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Real estate in Dubai

Every city in the world has real estate business and what is so special about the real estate industry in Dubai? What makes the people through out the world to invest in Dubai?. What is so special about the place Dubai?

Real estate in Dubai

For more than 3 years I am living here in Dubai. This place gives a lot of importance for business. One another thing which fascinates lot of people is because it is a tax free nation. Apart from this the real estate developers in Dubai are building some crazy stuff here. Some of outstanding developments being

  • Burj Dubai – Tallest building in the world
  • Palm Island
  • Dubai land
  • Business bay and lot more

The next good thing to tell about Dubai is the way they promote and market each buildings. The loan and payment facilities they offer. If you see the number of residential building is very much low. So there is a need for lot buildings to accommodate the current population. So there is a good rental guarantee for the one who buys an apartment in Dubai. Most of the investors buy apartments in Dubai for this reason.

Currently lot of people who works in Dubai stays in Sharjah since there is lot of residential properties and its much cheaper compared to Dubai. It might change in the near future all because of the traffic they have to go through everyday. Which is a big stress and please don’t ask about it and I am going through everyday.

All I am trying to say is if I had the money to invest I am would surely buy lot of apartments in Dubai. The sad thing is I don’t have it 😀

25 Comments

  1. Man – I believe even if you had the money, you shouldn’t, rather get a house in your home country or in a different place.

    In my eyes, the market is very over-rated and somehow inflated, e.g. how come that in the 6 yrs I have been hear rent has doubled. Investors need that money to make up for their inflated investment of a house or apartment. Finance companies charge 8-14% interest fees (most of it hidden) whereas in the normal world 4-6% are common.

    Basica calculation is that if your interest fee (annual) is higher than your rent gain, then it’s a loss like in most places in Dubai.

    Then the legal implications where the free-hold property law is not yet 100% regulated, and any time any one can come up with a 15% or 7% rent cap (which is good for tenants) that suddently changes the picture of an investor’s image 2 years ago.

    I truly think real estate investments should be long term and not short term speculative decisions – then they are not supporting the local economy but just rip them off throughout a bubble that is bound to burst.

    If I was you I would invest my money into education or a nice place back home. One of my friends’ parents is currently thinking to retire and their kids are in Dubai – would you have your parents retire in a place where in the summer they can’t even go for a walk on the streets?

    I love Dubai and it has been great to us for business, as a hub to travel and a great place to spend live but I think it will take more than a generation to make this place comparable to places like Bombay, London or Hong Kong.

    M

    PS: I went to the Palm the other day – scary. We used to dive around here, now all full of construction and the underwater world is completely destroyed.

  2. Imthiaz, better listen to Martin Diessner.

    He has demonstrated amply that you are in a bubble.
    Imthiaz! Bubbles burst.
    Don’t know if larger they get the quicker they burst.

    The best place for Imthiaz is the place where Imthiaz can be 100% Imthiaz.

    Looks like neither of us have a problem in our hands right now.

    Im looking forward to the day I will take my grand son for a promenade
    along the banks of the great Koovam. Insha Allah soon.

    If you live in a place where you cannot take an evening walk, why live there? Or why live at all?

    But Imthiaz!
    Living in a bubble is totally different from being a bubble !!!!!

  3. I would second both the fellows, the Dubai’s rental business and property boom is just another bubble.

    We have seen what happened to the Dot-Com bubble and then to the Japanese Economy!

    But on other hand, having bubbles is also good (for those who didn’t invested!). Like in case of Dot-Com bubble we are still surviving on the extra-capacity links which were laid by telecos and in case of Japanese bubble we have people having fun importing raw-materials in the country.

    So as the third person commenting, I would suggest against such an investment.

  4. Well, looks to me like everyone here’s got the right idea. No need for me to parrot off what they’ve already said, I suppose.

  5. Dubai is a city with one of the highest population growth in the world. It has no taxis, very little crime, sun, beach, best service you will every get, and a night life that beats most of europe, and very few that come to visit this city every want to leave it. when you put this along side with zero taxes and a vision by its rulers to attract 15 million visitors a year and an aimed pupulation of 11million from the current 2.5 million. i would say Dubai is a great place to invest in property and people who have invested in the last few years saw great returns. i think in any new market and a market with high returns you will get investers start to expect a down slide, but i think that is still far away for Dubai. i am sure in 5 years dubai will be one of the most expensive cities in the world for property. so expect good returns to continue for next few years.

