Economy of Dubai - Real Estate and Property

Real Estate and Property

The government's decision to diversify from a trade-based but oil-reliant economy to one that is service- and tourism-oriented has made real estate more valuable, resulting in the property boom from 2004–2008. Construction on a large scale has turned Dubai into one of the fastest-growing cities in the world.

The property boom is largely driven by megaprojects — these are just some of many projects planned for Dubai:

• Off-shore:
  • Palm Islands
  • The World
• Inland:
  • Dubai Marina
  • The Burj Khalifa Complex
  • Dubai Waterfront
  • Business Bay
  • Dubailand
  • Jumeirah Village

The aspirations of the ruling sheikhs are reflected by the ultra-modern architecture of the city. Dubai is home to iconic skyscrapers such as Emirates Towers, which are the 12th and 24th tallest buildings in the world and the Burj-al-Arab hotel, located on its very own island in the Persian Gulf and currently the world's tallest and most expensive hotel.

Emaar Properties constructed the world's tallest structure, the Burj Khalifa. The height of the skyscraper is 828 m (2,717 ft) tall, with 160 floors. Burj Khalifa's neighbour is another behemoth: the world's largest shopping mall — the Dubai Mall.

Also under construction is what is planned to become Dubai's new central business district, named Business Bay. The project, when completed, will feature a phenomenal 500 skyscrapers built around an artificial extension of the existing Dubai Creek.

In February 2005, the construction of Dubai Waterfront was announced, it will be 2½ times the size of Washington, D.C., roughly seven times the size of the island of Manhattan. Dubai Waterfront will be a mix of canals and islands full of hotels and residential areas that will add 800 km (500 mi) of man-made waterfront. It will also contain Al Burj, another one of the tallest buildings in the world.

Dubai has also launched Dubiotech. This is a new park to be targeted at Biotech companies working in pharma, medical fields, genetic research and even biodefense. The aim of this park is to foster the growth of this sector in Dubai and to utilize the region's talent in addressing this rapidly growing sector.

One of Dubai's recent groundbreaking plans is for a 30-story, 200 apartment skyscraper that will slowly rotate at its base, making a 360 degree revolution once a week. The world's first rotating skyscraper is to be in the center of the Dubailand complex and should be completed by 2009.

The International Media Production Zone is a project targeted at creating a hub for printers, publishers, media production companies, and related industry segments. Launched in 2003, the project is scheduled to be completed in 2006.

A new project was announced on May 1, 2006 by the authorities. It is named Bawadi and will consist of a 27 billion US-dollar investment intended to increase Dubai's number of hotel rooms by 29,000, doubling it from the current figure offers now. The largest complex will be called "Asia, Asia" and will be the largest hotel in the world with more than 6,500 rooms.

The first villa freehold properties that were occupied by non-UAE nationals were The Meadows, The Springs, and The Lakes (high-end neighbourhoods designed by Emaar Properties, collectively called Emirates Hills).

Expatriates of various nationalities have been pouring capital into Dubai in the past several years, greatly contributing to the city's prosperity. Iranian expatriates alone are estimated to have invested up to $200 billion in Dubai. From 2005 to 2009, trade between Dubai and Iran tripled to $12 billion.

Dubai interests have also purchased large amounts of real estate in foreign countries, in particular snapping up trophy properties in global centers like New York and London. Purchases in 2005 included New York's 230 Park Avenue (formerly known as the New York Central Building or the Helmsley Building) and Essex House on Central Park South.

See the Dubai Department of Tourism and Commerce Marketing's list of developments in Dubai for more information.