Dubai is the fastest growing city in the world. Dubai as a location has many benefits and many attractions. The cities economy is riding high, the city, upon realizing it would not be able to support itself on oil wealth forever looked to tourism to provide a prosperous future. Huge hotels have been built, all kinds of tourists have been catered for, especially the very wealthy. Property in Dubai has benefited enormously from this.
The ever growing demand for prime property has also engulfed the emirates and in the last few years, prime locations in the emirates like Dubai have seen a real estate boom. Considering that Dubai was a highly competitive but low priced market, this real estate boom is the last thing that the government wants. A lot of experts feel that Dubai is heading pretty much the same way where some of the Asian markets have headed in the past, towards overpricing. The reason for this is pretty simple. There is not enough supply to meet the demand in Dubai.
With the supply of apartments available for freehold purchase far outstripping the supply of villas, it's no wonder that the Dubai property market is seeing a serious imbalance of demand between the two. While there are large quantities of high-rise buildings appearing all over the place, especially in the Dubai Marina area, the development of villas is a lot lower due to the square footage that houses cover. Basically, villas are less profitable than apartments that are stacked on top of each other twenty stories high.
But the future prospect of real estate market of Dubai is quite good for 2007 and beyond. This is because of the fact that there is pretty intense and increasing demand for property in Dubai with around 5,000 new families shifting their base to Dubai every month. That is where, supply cannot keep up with demand, which in turn increases rental rates charged and of course the underlying value of completed resale properties. There are a lot of people buying and selling property in Dubai and the motion of the market has been exceptional in a time as short as 3 years.
The property and real estate market in Dubai has shown as marked improvement in the Gross Domestic Product that it has generated. In fact there are projects of a sum of $42.5 that are still undergoing construction. The current income from rent of property in Dubai ranges from 8 to 10%.
Owning property in Dubai can be quite fruitful for you in the long run as the future prospects in the market looks bright. The expectation of its capital growth is estimated to be more than 15% p.a.
With upcoming features like the World, the largest shopping mall, the first underground hotel, the tallest building and various other attractions it is inevitable that the cost of property will be sky high in future. This is lucrative enough for you invest in the property in Dubai.
Rental yields in Dubai are very attractive, in terms of purchasing a property for investment and renting, an investor will be able to look to both capital appreciation and rental income when making an investment in property in Dubai, an attraction that is at the moment not always true in popular overseas property investment destinations.
