Oil Economies / spotlight
BURJ KHALIFA “KHALIFA TOWER” IS THE TALLEST MAN- MADE STRUCTURE IN THE WORLD, AT 829.8 M ( 2,722 FT). >>
It’s no surprise that Dubai—home of the world’s tallest building, the Burj Khalifa—tops the list of hot markets for international real estate development and speculation. Dubai is
well-acknowledged as one of the best investment opportunities in the region of MENA (Middle East and North Afri- c a
region). The large volume of British, American and Asian
professionals looking to relocate to the trade hub of UAE will
ensure a high demand for residential assets for many years t o
come. Although the recent growth seen in 2012 and 2013 has
not been as rapid as the pre-2008 cycle, it is more stable. We are
seeing higher investment in existing buildings as opposed t o
speculation in off-plan developments.
Additionally, mortgage reform and higher down payment requirements by
the Central Bank put less strain on the financial systems by reducing defaults
and providing more liquidity. More significantly, potential new regulations
would help eliminate speculators from falsely “heating up” the market—
causing undue price stress, inflated values and another property bubble.
Fewer new developments in recent years caused property management
to become more competitive, although high-quality experienced managers
have fared well. We have also seen increased demand by tenants and managers alike for legislation governing the field of property management.
In 2007 and 2008, the Real Estate Regulatory Agency (RERA) of Dubai
passed Laws 26 and 33, which govern the relationship between landlords
and tenants in Dubai. These two laws are the fundamental basis for prop-
ON THE HORIZON
As if boasting the world’s tallest building weren’t enough, Dubai
is proving its real estate market has rebounded by unveiling new
and more ambitious developments meant to boost tourism and
accommodate its ever-expanding population.
Mohammed Bin Rashid City—a mixed-use development
featuring a 450-acre park ( 30 percent larger than Hyde Park in
London) and the largest mall in the world. Residential areas will
be constructed using cutting-edge energy savings measures and
Bluewaters island—A large-scale tourist hot spot featuring the
tallest Ferris wheel in the world.
erty managers to effectively manage
properties in Dubai.
The residential sector is shifting
to a landlord-led market in some
key areas, with tenants seeing rents
rise dramatically in a short period
of time; this is an issue that could require further oversight by regulators.
Business culture in the UAE is
welcoming to foreign investment.
Expatriates are required to be respectful of Islamic culture and tradition; however, they are not required to practice it themselves.
Foreign investors are allowed to
own real estate in Dubai, but should
be cautious when making purchases. There have been numerous cases
in the past where foreign investors
have been defrauded by unlicensed
real estate brokers. Dealing only
with a licensed real estate broker,
who is registered with RERA of
Dubai, is essential.
ZUBIN FIROZI, CPM CANDIDATE,
HEAD OF PROPERTY MANAGEMENT
BETTER HOMES LLC
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