  6. I agree completely. Here in Ireland it happened. For 10 years we had the boom of the “celtic tirger” where people investing in property made alot of money. But things could not have kept going at the pace it was going at and now no one wants to buy in fear the the market will drop and they will lose thousands. How can Dubai do it. It happens everywhere that a market will drop. I would not invest in there unless i actually wanted to live there for the rest of my life

  7. The bubble theory normally applies in cases where the capital value of your investments stop appreciating, or in some unfortunae cases, decline. The Dubai property market has thousands of options available, however due to the strong demand, the supply still sits in the signigicant shortage range. Of course we all know that tens of thousands of residential and commercial units will be available within years, but even this amount will not be enough to accomodate the approx 5000 new families relocating to the city every month. The population is expected to double within five years. People need places to stay, and some banks do offer mortgage rates lower than the average rental return, that of course is their most compelling point. Rental rates, along with interest rates are bound to stabilize, however the capital appreciation is set to increase due to the imminent demand of end users, who would rather buy and live in their own properties, than to rent. The bubble burst can prove to be a threat once foreigners lose interest in moving to Dubai. Thus far, we can all agree that is not the case. If anyone is interested in owning a property for only 20% of its market price, and selling it within a year AND keeping 100% of the profit, please do not hesitate to contact me @ zqdubai@hotmail.com. Believe in Dubai… it has given you no reason to do otherwise.

  8. ive been following the development of Dubai since 2002 im only 17. but from what i can see is that i think we can expect great things from this beautiful city. they really seem to know their architecture i dont know if i spelled that right. oh and i love that for such a nice place there iis a relatively low cost of living.

  9. I thinking that as long as there is construction of the major projects one can be certain there will be curiosity and interest amongst other countries. The interest consists of tourism and investments and considering the current projects (Burj, Palms, beaches, etc…) I think it should be enough to keep tourists coming back and businesses doing well. Dubai is very simply constructed around tourism. The amount of land available is quite extensive, the sky is the limit (as demonstrated) and if and when the interest dies down it will be due to the fact that the amount of tourists visiting in such a short period of time will be exhausted. Once that happens there will be another project to spark interest…and another and another, even when the oil is depleted, the prices will stabilize (hotel rooms) similar to Vegas… until then everything will be booming.

  10. We are a highly experienced UK based global property-finding company, and can confirm that there’s still a high level of interest in the UAE, with Ras Al Khaimah being the latest area to attract attention.

  11. Wow. Sounds like trying to buy an apartment in New York City or San Francisco – on steroids! Important to note that all real estate is cyclical. It is booming now but will be followed by a correction. The trick is to buy close to the bottom of that cycle not at the top.

  12. in addition to above reasons here is why you should live and invest in dubai:

    1. traffic jams that will keep you on the road 2 hours to work and another 2 hours from work, irrespective of how close you think you will live.

    2. a very superficial and shallow lifestyle where you are forced to show off your wealth everywhere to get some basic service and respect. forget intelligence and education, no one gives a damn

    3. weather that is advertised as warm and sunny. in reality hovering around 50 degreess and 90% humidity for a good part of the year, which will cook you to death if you car stops in the desert.

    4. advertised as liberal : if you have a bottle of alcohol at home with no license to buy it, or proof you got it from airport while arriving, you can go to jail. laws are so harsh you can go to jail for 4 years for very silly things like writing about something that did not make the ruling family happy.

    5. unknown rules and law of land, things can go very funny with rich druggies going scot free, and poor ones being inside all their life.

    6. ***** TEXT REMOVED BECAUSE IT WAS TOO OFFENSIVE ******

    7. one of the most racist places in the worls, with all races living in their own ghettos and never mixing with anyone else.

    Done believe any of this, dont reply to me. go live there with open eyes for one month.

    well, why dont all of you go forth , invest, and procreate there!

