The property market market in the United Arab Emirates, one
of the hottest in the world, is set to continue until 2015
and beyond, according to new reports. Real estate and
construction markets in the UAE are primarily focused on
Dubai, which has been booming for several years, and the
newer market of Abu Dhabi.
Two recent studies by HSBC and Damac Capital International
of Dubai both indicate that supply will not catch up to
demand for a number of years, keeping the markets strong.
Traditionally the most popular locations with second-home
buyers and British investors are Spain and France but Dubai
is beginning to rival them. Dubai investment property is
attractive due to its tax-free status, excellent facilities
and low crime rate.
International investors buying property in Dubai need to
concentrate their search for properties in Dubai to the
many Freehold Areas in Dubai.
Properties that are suitable for foreign buyers include the
following freehold zones: Dubai Sports City , Dubai Marina
, I.M.P.Z. International Media Production Zone , Jumeirah
Village , The Palm Jumeirah, Shaikh Zayed Road,
International City, The Lagoons, Palm Deira, Jebel Ali
Airport, Emirates Road, Dubai Land ,Business Bay ,Downtown
Dubai and much more
Recently Dubai developers have had to comply with a new
piece of legislation Law No 8. This makes escrow accounts
compulsory for all Dubai off-plan developments, with money
released only on the order of the Dubai Land Department.
This move marks an end to the days when any developer could
launch a project and collect deposits without a guarantee
that the funds would be used correctly. Many pundits feel
that this could slow the Dubai market but increase
confidence with investors
Middle East online news website Gulfnews.com reports that
Dubai will continue to be a strong real estate market,
while Abu Dhabi is set to take off. Rental yields in Abu
Dhabi are expected to be in excess of 7% until at least
2013 and perhaps beyond.
According to Damac Capital's analysts Hany Seif and Pamela
Chikhani, Dubai will remain a major Gulf real estate market
for years to come. By some estimates, over the next 10
years both local and international real estate investors
will pump in almost $300 billion into Dubai's real estate
developments. According to HSBC's real estate analysts,
Walid Khalfallah and Majid Azza, Abu Dhabi is becoming a
major regional real estate market. "The Abu Dhabi story is
gaining credibility. After a slow start to the year, sales
activity has picked up in the second half of 2007. The
market remains extremely tight, with stronger-than-expected
growth in rents [22 per cent] and prices [18 per cent],"
they said in a recent report.
Abu Dhabi does not have the liberal international property
laws that neighboring Dubai has yet, but things are
improving there. The office market is particularly strong
and vacancy rates are below 1%. With increased
deregulation, Abu Dhabi will continue to gain ground on its
more prominent neighbor. Both should see strong growth in
the coming years.
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Author Nicholas Marr is CEO
http://www.HomesGOfast.com
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