Alternatives to Buying Property in Dubai

Where else in the UAE can you profit from real estate now that property in Dubai is so expensive?

By now it’s such an incredibly well documented fact that the Dubai property market is so hot there’s steam coming off it – and it has been in such an agitated state ever since a relatively tentative announcement was made that foreigners would get the right to own freehold property within the emirate.  Now that that announcement has become reality, the market has matured nicely and is a thriving addition to the economy of Dubai.  The downside of all this great news is that if you haven’t already bought real estate in Dubai you may well be priced out of the market and/or have missed your opportunity to profit significantly.

So here’s something to soften that blow – there are alternatives to buying property in Dubai for those who love the wealth of the region, the type of real estate market emerging across the UAE and who want to potentially enjoy substantial positive movement in terms of the value of the assets they buy.  There are emerging pockets of property based potential across the UAE in locations such as Abu Dhabi, Ajman and Ras Al Khaimah…

Let’s look at Abu Dhabi first.  With something in the region of a five times increase in the price of oil in six years, oil rich Abu Dhabi’s economy has gone from strength to strength.  At the same time the UAE currency has weakened in line with the US dollar meaning that those with euros and sterling in their pocket who want to cash in on the booming emirate are in a great position to do so.  There are announced and active property based projects in Abu Dhabi amounting to USD 2.4 trillion, and what’s more, a leading real estate expert in the region has predicted upwards of 20% gains from property in Abu Dhabi before 2008 is out.

Next up there’s Ajman.  Property prices in this emirate went up by 30% practically overnight when an announcement was made that the emirate would get its own airport – and as construction on the airport develops, so prices are expected to continue to rise. 

Finally there’s property in Ras Al Khaimah to consider for investment purposes.  Apparently there are well over thirty large residential real estate development projects planned or under construction, the tourism market in the emirate is advancing, the professional fed international population is predicted by the government to expand from 200,000 to in the region of three quarters of a million by 2020, and Ras Al Khaimah is already considered a ‘suburb of Dubai’ and has a population that feeds that emirate too - meaning property based demand has only just begun to emerge.

Clearly there are alternatives across the UAE to property in Dubai – but investors need to think about the sustainability of the attractiveness of a given market’s real estate sector and how exactly they want to profit from that market.  Clearly in Ras Al Khaimah there would appear to be opportunities to let to a growing base of demand – whereas in Abu Dhabi perhaps an investor can make a killing by buying off plan today and flipping by the end of 2008.  Think about how you want to profit and look at each market’s potential to be able to offer you the returns you desire.