Abu Dhabi and Dubai Leads The Real Estate Sector in UAE
UAE today has a booming economy, with a growth rate of about 13 percent. This fastest growing place has its real estate sector contributing the most to it. Talking about the real estate sector, it has given some unique architectural properties with stunning designs. Dubai and Abu Dhabi, the two important Emirates, are showing a rapid growth in their real estate sector. These places have experienced the boom in their economy and let 4047 real estate and related companies grow, between them. Out of which 1588 companies and contracting offices are in Dubai and 1588 management, investment and real estate companies in Abu Dhabi. On the Index of Economic Freedom 2008, UAE has had a overall score of 62.8 percent and was ranked 63rd. Also, as per a global survey, UAE was ranked sixth most popular destination to work and number one destination for workers already based in the Middle East.
‘As one of the country’s most profitable investment sources, the real estate sector is attracting the attention of investors from all over the globe, due in large part to the composed projects and environment that the market provides for investment,’ Ali Fakhruddin, Director of leading UAE real estate company Fakhruddin Properties, commented following the release of these figures. ‘As a result, bank funding for the real estate market alone in 2007 amounted to 45 billion dirhams -, of a total of 75 billion dirhams – allocated for the construction sector,’ he said.
Let’s first talk about Dubai real estate. Dubai has been growing intensely, especially in the real estate sector. It offers some of the most lucrative investment properties with spectacular returns. Dubai has maintained and retained it’s real estate value, even when the global economic slowdown has led to the property prices fall all over the world. With stunning properties and distinctive architecture, it has redefined the luxury living. Properties like The Palm, Burj Dubai, Dubai Land, Business Bay, Dubai Sports City, Dubai Waterfront, Jumeriah Lake Towers and several more, have been developed in Dubai and some of them have even created world records for their architecture. Also, some of the most renowned celebrities have bought properties in Dubai and are delighted to have their names associated with them. This includes, stars like David Beckham, Shahrukh Khan, Michael Schumacher, Armani and several more.
With the introduction of Freehold Law, a huge number of foreign investors have been encouraged to enter the market. This law was passed in 2002 to boost investor’s confidence in the real estate market and its legal system. Most foreigners find it convenient to invest in properties in Dubai, so that they can go through the entire procedure without any hassle.
In addition to these, several multi national companies have entered Dubai and the favourable law which operates in Dubai, like the “no tax” law, has attracted skilled and professional workers from all over the world, which in turn have increased the demand for residential as well as office spaces. One such instance is the entertainment and recreational project, The Emirates. This spectacular project has already caught the international attention.
Abu Dhabi Real Estate
Abu Dhabi is all set to compete with Dubai. It is the largest Emirate and the capital of United Arab Emirates. It is known that the Abu Dhabi economy is growing and is predicted to increase its GBP to 30 billion. With the rise in prices in Dubai property Abu Dhabi is the next destination, where the investors have a lucrative opportunity to invest in the real estate sector. One other factor that governs the popularity of Abu Dhabi, as a destination for property investors, is its perfect location. It is situated at Dubai border and gives convenient access to Dubai airport and the Jebel Ali Freezone and harbour are easily accessible from here.
One compelling factor which has led to the boom in Abu Dhabi properties is the introduction of new property ownership rules. This has welcomed foreign investors from all over the world to invest in Abu Dhabi’s real estate sector. The new law suggests that the sales contract for any real estate needs to be registered with the Emirate’s Land Department. This law would be introduced to strengthen investor’s confidence in the property market in Abu Dhabi. The other law suggests, here properties are available at 50 to 99 years lease, which currently only applies on properties and not on land or in other words it is applied to only apartments. Also, these new laws have attracted several investors to commence their projects in Abu Dhabi and it is anticipated, the new law would attract several investors. One such instance is the Al Raha development. The first phase of this development has been sold out and every unit was bought by the local emirates.
Abu Dhabi is the destination of stunning infrastructure, magnificent shopping complexes and exquisite tourist developments. It is one of the safest tourist destinations and offers best tourist facilities. Today it holds more than 120 million trees and offers luxury hotels, parks and gardens, lavish villas and mansions, making it an ideal destination to live in.
Concluding this discussion, Abu Dhabi is said to be next to Dubai. The investors who cannot afford to invest in properties in Dubai are today turning to its neighbouring Emirate Abu Dhabi. With the introduction of new laws people have geared up their investments in Abu Dhabi as well. But the experts say, Abu Dhabi still needs to revive its real estate laws and take it to the standard where Dubai is today.
