About Dubai Real Estate

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.