Hi, Sunil here to talk about real estate in Dubai, one of my personal favorite discussion topics!
A few years back Dubais Sheikdom decided to mortgage its future by investing all its oil and trade profits in tourism and real estate.
I am not sure how calculated the gamble was back then but who cares?
Real estate in Dubai is booming (as of 2008 at least) and there are no signs of anything affecting it (Update: 2012 - Real estate has normalized due to the global economic slowdown).
Not the US economy, not the credit crunch crisis and certainly not the fluctuation (up or down) in the price of oil.
Buying property in Dubai has always been one of the most popular investment options because of Dubais visitor-friendly policies and tax treatment (or lack thereof). There are countless Dubai property investment opportunities available.
Because of the increasing purchase of Dubai properties by expatriates in the past few years, other Emirates have noticed the profitability from real estate development and they are also beginning to contribute to the growth of the gulf region.
I have read somewhere that real estate in Dubai is so big that it is bigger than the entire Dubai economy. Of course the references werent stated so I cant imagine this is true. However I just might not be surprised if it is true. There is a new tower going up every day!
Real estate in Dubai is an economy of its own and no one can explain how the growth has been so rapidly increasing and how it is able to sustain itself. If you ask me I think its a big government conspiracy, but I wont talk about that in this discussion. Stay tuned for a much controversial discussion on that topic.
If you ask analysts, you will get a typical response of a bubble soon to burst. But when? These same analysts have been saying the same thing since year 2000. There is a piece of property for sale in Dubai any direction you look. It is true that historically this growth isnt sustainable. But why has it sustained itself so far? Something to think about
One argument I have heard is that the Gulf Coast region is the 17th largest economy in the world and has a GDP of $520 billion. Coupled with the high income earners, a total economy of half trillion every year creates $500 billion in revenues that are invested right back in real estate infrastructure.
The region is growing at 25% a year which means it should reach 900 Billion by 2010. The latest numbers on UAE as a whole showed current projects at around $225 billion with Dubai leading the way with $125 billion of that share. A lot of this is Dubai investment property available for sale.
Today we see just Dubai take massive strides. But tomorrow, expect to see the other Emirates follow the same model by following Dubai and rise to profitability in the global real estate industry.
- A comprehensive guide to investing in Dubai real estate.