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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