Dubai's growing global presence
The UAE has eyed a place on the global map ever since it began implementing a plan to diversify its economy. Whether it be through building the tallest tower or by opening the most luxurious of malls, the goal has always been to create waves globally. It's hardly any surprise that the country has now taken steps to make sure that its realty attracts just as many international investors as the city attracts tourists.
In fact, Dubai and Abu Dhabi have been named among the world's fastest growing premium property markets, ranking seventh and eighth respectively. The findings were revealed in Knight Frank's Prime International Residential Index. The report's editor Andrew Shirley believes that the UAE has come a long way from being just a glitz and glamour icon. "People originally referred to Dubai's growth as a mirage, but it's become an increasingly important hub between Europe and Asia. People want to invest there because of its growing strategic importance."
There is still a clear emphasis on the luxury market and prices in Dubai have gone up by nearly 17% in this area. However, rents are still cheaper when compared to other global cities. According to Knight Frank's Wealth Report 2014, USD 1 million in Dubai 146 square metres of prime property as compared to only 25.5 square metres in London or 32.6 metres in Singapore. Knight Frank's Head of Prime International Residential Index Analysis Kate Everett-Allen said: "Inevitable debates have ensued as to whether Dubai and Dublin are on the cusp of another bubble. However, in both cases, average prices have yet to approach, let alone exceed, their pre-crisis highs."
As the Emirates grows increasingly popular as an investment destination, new projects are being rolled out. According to an economist - Frank Soussa - the current pace of population in Dubai can absorb an average 25,000 units each year. At the same time, the government of Dubai remains committed to keeping rental rates within permissible limits to prevent another property bubble like that of 2008.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. With Dubai's win of hosting Expo 2020, there are bound to be even more projects aimed at putting the city on the world map. Even now, the developer of Burj 2020 has announced that the world's largest commercial building will have a 360-degree observation desk on the topmost floor. We'll be sure to listen out for news of any such projects and keep our readers in the loop on the latest.