Real estate/construction industry in Dubai:
The government's decision to diversify from a trade-based but oil-reliant economy to one that is service- and tourism-oriented resulted in the property boom from 2004–2008.Construction on a large scale has turned Dubai into one of the fastest-growing cities in the world.
The property boom is largely driven by megaprojects such as the off-shore Palm Islands and The World, and the inland Dubai Marina, Burj Khalifa complex, Dubai Waterfront,Business Bay, Dubailand and Jumeirah Village.
The Jumeirah Palm, the world's largest man-made island.
Dubai is home to skyscrapers such as Emirates Towers, which are the 12th and 24th tallest buildings in the world, and the Burj-al-Arab hotel, located on its own island in the Persian Gulf and currently the world's tallest and most expensive hotel.
Emaar Properties constructed what was at the time the world's tallest structure, the Burj Khalifa. The height of the skyscraper is 828 m (2,717 ft) tall, with 160 floors. Adjacent to Burj Khalifa is the Dubai Mall, which at the time of construction was the world's largest shopping mall.
Also under construction is what is planned to become Dubai's new central business district, named Business Bay. The project, when completed, will feature 500 skyscrapers built around an artificial extension of the existing Dubai Creek.
In February 2005, the construction of Dubai Waterfront was announced, it will be 2½ times the size of Washington, D.C., roughly seven times the size of the island of Manhattan. Dubai Waterfront will be a mix of canals and islands full of hotels and residential areas that will add 800 km (500 mi) of man-made waterfront. It will also contain Al Burj, another one of the tallest buildings in the world.
Dubai has also launched Dubiotech. This is a new business park to be targeted at biotechnology companies working in pharmaceuticals, medical fields, genetic research andbiodefense.
One of Dubai's plans in 2006 was for a 30-story, 200 apartment skyscraper that will slowly rotate at its base, making a 360 degree revolution once a week. The world's first rotating skyscraper was to be in the center of the Dubailand complex.
The International Media Production Zone is a project targeted at creating a hub for printers, publishers, media production companies, and related industry segments. Launched in 2003, the project was scheduled to be completed in 2006.
In May 2006 the Bawadi was announced, with a planned 27 billion US-dollar investment intended to increase Dubai's number of hotel rooms by 29,000, doubling it from the current figure offers now. The largest complex was to be called "Asia, Asia" and was planned to be the largest hotel in the world with more than 6,500 rooms.
The first villa freehold properties that were occupied by non-UAE nationals were The Meadows, The Springs, and The Lakes (high-end neighbourhoods designed by Emaar Properties, collectively called Emirates Hills).
Expatriates of various nationalities brought capital into Dubai in the early 2000s. Iranian expatriates were estimated to have invested up to $200 billion in Dubai. From 2005 to 2009, trade between Dubai and Iran tripled to $12 billion.
Dubai nationals have also purchased real estate in New York and London. Purchases in 2005 included New York's 230 Park Avenue (formerly known as the New York Central Building or the Helmsley Building) and Essex House on Central Park South.
The Dubai property boom of the mid-2000s peaked in 2008 and plummeted in a wave of activity which saw large scale projects, including partially completed properties, abandoned. Many developers went to the wall, while others, including those with government backing, entered into debt-restructuring deals with their lenders. By 2012 the market began picking up steam again. 2013 was a stellar year with prices accelerating significantly, however the government and industry players began putting in place measures that would safeguard against another bubble developing. One notable difference is the number of cash buyers compared to those in previous years that borrowed heavily. Part of the reason for the current cash surge is the influx of investment from troubled countries.
In September 2013, the Dubai Land Department increased property transfer fees from 2 to 4%. In early 2014 the government regulator imposed restrictions on outside-companies acquiring real estate in the emirate, insisting such companies had to have a presence in Dubai, and had to be owned by a natural person or persons, and not by another company. The measures were largely seen as a means to dampen speculation in property prices.
Since 2000, Dubai's municipality has initiated construction phases in the city, predominantly in the Mina Seyahi area, located further from Jumeirah, towards Jebel Ali. Dubai construction companies employ low-wage labourers from the Asian subcontinent for up to 12 hours a day, six or seven days a week.
In 2002 a change was made to the law allowing non-nationals of the UAE to own property (not land) in Dubai as fee simple, and 99-year leases are sold to people with ownership remaining with private companies. Property companies include Nakheel Properties and Emaar Properties. Rent rises were capped at 7% per annum up to 2007 under a directive from Mohammed bin Rashid Al Maktoum. Legislation in this area is still developing as the property market for foreigners is relatively new.
The City Of Wonders
With an outpour of almost 800 immigrants per day, Dubai – the most populated and the second largest of the seven emirates in the UAE based on land area – is considered to be the fastest growing global hub for economy, technology and infrastructure.
The Maktoum family has maintained their rule over Dubai since 1833, and continues to govern the Emirate after the formation of the United Arab Emirates in 1971. Inspired by the vision and guidance of H.H Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the Emirate has seen phenomenal growth since its formation.
Home to the popular man-made wonders (largest man-made islands) such as The Palm and The World; the world's tallest free-standing structure, the Burj Dubai; the first 7-star hotel, the Burj Al Arab; the largest mall; the richest horse race in the world; the fastest growing airline; the largest man-made harbour and free zone as well as the largest tourism development, Dubai is also regarded as the regional base for Fortune 500 companies today. Dubai has the world watching with its innovative real estate projects, sports events and numerous exhibitions attracting participants from all over the world.
Although strategically located with an abundant reserve of petroleum and natural resources, revenues from oil refineries contribute to less than 3 per cent of Dubai's USD 46 billion economy. More dominant business sectors in the Emirate are those from the Jebel Ali Free Zone Authority; however, Dubai is rapidly easing into tourism and other service businesses to account for their equally rapid economic development.
For sports lovers, Dubai is 'the' place. The richest horse race in the world, USD 6 million Dubai World Cup; the Dubai Desert Classic Golf Tournament; the International Power Boat Racing, the Dubai Rugby Sevens and the Dubai Tennis Open are some of the prime sporting events held annually in Dubai.
Over 45 mega projects are currently underway in Dubai, including Dubailand, the world's largest Disneyland styled theme park; Hydropolis, the world's first luxury underwater hotel; Dubai Sports City, the world's premiere sporting centre and Burj Dubai, the world's tallest building and tallest man made structure upon completion.
Shopaholics and unlike love Dubai for the diversity it offers when it comes to the fascinating souks, signature boutiques, flamboyant shopping malls and value outlets. To celebrate shopping are two festivals held annually: the world renowned Dubai Shopping Festival (January – February) that now attracts more than 3 million visitors and the Dubai Summer Surprises launched in 1998.
One of the world's most admirable international success stories, Dubai is strategically located at the crossroads of Europe, Asia and Africa. With an excellent network of over 120 shipping lines and 105 airlines connecting to over 145 global destinations worldwide, Dubai had made its mark on the international arena. With a GDP of over $30 billion and a growth of 12% CAGR in just four years, the Emirate has been growing by leaps and bounds. Boasting of a per capita tax-free income of over USD 20,000, amongst the highest in the world; the Emirate also offers an excellent business-friendly environment, free from taxes and foreign exchange controls.