Dubai is a city-state in the United Arab Emirates (UAE), located within the emirate of the same name. It is one of the seven emirates that constitute the United Arab Emirates. Located southeast of the Persian Gulf on the Arabian Peninsula, the emirate of Dubai has the largest population in the UAE (2,106,177) and the second largest land territory by area (4,114 km. sq.) after Abu Dhabi. Abu Dhabi is the Capital of the UAE. However, Dubai and Abu Dhabi are the only two emirates among five others who have veto power over critical matters of national importance in the country’s legislature.
Brief History of Dubai-
Four centuries ago, just a vast expanse of desert inhabited what today is known as Dubai.By the end of the 18th century, a handful of people had settled there to form the Dubai town and engaged in pearl trading, thus establishing the pearling industry. The population was about 800 then. By the early 19th century, members of the Bani Yas clan established Dubai, which remained dependent on Abu Dhabi till 1833.Dubai came under the protection of the United Kingdom by the “Exclusive Agreement” of 1892. The Emir of Dubai, meanwhile, tried to develop the business of Dubai by making foreign trades and decreasing the taxes, thus expanding and making Dubai and Dubai Creek the Trading Hub.
Economic Development and Establishment of Real Estate-
The late Sheikh Rashid bin Saeed Al Maktoum has the greatest influence and role in the establishment of Dubai as the Trade Hub it is today. In 1905, he dredged the Dubai Creek, a natural harbor, and significantly expanded its capacity. This facilitated the first Dubai Construction Boom in the 1960s. Eventually, the Sheikh made other visionary projects such as the great Ali Jebel port, the Dubai International Trade Centre and the Dubai Dry Docks. The three projects played the key role in the development of Dubai. During the 1990s, Dubai was greatly involved in a huge number of construction projects. One example of the great works during the late 1990s was the beautiful 7-star hotel, the Burj Al Arab.
The Most Significant Moment in Dubai’s Real Estate Business-
May 2002 changed the course of Real Estate of Dubai. Until May 2002, according to the law of the then Dubai, only the citizens of Dubai could own the property of the land on which their houses stood. However, in May 2002, the crown prince general of Dubai, Sheikh Mohammed bin Rashid Al Maktoum issued a decree which allowed foreigners to buy property freehold. This changed the course of Real Estate of Dubai forever. The construction process boomed. Hugh number of infrastructures were constructed and sold like fresh hot cakes to locals as well as foreigners.
Private developers, both local and international bought land for construction. Some of the other significant developments after the 2002 decree were The Palm, Jumeirah, the Springs, etc.
The Stand Still of the Dubai Real Estate Market-
With the onset of the financial crisis of 2007-2010, Dubai’s real estate market declined after enjoying an uninterrupted boom since 2002. This was one of the most challenging times for Dubai’s Real Estate Market. Thousands of employees from Dubai’s significant Real Estate Companies were sacked throughout the world. By 2009, Dubai’s leading Real Estate Company, the Dubai World had debts of 59 billion US Dollars. The cost of infrastructures and the cost of shares started declining consistently.
The Present Real Estate Market of Dubai-
After a remarkable recovery in 2012, the real estate of Dubai is set for bigger and better performance in 2013. With many huge projects planned for the present year and large supply of residential and corporate units to serve the increasing interests of investors, Dubai has already started showing signs of healthy growth.
For instance, a 16.5% hike has been noted in average rents in Dubai apartments during the first two months. Hence, real estate in dubai all set for a healthy growth and success.