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Dubai's Real Estate Market Introduced

The real estate market in Dubai has been experiencing rapid growth over the last few decades. The real estate boom began during the 1980s and accelerated during the 1990s. Growth in the Dubai real estate market has slowed towards the end of the 2000s, due to the global economic crisis, but it is now showing some signs of recovery.

Dubai originally built its economy on oil, but it has recently shifted towards an economy that is based on financial services, tourism and real estate. This shift played a huge role in the growth of the real estate market and encouraged a lot of new development in Dubai.

The many innovative and spectacular new developments that have sprung up in Dubai, together with the relaxed atmosphere that helps people of all nationalities to feel at home has generated a lot of attention around the world.

Dubai is a beautiful country, which has attracted many investors and expatriates with its sunshine, warmth and beaches. The cosmopolitan atmosphere and the attractive exchange rates have attracted a lot of second home owners and expatriates to Dubai, particularly from Europe, South East Asia and South Africa. A large proportion of the workforce in Dubai comes from overseas. In 2005, only about 17 percent of the population were nationals of the UAE.

Dubai has been described as the most Western state in the UAE, in terms of its culture. This is a recent development that has been brought about in order to encourage overseas investment in Dubai. Outside the city of Dubai, it is still possible to experience some of the traditional Islamic and Bedouin cultures of the UAE, but the cities have a very international feel.

Dubai offers the chance to enjoy a superb quality of life. It offers a society that is open to people from all around the world, and a wide range of excellent services and amenities, including entertainment venues, shopping malls, educational institutions including many international schools, and healthcare facilities. Dubai is also full of large, luxurious modern developments and spectacular architecture.

Luxury and extravagance are key in many of the projects that have revolutionized Dubai in recent times. The real estate market does also include some less expensive properties, but it is best known for its luxury market. Modern Islamic architecture has undergone something of a renaissance in recent times, and Dubai has been at the center of this revolution. The sail shaped Burj al Arab hotel, the Emirates Towers, the Palm and World artificial islands, and the tallest building in the world, the Burj Khalifa, inspired by traditional Islamic patterns are among the most spectacular buildings in Dubai. The Walk, The Villa, Business Bay, Jumeirah Beach Residence, Vision Tower, Bay Avenue, and The Executive Towers are some of the other popular developments in Dubai.

As well as being open to integration with Western culture, Dubai is also one of the most stable political environments in the Arab world, making it the ideal entry point into the Arab world for investors, businesses and homeowners.

During the height of the real estate market in Dubai, investors were experiencing rapid profits of as much as 30 percent on their properties. People were buying and selling property in Dubai so rapidly that houses were being sold multiple times before they had even been built. The market at this time was all about speculation.

However, this rapid growth has not continued indefinitely. The real estate market in Dubai was hit hard by the global financial crisis, and many developers have struggled over the last few years. This has caused delays in many of the developments which were still under construction as the crisis began. There has also been a drop in interest in renting and purchasing property in Dubai as foreign buyers have been affected by the crisis in their own countries. There are now many vacant and half-constructed units in Dubai, and prices have dropped significantly since the crisis began.

Dubai's real estate market has been showing signs of recovery, although prices may not rise to their pre-crash levels in the near future. This does present an opportunity for buyers to purchase property in Dubai at much lower prices than they would have been obliged to pay before the economic crisis. The real estate market in Dubai has begun to shift towards a more conventional end-user driven market rather than continuing to focus on selling off-plan and reselling before construction had even begun. This should help to boost confidence in the market.

ArabCin.net Arabian Business

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