Dubai Property – The crown jewel of the United Arab Emirates
Dubai is located on the southern shore of the Arabian Gulf and is the second largest of the seven Emirates. As the crown jewel of the United Arab Emirates, it offers visitors an oasis from the surrounding desert remaining mostly sunny and warm throughout the year.
Home to the PGA Desert Classic, Dubai boasts seven championship-standard golf courses, is host to the world’s richest horse race, the annual ATP Dubai Tennis Championship and Class 1 World Offshore Powerboat Championships.
Over the past six years of unprecedented growth, all industry sectors have at least doubled in size. The strongest growth has been shown by those related to property development. Construction has grown by an average of 32.7% since 2001 and in 2006 accounted for 12.7% of total GDP up from 7.2% in 2001. Similarly, Real Estate businesses have recorded an average growth of 25% per annum.
Even higher growth rates are forecast for the next eight years. The Ruler of Dubai and UAE Vice-President Sheikh Mohammed Bin Rashid Al Maktoum released the latest economic plan in February 2007 targeting overall economic growth of 11% per annum up to 2015. Previous economic plans have all been surpassed early pointing to another period of prolonged economic growth in Dubai.
The medium term target for the emirate is to increase tourist numbers to 15m by 2015 driven by the climate, accessibility, major sporting events and conferences. To assist in this goal the world’s largest theme park, Dubailand, is being created in the desert along with Al Bawadi. This development will become the leader in world hospitality including the world’s largest hotel, Asia Asia.
Officially launched in September 2004, the DIFC was the first financially focused free zone in the UAE. It is fully regulated by the Dubai Financial Securities Authority (DFSA) and in compliance with the International Financial Regulatory System (IFRS). The DIFC focuses on several sectors of financial activity: Banking Services (Investment Banking, Corporate Banking & Private Banking); Capital Markets (Equity, Debt Instruments, Derivatives and Commodity Trading); Asset Management and Fund Registration; Insurance and Re-insurance; Islamic Finance & Professional Service Providers.
The key indicator for assessing the growth potential in the market is the recent arrival of many of the world’s largest banks and financial institutions. Since it began operations, the DIFC has attracted some of the largest names in finance; JP Morgan, Citibank, Barclays, Morgan Stanley, Halliburton, HSBC, UBS, Standard Charter, Goldman Sachs, Lloyds, Merrill Lynch, Credit Suisse, Deutsche Bank, Price Waterhouse Coopers, KPMG, Deloitte and host of other, international financial institutions have established themselves a firm base in the DIFC to begin regional operations.
$300 billion of major infrastructure projects are underway or allocated to ensure Dubai meets its aggressive economic targets. Along with the Dubai-based airline Emirates doubling its fleet, the airport capacity is being tripled by the construction of a new airport in Jebel Ali which will become the world’s largest and is built to handle 120m passengers a year. Nearby, the Jebel Ali container terminal is undergoing a massive expansion plan which will increase its capacity by 50% by 2010.
The population of Dubai has grown and continues to grow at a tremendous rate. Official figures show the population growth at 65% between 2000-2006. This rate of growth shows no signs of abating with an ever increasing number of expatriates drawn to Dubai’s climate, tax-free environment and high standard of living.
Official estimates of the average annual population growth are almost 12% per annum which would give Dubai a population of over 3m residents by 2010. This surge in population has led to a huge demand for accommodation which has in turn fuelled the construction boom.
It is estimated that an additional 275,000 housing units will be needed by 2010 however only 177,000 are planned to be delivered in this period. The shortfall of almost 100,000 units gives comfort that the market will continue to rise in line with supply and demand dynamics.
Hampstead & Mayfair are delighted to be working with Portfolio Property Investments as the recommended agent in Durban for assisting clients looking to invest in the Dubai property market. As a British property developer headquartered in Dubai, we also have supporting offices in the UK and Hong Kong to serve our global client base.
With a complete range of services under one roof, Hampstead & Mayfair offer a convenient, turn-key solution for customers. We focus on developing and selling unique projects finished to exacting standards, with an emphasis on timely delivery and customer satisfaction.