Emerging Property Markets
Dubai: The land full of Eastern promise
With construction aplenty currently taking place in Dubai, Mike Schwarz took a trip to the desert to find out exactly what all the fuss is about and returned feeling slightly overawed.
Like many others, I'd read and heard the hype of course - where east meets west, the rumour of strange goings on in the desert and such like - but nothing prepares you for what greets you on reaching Dubai.
The first task is to deal with the intense heat resembling a furnace that seems to be all enveloping. It is how I imagine putting my head in to a hot oven might be! It is common for the temperatures to reach 45 degrees plus in June and it is humid too. But air conditioning is plentiful and one soon acclimatises.
Yes it is true that the place is currently a major construction site working around the clock - perhaps even the largest the world has ever witnessed; and, depending on whom you listen to, anything between 20% to 30% of the world's tower crane stock is deployed there right now. But it is essential to look beyond what the eye currently sees and to envisage how things will look in two or three year's time. These people clearly know how to deliver their dream and they have the powers of persuasion to encourage Brits to come in ever growing numbers to what will be a city to rival any city in the world when the bulk of the work concludes in 2010.
Modern Dubai traces its origins to the 1830's. At that time, the small fishing village on the Shindagha peninsula at the mouth of the Creek was settled by a branch of the Bani Yas tribe, originally from the Liwa oasis to the south, led by the Maktoum family who still rule the emirates today. By the late 1870's, Dubai was often referred to as the principal port on the Gulf coast and, by the turn of the century, was reputed to have had the largest souks in Arabia. Pearling, which was the mainstay of the city's prosperity for many years, succumbed to the development of the cultured pearl in the 1940's. But Dubai's enterprising merchants bounced back, developing a thriving trade in gold and other commodities. But in 1966 whilst England were winning the football World Cup, Dubai were creating their own slice of history by discovering oil in the desert and the rest, as they say, is history.
Without doubt, there is in Dubai not only a desire, but also an ability to turn vision into reality. They are building higher than ever before - the Burj Tower will exceed 700 metres when it opens in 2008, (making the Petronas Towers and the Sears Tower pale into insignificance), offering residential apartments for sky living. The indoor ski slope is the biggest in the world, as is The Dubai Mall - the largest shopping complex of its kind. The Dubai Polo & Equestrian Club at Arabian Ranches, opened in 2006, is delightful, well equipped and reminiscent of a colonial past. And although it is just empty desert right now, the Dubailand theme park will make Disneyland look tiny by comparison. The current rate of building growth is certainly impressive. New tower blocks, villas and apartments are springing up all over the city. However the transport infrastructure is struggling to keep pace with the current rate of growth. Traffic jams are a recurring problem, yet there are no buses, trams or trains to move people around the city. That said, a major new mono rail project is underway and will be complete within the next two years, helping to alleviate the situation. One has the feeling that it will be a most efficient mono rail too!
Old Dubai is centred around the Creek area, but the new Dubai, located a few kilometres further down the coast towards Abu Dhabi, is the main focus for the present city centre development. Large areas throughout the city are verdant, creating a stark and welcome contrast - roadside verges, parks and golf courses are lush and every palm tree has its own individual irrigation sprinkler system, all of this made possible by a massive capital investment in a desalination programme.
Why invest in Dubai?
Dubai's unique attractions and commercial plans continue to attract a succession of overseas investors, many from Britain. And this go ahead emirate has no plans to rest on its laurels either. Some of the key reasons to invest include: Year round sunshine. Cosmopolitan community. One of the world's highest standards of living. Low inflation. One of the safest cities in the world. Low cost of living. Stable currency. Peaceful co-existence of ethnic groups. No Corporate Tax. No Income Tax. 100% Ownership in Free Zones. No foreign exchange controls, trade barriers or quotas. No restrictions on capital repatriation. Strong investor incentives and protections. Easy access to key decision makers. Strong ex-pat community.
The property portfolio
Two of the principle developers in Dubai are Nakheel and EMAAR; both are heavily engaged in a wide range of serious building and construction projects, including residential villas, apartments, towers, commercial developments and more besides.
