Why real estate? With yields ranging from 7-12%. Which
is higher than most international markets, real estate continues to be
the most attractive investment opportunity in the UAE. Moreover Dubai property market in particular continues
to absorb the supply of property that emerges. Real estate is now a
large part of the dynamic UAE economy and will help to sustain the
booming economy in any oil price downturn. It’s also worth mentioning
that much of the real estate investment come from equity sources and not
borrowed money. So, it is unlikely to dry up and leave property projects
standing still.
Also, the boom in real estate investments in the UAE led
to massive growth in allied sectors such as the paint industry, interior
design, kitchen, home technology, arts and crafts, garden and
landscaping. Property and festive gifts and decorations in addition to
many other sectors.
B o o m
Hotel Rooms in Dubai Predicted to Increase Along with Demand
what more is there to say about a city
that announces a new project each day? Around 20% of the world’s construction
cranes are operating in Dubai, Dubai will soon be the home to the world’s
tallest building, Burj Dubai, soaring more than 2,000 feet into the sky ,as well
as the world’s tallest commercial tower and the tallest hotel apartments. To
absorb the large number of new residents coming into the Emirates, Dubai will need more than
500,000 additional residential units in future years. The recent study published
by the Dubai chamber of commerce and Industry, shows that Dubai’s construction
and building sector contributed 12.2% to the Emirates Non-Oil GDP” in 2004 and
has risen to 27% annually. Dubai
will need at least around 500,000 additional residential units in the next10
years. It is established that more than 195,000 residential units
will be completed within the next 5 years in Dubai alone. Around 100 office towers will be added to the real estate market by this
year (2007) With yields ranging from 7-12 %( higher than most international markets)
real estate continued to remain attractive as an investment class. The number of active construction companies in Dubai increased to 5,938
in 2005/2006, according to (DCCI) Among active construction companies in Dubai, contracting of civil engineering works
represented 45% of all construction companies working in the sector followed
by building completion with 33%, building installation 20% and site
preparation 2%. Dubai
Property Market continues to absorb the supply of property it emerges. Real
Estate is now a large part of the dynamic U.A.E economy, and will help to
sustain the booming economy in any oil price downturn. Moreover; much of this
investment is from equity sources and not borrowed money. So it is unlikely
to dry up and leave property incomplete. This Boom led to massive growth in allied sectors,
including but not limited to Paint Industry, Interior Design, Kitchen, Home Tech, Arts
and Crafts, Garden and Landscaping, property and festive gifts and decorations.
