United Arab Emirates:

Hotspots

investment property hotspots in the united arab emirates

Contents

Dubai

It goes without saying that Dubai is the most popular tourist destination in the UAE and attracts millions of visitors each year. It is an expensive, flamboyant city that has been subject to consistent development over the years. Known as 'the city of gold', Dubai offers a very high standard of living, a full range of five star services and some of the best shopping in the world. It also has a range of manmade beaches, the most popular being Jumeirah Beach offering everything from jet skiing to volleyball.

As the mass of developments which have been cropping up all over the city over the last few years near completion, concerns are being raised as to whether demand will be able to keep up with supply. This, coupled with astronomical house prices rises in recent years, may contribute to a distinct 'cooling off' in this market.

Keep an eye out for the spectacular Dubai Waterfront, an 81 million square metre  waterfront development bigger than Manhattan, comprising 250 master planned communities which is guaranteed to impress. Of even greater prowess promises to be Versace's personalised residential resort overlooking Dubai Creek. Here you will find £178 dinner plates, £1,700 bath robes and a special under-beach cooling so that guests don't burn their feet en route to the sea!

Abu Dhabi

Named as the best Arab city to live in by Saneou Al Hadath magazine, the "golden city of the Gulf" and emirate capital, Abu Dhabi is a modern and exciting city which combines the culture and traditions of the Arabian people with diverse up to date real estate. Previously hidden in the shadow of its neighbouring city Dubai, Abu Dhabi, although not as lively, has recently proved its true potential as both a luxury and glamorous holiday destination and as an interesting investment choice. Around every corner, visitors will come across stylish hotels and eateries (including the Emirates Palace hotel which is one of the most expensive hotels in the world), interspersed with amazing architectural sites including towering sky scrapers. The fortunes of this emirate will always be linked, to a certain extent, to the successes of Dubai but being slightly earlier on its development path, investors are not faced with quite the oversupply risks plaguing, or at least being talked about, in Dubai. Plans for an inter-city train and metro network complement the 'Plan Abu Dhabi 2030' which is striving to implement an expansion of the transport network in order to cater for increased visitor and resident numbers. 

Ras al-Khaimah

As the northernmost of all the emirates, Ras al-Khaimah is politically safe, free from corporate and income taxes, has competitive labour, office and warehouse rates, a low cost of living, a progressive and fast growing Free Zone, easy road, sea and air access and a beautiful 64 km coastline. As such it is widely expected to become the premier tourist destination of the UAE and with the government keen to preserve its country's natural beauty, it will be protected from overdevelopment. High-density tower-blocks, over-crowding and congestion should all be kept to a minimum.

Development has focused on lifestyle and industrial sectors meaning RAK has attracted a high percentage of real estate, leisure, educational and hospitality investments. What is more, increasing numbers of new and expanding industries mean that RAK will soon own over 50% of UAE Total Production capacity. Indicative of its economic strength was the 18% GDP growth achieved in 2007 (Eman Al Baik). On the back of this growth, RAK's share of the entire region's wealth is predicted to grow exponentially over the next few years according to a cross section of industry leaders at the RAK conference last year. Inward investment is expected to rocket to as much as AED50 billion in the coming years and should maintain RAK's position as the emirate with the third-highest level of project investment relative to GDP in the UAE. 

Appealingly, property prices in RAK sit at around one third of those in Dubai with freehold ownership granted for every property. Frontline properties here are available from £50,000 and luxury 3 bed apartments sell for around £200,000.

Fujairah

Fujairah has a lot to offer the history-hungry visitor with a high concentration of archeological sites, some of which date back to as early as the Iron Age. It also boasts many beautiful waterfalls and beaches and a rich natural beauty. A law which would allow foreign property ownership (similar to Dubai's) is currently being considered, although at present the only opportunity for freehold investment for foreigners is the 270 apartment Al Jabar Tower. Otherwise, leasehold investment opportunities have been open to expatriates for the last few years. As in other emirates, The Fujairah Free Zone offers the opportunity for 100% foreign owned businesses. With confident plans to triple current tourist bedroom supply from 1500 to 4500 by 2012, tourist arrivals are expected to increase over the coming years and a proposed Dubai-Fujairah road due to complete in 2008 should boost numbers further by opening up accessibility.

Ajman

The smallest emirate, Ajman has recently experienced an influx of foreign investment following the announcement that a new international airport will be in operation by 2011. Its popularity is therefore likely to increase over the next few years especially in line with a new £30 billion coastal self-contained city to be co-developed by the government of Ajman and Solidere International. Aside from Dubai, Ajman is the only other emirate where foreigners can buy and own freehold villas and townhouses. It also has a growing free zone industrial area and a strategically located port. Reports from www.myglobalinvestments.com suggest that rental yields in the region of 8-10% and capital appreciation in the region of 30% can be achieved. Villas in Ajman Green City are available from around £148,648.

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