opening of real estate to foreigners was seen a great encouragement to the international property investment community, who took up the offer in considerable numbers. In 2006, the changes of the land law in the Emirate allowed foreign nationals the right to register their freehold property which proved to be a real catalyst to large amounts of investment into the Dubai property market.
The change in real estate legislation has drawn considerable overseas corporate investment in the region by means of the creation of very attractive set of commercial incentives. The creation of free trade zone environments proved highly successful, and resulted in large numbers of companies moving to Dubai to get the advantage of favorable taxation and trading environments in the emirate. Today, there are over 20 world-class free zones in Dubai including the Jebel Ali free zone and Dubai Media and Internet City. These free trade zones offer, companies moving to Dubai, a range of commercial benefits including foreign ownership, corporate tax exemption and import and export tax exemptions.
The result of the growing popularity of Dubai, both in tourism and as a commercial trading environment, has resulted in the large increase of the population. Today, over 1.5 million people live and work in the emirate, which has only served to increase the demand for all types of property in Dubai, both on a short term and long term basis.
Though Dubai has also suffered from the current financial crisis but still the emirate has the potential to cope up the crisis. The decrease in the prices of property presents a great opportunity to investor to buy the property now and resale it in future on profitable rates. The cancellation of many projects in Dubai will reduce the upcoming supply of property and ensure significant growth in the value of Dubai properties in the times to come, and that the rate of return on rental properties makes Dubai one of the best cities in the world for long-term property investment.
About the Author: Daniel Marshel is senior real estate consultant associated with Better Homes, a leading real estate firm in Dubai, UAE. He has more than 25 years of first hand experience of working in Dubai real estate market. His firm Better Homes offers online Dubai and overseas property listings, property management and investment Property services. |