One key thing to note is that so
far the growth of Dubai has been consistently defying all analysts.
Since the past 5 years all sorts of experts have been saying that it is
about time the Real Estate market in Dubai stopped being so profitable
but so far the bubble has not burst. Though such growth has never been
sustainable before no one is able to explain why it continues to thrive
in Dubai. The GCC has the 17th largest economy in the world comprising
of 500,000 high-income earners and a GDP of $525 billion. The total ½
trillion dollar economy creates more than $500 billion in revenue that
is used for investment. This volume is believed to boost the Real
Estate and construction sector in Dubai.
With
a growth rate of 25% per year the UAE GDP is expected to reach anywhere
from Dh 500-900 billion by the year 2010. The UAE has already surpassed
Egypt as the 2nd largest economy in the Arab countries. It is now
second to Saudi Arabia, which is going through its own explosive growth
period. The projects in UAE total at around $225 billion with Dubai
holding nearly $125 billion.
The population
of Dubai is also expected to go from the current 1.1 million to 4
million by the year 2017 and by 2020 it may exceed 5 million. This
growth is expected to put a great strain on the infrastructure. The
government has already spent $2.5 working on the road network covering
9,600 kilometers.
Dubai has always been the most popular place to
buy investment property in the UAE because of its visitor friendly
policies. There are many investment opportunities available to people
in Dubai. In the past 2 years other emirates have also noticed the
profitability from Real Estate development and they are also beginning
to contribute to the growth of the region.
Because of the heavy investment in the tourism, infrastructure has further encouraged the growth of the Real Estate market.
Of
course real estate analysts keep calculating the fate of Dubai’s real
estate sector, the fact remains there are multiple points of view on
the matter. If we go by parallels again, no one should forget the fall
of real estate prices in Hong Kong some years ago. But Dubai real
estate is way ahead of its Hong Kong counterpart back then.
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