Before the discovery of oil
reservoirs in 1966, Dubai was used to be the small fishing village. Unlike Abu
Dhabi, the second largest Emirate of UAE doesn’t possess huge oil reservoirs.
Having considered the small size of oil reservoirs, State Government of Dubai have
decided to reduce its dependency from oil exports to diversify its economy. To
execute this plan they started investing petro dollars earned from oil export
in other sectors like real estate, infrastructure and business and trade.
Investors and developers started working on infrastructure, commercial and
residential property developments to enhance the living standard of this city.
Important
Governmental Efforts to transform Dubai
To further facilitate progress
of industrial sector, Government took few bold steps like free zone creation to
allow tax free business for local and foreign entrepreneurs. Whereas, the Free
Hold property law’s implementation is also the part of governmental efforts to
attract foreign investments in real estate sector. Secondly it also attracts
second home seekers who have been searching to settle down in the country with
good economic conditions.
Major
transformations of Dubai real estate sector
It has been observed that
in a very short span of time, Dubai real estate sector showed remarkable growth
and successfully gain top position in international real estate markets. This
has only become possible due to combined efforts of developers and investors.
In a short period of time they have constructed iconic skyscrapers in residential,
commercial and retail sectors. Moreover, luxury villas and resorts have also
been constructed to satisfy local residents and luxury lovers. To further
diversify Emirate’s economy, developers also constructed luxury shopping malls,
leisure and entertainment spots not only to drag tourists across the world
rather to entertain its residents.
Top
real estate developers
Emaar, Nakheel, Dubai
Holdings and Damac properties are the region’s most renowned companies that
have been working continuously to reshape the infrastructure and real estate
sector in Dubai.
Why
investors think of investing in Dubai real estate sector?
Possibility of earning good
profits is the major reason of investing in Dubai real estate sector. Secondly the asset prices in the Emirate are considerably
low as compared to other international property markets across the globe. Especially,
investing in short term rental sector and hospitality sector are the most
profitable real estate investments. Because Dubai is a tourist destination and
huge number of people consider visiting Dubai every year to take a short
holiday break with their families and friends. Secondly, business travelers and
job seekers are also considering Dubai as the destination to fulfill their job
and business objects. All of such visitors need some suitable accommodation on
temporary basis. They prefer staying in serviced apartments, resorts, villas
and hotels. Having considered these facts you can choose investing in any of
such projects to get good profits in the form of rent.
Endnote
Although global financial
crisis had badly hit the economy of United Arab Emirates and property prices
fell down to 60% of its actual price. But later with time at the end of 2011
Real estate sector stared showing recovery and during 2012 it continued to
recover and the end of 2012 asset market was completely recovered. During the
year 2013 the progress continued and after winning the bid to host EXPO 2020,
Dubai has become the hot spot for investment again not only for real estate
sector but for other business sectors like manufacturing, security and information
technology.
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