In accordance to new reports, the real estate and property market in the UAE will be continue to thrive until 2015 and beyond. Real estate and property industries are the main focused on Dubai within the UAE that been enjoy florishing for many years, and the UAE is now wanting to shift the focus to the new market, Abu Dhabi.
Real Estate Market Remain Strong
Recently, there are two studies conducted by Damac Capital International of Dubai and HSBC Bank reveal that supply is not going to catch up with demand for a couple of years, and due to this the real estate and property markets in the region will remain strong for years to come.
Previously, the most favorite locations for British investors to buy their second home are France and Spain, but as of now Dubai is starting to compete with these two countries. Dubai investment property can be even more attractive for British investors since it features with luxurious amenities, low crime rate, and tax-free status.
However, for foreign investors to purchase Dubai property, there is still condition as the properties that are qualified to own by foreigners will only be those properties that located at stipulated Free Zone in Dubai according to the laws.
Free Zones in Dubai
Thus, properties which are qualified for international buyers in the Free Zones are: Dubai Marina, Dubai Sports City, Jumeirah Village, I.M.P.Z. International Media Production Zone, Shaikh Zayed Road, The Palm Jumeirah, The Lagoons, International City, Jebel Ali Airport, Palm Deira, Dubai Land, Emirates Road, Downtown Dubai and Business Bay.
Lately, Dubai development firms need to stick to a brand new regulation which is Law No 8. With the law, it is compulsory for investors to make escrow accounts toward all Dubai off-plan developments. And the fund will released only with the order and approval from Dubai Land Department. With the implementation of Law No 8, it indicates the end to the days when any developer can simply release a building project and accumulate deposits without having an assurance how the funds are going to use. Many commentators think that this may slow down the real estate and property market in Dubai but will improve investor confidence.
According to the news reporting from Gulfnews.com which is the online news website in Middle East, it claims that Dubai will still be a robust real estate market, while Abu Dhabi is determined to take off. The yields of property rental in Abu Dhabi are estimated to be over than 7% until 2013 and the market future seem to be at the bright side.
At the same time, Damac Capital’s analysts Hany Seif and Pamela Chikhani reporting that Dubai will continue to be an important real estate market in the Gulf for next several years. According to some pundits’ estimation, within the next ten years both internaional and local real estate investors will pour in nearly $300 billion into real estate and property sectors in Dubai. In addition, Majid Azza and Walid Khalfallah who are the HSBC’s real estate analysts claiming that Abu Dhabi is turning to be a key real estate market in Middle East. They believe that the story of Abu Dhabi is receiving trustworthiness. After went through for a unhurried start to the year, sales activity has seen a gradual increase in the second half of 2007. The property market continues to be very tight, along with stronger-than-expected rise in rents (22%) and prices (18%).
Abu Dhabi doesn’t get the burden for development for it doesn’t have the liberal international property laws as well as what Dubai has, however things are start to get better now. The commercial market is especially robust and rates of vacancy are stay under 1%. To comprehend deregulation, Abu Dhabi is going to keep on gaining ground and get a robust growth ifor the years to come.
