Since the right for foreign nationals to own freehold property in Dubai was passed into law, the prices for residential real estate in the emirate have famously gone through the roof. And even before the law was passed, many chose to speculate on the real estate market in Dubai and they have since gone on to profit substantially.
Now, having seen the pattern of house price appreciation in Dubai, developers and investors are turning their attentions to the likes of Abu Dhabi and Ajman where the real estate markets are emerging and where there is greater room for profit potential, so this bodes the question, where next for the property market in Dubai?
The good news is that despite reports of an almost doubling of property prices overnight in less than a year in Abu Dhabi by a representative of Alternative Capital Invest GmbH, a development company with real estate interests in the emirate, attention is still firmly centred on Dubai. Dubai has the most liberal and mature property ownership rights for foreign nationals in the United Arab Emirates, it has one of the most well established multi-disciplinary business environments, it is the most liberal emirate in terms of the quality of life that non-Muslims can enjoy and the employment prospects in Dubai are among the best in the UAE.
So, from an investor’s point of view, there are still a hundred and one reasons supporting the continued dominance of Dubai’s property market – if you’re seeking long term rental yield at least. The emerging and fledgling markets in Ras Al-Khaima and Ajman may however offer investors the chance to speculate and profit from advancing prices.
A little depends on your method of approach for property investment success as to which emirate you will favour out of all those in the UAE – but if you want a tried and tested market where prices are still rising and demand remains intense, Dubai should not be overlooked.
Examining the property markets of the region from a slightly broader perspective and in the scope of the global financial situation at the moment, Arab nationals are being heavily encouraged to invest in their own region to avoid the knocks and shakes expected in markets such as the UK, US and Europe. What’s more, the strong oil prices and general pattern of economic growth in the United Arab Emirates is creating something of a bullish market – as demonstrated by the fact that shares across the region’s stock market have again rallied today.
Dubai based Emaar Properties was one of the firms leading the positive run, with property stocks from across the region doing exceptionally well. In terms of where next for the property market in Dubai then – more of the same positive growth probably!
