Real Estate in Dubai: Trends As per the UAE 2005 census, of the UAE population of 4.1 million, 79.9 per cent are expatriates (or foreign nationals) including a large segment of British nationals. Dubai , therefore, has a felt need for residences. With the economy of the country booming and more expatriates making the UAE their second

home, demand for quality housing and commercial space surged. At about the same time, Emaar Properties, a global real estate major, pioneered the concept of freehold properties in the region by unveiling the Emirates Hills development in 1999. This was in line with the vision of UAE Vice President and Prime Minister and Ruler of Dubai His Highness General Sheikh Mohammed Bin Rashid Al Maktoum to develop Dubai as a hub for the Knowledge Economy.

Alongside the development of Dubai Internet City and Dubai Media City, Dubai also delivered quality real estate with Emaar's projects, which for the first time, assured expatriates the opportunity to have their own home in the city.

From an investment perspective, property is a "best buy" in Dubai because high rental prices in the Emirate assure some of the top rental yields in the world.

Bright prospects
Dubai 's population is expected to double by 2010 to more than two million people, and by 2017 up to four million. The number of tourists visiting Dubai grew by almost 50 per cent from 2001 to 2004 to 5.4 million people, and Dubai government targets 15 million visitors by 2010. Therefore over-supply is still not a risk despite the hectic pace of activity in the region's construction sector.
The UAE's real estate sector enjoys the benefits of huge liquidity. Unless oil prices drop drastically - an unlikely scenario given the current global realities - the current levels of high liquidity will continue.
Also negative real interest rates make real estate a strong buy because the debt incurred in buying property erodes in real terms as the equity value goes up due to inflation.
According to a recent report by Standard Chartered Bank, Dubai property is still attractively priced in absolute and real terms in comparison with other key cities in the world.

Dubai Property Laws
Dubai's real estate sector gained ground and came of age this year with the promulgation of the Dubai Property Law in March 2006 followed by a decree listing the freehold areas in the emirate in July 2006. A third law governing apartments, the Condominium Law, is expected by the end of the year.
According to the Dubai Property Law No 7 of 2006 concerning Real Property Registration in Dubai, non-nationals may be granted the right to freehold ownership without time restrictions or usufruct right or leasehold right over a real property for a period not exceeding 99 years, subject to the Ruler's approval and in specific areas in the Emirate determined by him.
Following the promulgation of the Dubai Property Law in March 2006 and a decree listing the designated freehold areas in the emirate, the best places to buy are the ones that come under the law's purview. The list includes 23 areas and 45 plots including The World, The Palm projects, Emaar's Burj Dubai Downtown, Arabian Ranches, Dubai Marina and Emirates Hills developments.