  13. Im not for or against living or buying in UAE or for that matter anywhere in the world. Its a personal choice. Some like it HOT some like it COLD and some like it in the pot nine days old!… or for some…just the POT!

    For any growing city one of the major obstacles is the traffic. Which big city doesn’t have traffic jams. Sao Paulo, Bucharest, Moscow Sadovoye Koltzo, New York, Bangkok and a lot more have huge traffic jams. Dubai is growing at a phenomenal rate and the number of cars coming out need no be mentioned. The government is doing a good job of trying to solve the problem. Its easy to criticize.

    As for the lifestyle, I do agree that its rather shallow. But is it not an individual choice to decide what lifestyle you want? Intelligence, education…what’s that??

    This is a desert for heavens sake! What do you expect? SNOW?

    well if you want to live in any country, you have to live by their rules or live by the rules the keep making/changing every day! Hell if I go to Germany I don’t think I would be able to stand most of the people’s lifestyle! But if I did want to go there I would go knowing what to expect and would have to stick by their rules. How many people know the rules of their OWN country?? Duh!

    Racist? Is this country more racist than the UK, US or South Africa???.. and many more! …France, blah blah blah… come on!

    Have you experienced a mugging, kidnapping, robbery, bribe etc in the UAE. In other countries you can experience that EVERYDAY! Sure it does happen sometimes… that’s because there are humans living here too.

    One of the reasons people come here is because they can get more for what they are worth than if they were back in their homeland. They can invest, do business etc. Since most of them live here for decades ie all their lives, it is a good decision to buy a home where you spend your life. I know a lot of people who have homes all over the world but don’t live there!

    For investors this is a good time to invest because your ROI will be great in the coming years since this is a young economy. For people buying to live… its wise to do so with the rent increasing abnormally!

    To invest/live here or not to, is your choice!

  14. Property investment is one of the most stable markets with growing demand to accommodate the increasing global population. Dubai being a booming market, it is crucial to invest there in order to make amazing returns. Whether for your personal use, to rent or resell, the opportunities and potential are endless. Investing is for some, a scary thought. They prefer the safety of leaving their cash in a bank or building society. In the short term, you will perhaps not see your money going up or down, it is going to remain stable but in reality, failing to invest can cost you money in the long term. Not just a few pence, but thousands and thousands of pounds!

    Some portion of comment due to excessive advertisement by the commenter.

  15. Hi Imthiaz. You’re right, Dubai is certainly among the most attractive destinations for investment – for people who already have a lot of money! Real estate there is among the costliest in the world!
    I would rather prefer a place like Suburb Germany, where the prices are within the reach of a common man and the growth is a steady 10-15%.
    Nice pic from Google earth! Cheers 🙂
    And nice rejoinder Martin.

  16. Yes, great Google Earth pic. Dubai is an interesting one, as pretty much all of the accusations against it here have some foundation (it’s a shallow lifestyle, segregated racially etc) I have to agree with G that an investment here would probably pay off in the long term. With such huge investments as the Palm and the World there sems to be either a long term growth plan or a ridiculous bubble, and I guess we’ll find out which fairly soon. When I lived there the Trade Centre was the big building!

  17. hello everyone.
    Do you think that now is a good time to buy an apartment in Dubai? do you think that we are at the bottom of the U in terms of prices?
    Thanks

  18. Real estate in Dubai is special because it is not only for the residents of Dubai, the properties in Dubai are also made for foreigners.
    Multi-national companies have got their offices in Dubai’s commercial real estate. Dubai’s real estate has attracted super-rich people of the world just because of its beauty and quality.

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  20. Woww, Dubi has very beautiful arcitecture. because of the “shallowness” i would not be able to live there. i would prefer to go there on holiday or vacation. only for rest and relaxation. i really perfer a place with a very challenging atmosphere, somewhere i could learn and not be constantly indulged. As for Jay, have you ever travelled anywhere?? the things you mentioned are found in every single country. if you expected to travel to Nirobi, kenya (my home town) do you honestly think it would have the same laws, temperatures and general lifestyle?? who are you to gudge another society?? go procreate with yourself.

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