One of the most exciting projects is the Palm Jumeirah, a man made island being developed off shore. The Palm covers an area of 7 million square metres and will add 220 kilometres of beach to the coast of UAE. The Palm will house over 5,000 people in 2,400 spectacular shoreline apartments and secluded villas. We took a boat trip between two of the fronds of the palm tree for a close up view of these villas (as pictured). They look superb and with the advantage of a private beach, they are sure to be forever in huge demand! Shops, restaurants, entertainment complexes and hotels complete this quite extraordinary development. Prices start from £214,815 for a two bedroom shoreline apartment. A one bedroom town house in the Golden Mile starts at £295,556. Further details on these and other Dubai properties are available from Key2Dubai, a real estate company with offices in both the UK and Dubai. They specialise in new build off plan and the resale of completed projects. The executives at Key2Dubai have many years experience in the destination development business and their staff come from specialised backgrounds in construction, design, sales and lettings, PR and marketing.
Arabian Ranches offers a peaceful setting out of the city centre. Individually crafted homes provide accommodation of varying sizes and proportions. The properties are set around a world class golf course in a stunning desert setting, many with uninterrupted views. We took a good look inside three of the villas that are ready and which will soon be welcoming their first owners across the threshold. All are spacious, light and airy, finished to a high standard and are already commanding a premium resale value. As an example: A Mirador Type 11 Spanish style villa with 5 bedrooms costs from £450,067. Gazelle Al Reem 3: a 2 bedroom villa is from £214,815. For details contact Key2Dubai.
Emirates Hills is situated on the main Sheikh Zayed Road, close to the city's well known landmarks. The area comprises The Springs, The Meadows, The Greens, Emirates Hills, The Lakes, The Views and the Emirates Golf Club. Emirates Hills is a truly self contained community with schools, communal pools, supermarkets and coffee shops. A Springs Villa Type 4M with 3 bedrooms costs from £185,185. The two storey, six bedroom Meadows Type 8 Villa will set you back £473,037. For details contact Key2Dubai.
Dubai Sports City is the very latest development to be inspired by the power of sport. Bringing together a unique combination of sports, lifestyle, leisure, entertainment and commerce together in one area, the project will create an engineered environment where people are drawn to live and fulfil sporting dreams and aspirations. The 50 million square feet development will rise from the desert within the Dubailand project. A 1 bedroom apartment in the Champions Tower will cost from £76,792, whilst a 3 bedroom mid unit villa starts from £240,000. For details contact Key2Dubai.
The Dubai Marina is an impressive high rise development comprising 220 waterfront apartments situated around a marina. Dubai Marina offers a chic, urban lifestyle close to many of Dubai's well known landmarks, including Internet City, The American University and the Emirates Golf Club. A sixth floor studio in the Yacht Bay development costs from £71,778. Whereas a 2 bedroom apartment on the twenty third floor of the Princess Tower is from £182,041. For details contact Key2Dubai.
There is no doubt that those involved in the development of Dubai know exactly what they are doing and where they are going. The Dubai skyline of 2010 will look unrecognisable from what exists today and will rival any in the world. The Manhattan skyline has always been a must see place for many people. My advice is, don't miss this one and be sure to put it high on your list of places to visit. On my return someone asked me if the city was tacky. Far from it was my reply. The place is crazy, but cosmopolitan and classy with it. Desert living may not be for everyone, but would I go back? You bet!
Dubai facts
* Current population is 1.2 million, but is expected to reach 2 million plus by 2010.
* Over 6 million tourists visited Dubai last year and this is projected to reach 15 million by 2010.
* Dubai remains one of the safest cities in the world.
* The emirate has a sub tropical climate and sunny, blue skies can be expected most days of the year.
* Dubai can boast one of the world's highest standards of living.
* Flight time from London is seven hours.
* The British are very welcome in Dubai and thousands have already settled there or plan to move soon.
Mike travelled Pearl Class to Dubai by Etihad Airways, the national carrier of the United Arab Emirates, which operates daily direct services to Abu Dhabi from Heathrow, Gatwick and Manchester.
Read the latest World Property Bulletin ezine now FREE
Search and browse property in Dubai
For further information:
Key2Dubai
Nakheel
EMAAR
Etihad Airways
World of Property has produced Emerge, a handy 60 page guide to emerging property markets. To request a FREE copy, just Click Here, enter your address details and type the word Emerge in the Enquiry box and we'll do the rest. Or you can contact us by telephone during normal office hours on +44 (0) 1323 726040 to claim your free copy.
Article first published in June 2006.


