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Buying in Dubai
Lakeside development
Lakeside, from £46,912 through Our Home Abroad
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The Market

Take Manhattan, New York’s showpiece island, and multiply it seven-fold and you will have an indication of the scale of the latest project in development in Dubai, known as the Dubai Waterfront. So great is the ambition it will add 500 miles of coastline to the Emirate, creating 45 miles of canals, a new city centre and one of the world’s tallest buildings, which will accommodate over 400,000 people in an area of more than 170 square miles.

Dubai Waterfront is no one-off project. In the last decade three Palm Island developments – Jumeirah, Jebel Ali and Deira – and The World – literally an outline map of the globe – have begun construction locally. If the pace of development wasn’t so breathtaking one might imagine it was a futuristic vision concocted by a fantasist in a dream – but it’s far from that and the man driving the expansion is made of flesh and blood, His Highness Sheikh Mohammed bin Rashid Al Maktoum.

“The ruler of Dubai since 2006, the former Crown Prince took it upon himself to oversee the transformation of Dubai from what was once a minor port into a leading centre of business and commerce and a growing tourist hotspot,” says Peter Riddoch, CEO of DAMAC Properties, a leading developer. “Two decades ago, the ruling family decided to change the country from an oil-focused economy to concentrate on services, particularly tourism, and the city that has been created – and that is still emerging – is as a result of that vision.”




Since 2002, when Sheikh Mohammed issued a decree allowing foreigners to buy freehold property in the country, Dubai’s property market has stepped up a gear. Research suggests that 85% of off-plan apartments and 50% of off-plan villas were bought in 2004 by speculators, most of whom – many foreigners amongst them – intend to sell before completion. Little or no taxes worth speaking of – see buyer’s guide – make the transaction a relatively inexpensive one, while reported capital gains of 30% per annum since 2002 have made it a lucrative venture. Of course, there are no guarantees that property prices will continue to rise so aggressively.
Burj al Arab tower
The Burj al-Arab, a 7-star hotel said to
represent an Arab dhow

Supply – until now limited – is beginning to outstrip demand as thousands of units that began construction in 2004/5 are beginning to be completed. A rising population – one million currently and growing – will account for many units but it would seem a cooling market is just around the corner. Not that that will worry ‘lifestyle’ purchases – a slowdown in demand means cheaper property prices.

Currently, ‘entry level’ apartments can be bought for around £35,000; villas for £80,000. At Dubailand, which will be the world’s biggest theme park with 45 different projects plus 8,000 properties, prices start from $55,000 (£28,000). In the new Sports City development (scheduled for completion in 2008), prices range from $100,000 (£51,000) up to $500,000 (£252,000).

At the other end of the spectrum, footballers David Beckham and Michael Owen are said to have bought million-pound-plus places on the Palms, where prices range from $10 million (£5.1m) to $38 million (£19.2m).

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