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Middle East Property - Dubai

It was the king of Dubai, Sheikh Mohammed bin Rashid al-Maktoum, who first put the long overdue “wow” factor into the Arabian Gulf.

Government-backed developers Nakheel and Emaar have helped transform his “vision” (he originally sketched Nakheel’s Palm Jumeirah in the shape of a big donut) into a city of awe-inspiring proportions.

Over 6.5 million tourists travelled to the emirate in 2006, but within the next two years 15 million visitors are projected, while permanent residents are set to hit 4 million. So it’s not hard to see why the government, and Dubai’s major developers, are preparing for this influx at groundbreaking speed.

A second airport for Dubai will open later this year and promises six runways. And to cope with expected demand for high quality real estate, Nakheel has added 1,000km of prime shoreline properties to Dubai’s natural beachfront, which already stretched 70km.

Residents of Emaar’s $20bn Downtown Burj Dubai development will jaw-drop at the sight of the “world’s tallest tower” on their doorstep – the Burj Dubai (pictured in construction on the outside edge of the opposite page). Their 160-storey neighbour is also within reach of the main financial districts.

Damac, which already has 79 towers in Dubai in total, has unveiled its latest offering, The Madison Residence. This luxury Manhattan-style community will be located inside Dubailand and close to the new Jebel Ali airport.

Down at Dubai Creek, developer Sama Dubai is underway with The Lagoons, an $18bn mini city dubbed the largest project of the 21st century”, spanning 6.5m sq/m.

Trident International Holdings has scooped the “best property in the world” award from CNBC for its luxury Pentominium Tower, where residents occupy an entire floor inside this 516m-high megastructure.

Uber-wealthy buyers will be surrounded with luxury brands, such as the Davidoff Cigar Bar, Sixth Sense Spas, Rolls Royce taxis, Azimut Yachts and Bang & Olufsen gadgets.

Real estate specialist My Dream Property says it’s the “optimum” time to buy. And more sources than ever agree. “Huge investments are coming from Britain, Russia and continental Europe,” says the comapny’s CEO Marwan Al Ali. “Even at the current prices in Dubai, properties are still more affordable and more evenly priced than these nations.”

Examples of more affordable property include a fractional ownership scheme at the Kingdom of Sheba resort on the Palm Jumeirah. Owners get a 14-day luxury stay at the Fairmont Heritage Place private residence club, developed by the highly respected IFA Hotels & Resorts.

Square mile has also come across young City buyers who would rather jointly invest in family villas at Jumeirah Golf Estates, where golfing ace Greg Norman’s course is, than buy cheaper property separately.

Shaikh Holdings is developing Sanctuary Falls, a collection of resort-style family villas within Jumeirah Golf Estates, and says 50% sold within 48 hours of launch. Nakheel says demand for villas outweighs supply.

The government doesn’t want drastic price inflation though, so major developers are upping their prices a few hours after launch to prevent “flippers” from buying in bulk and selling soon after. Rents have been voluntary capped, too, which should control the market.

Dennis Phillips, at Phillips International Lawyers, also points out a new law that makes the Dubai market an even safer prospect. “The government’s new ‘escrow law’ means money paid by you towards your property will be deposited in a special bank account opened under the name of the property development. This will only be released to the developer once key stages have been reached.”

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