Dubai Investment: Economy
Dubai property and land investors will be interested in Dubai’s buoyant economic situation. Originally highly dependent on oil, Dubai's economy is now firmly based on real estate, construction and tourism – all essential considerations if you plan to buy Dubai homes. High economic growth, increasing tourist numbers and competitive property prices, particularly property in an off-plan Dubai development, are vital factors to consider in your decision to buy Dubai property.
Dubai and the UAE maintain impressive economic growth and Dubai alone is forecast to achieve over 7.2% GDP a year between 2009 and 2012. The UAE ranks in 8th place for investment confidence and in 2007, foreign investment in the UAE totalled US$13.2 billion. As major focal points for foreign direct investment, Dubai and Abu Dhabi are important commercial centres and have vast influxes of foreign workers whose demand to rent or buy Dubai properties makes property investment in Dubai additionally attractive.
Dubai Investment: Tourism Potential
Tourism in Dubai and the UAE has grown spectacularly over the last few years and this expansion is set to continue. In Dubai, tourism is the fastest-growing sector of the economy, already accounting for 30% of direct GDP and Dubai expects over 10 million visitors in 2010 – a promising forecast for those who own buy-to-let Dubai properties. Dubai and the UAE are easily accessible with a vast choice of flights. In addition, they are also popular stop-off destinations for long-haul passengers. Dubai and the UAE offer a first-class choice of leisure and holiday activities with further investment planned. All these factors combine to make buying in Dubai a prime opportunity for Dubai property investment.
Dubai Investment: Property Market
When planning to buy Dubai property, the Dubai real estate market must be considered as well as the general UAE property situation. The construction of Dubai developments has been massive over the last few years with no slowdown expected anytime soon – the Dubai property market will eventually boast over 400 sky scrapers – and there has also been huge investment in Abu Dhabi property and Sharjah homes. Those considering Dubai land and investing in Dubai can expect rental yields of over 5% with higher yields of up to 10% in Abu Dhabi. Ras Al Khaimah property is also showing promising signs as an emerging market.
For more information, download the Dubai Land and Property Investment Guide.
