Uae in for a ‘golden year’

The UAE will become the most popular emerging country for investment in 2008, according to a new survey…

With annual tourist numbers across the UAE expected to reach 14million by 2015¹ the country is set to see worldwide interest from property investors.   In response, the Homebuyer and Property Investor Show (7-9 March, ExCel, London) will feature an ‘Invest in Arabia and Morocco zone’ for the first time. 

The area will feature specialist exhibitors, as well as companies which include the areas in their expertise .  This new part of the show is as a result of increased interest and enquiries over the last two years from UK investors looking to make their first purchase or expand their portfolios in the UAE. 

Dubai is a well established market with capital appreciation increasing by up to 25% annually, but demand for properties is set to rise further and opportunities to capitalise on the growth of the country are still plentiful.

Global appeal

Saeed Al Qatami, Managing Director at Deyaar, one of the UAE’s leading real estate developers, said: “Dubai is the financial, business and tourism capital of the region, and has attracted investors from across the globe due to its potential for significant rental yields and the price appreciation of freehold properties”.

While Dubai is perhaps the best known of the seven United Arab Emirate states, there are others which offer excellent investment opportunities, which are as yet relatively untapped. For example, Ajman, the smallest member of the UAE, which was once a small fishing village, is developing fast.

In December 2007, it was announced that an international airport will be built in Ajman, with construction to start in the second half of this year and to be completed in 2011.  Following the announcement, properties have been snapped up for way over the asking price and experts predict that this trend is set to continue with prices expected to rise between 15% and 20% per annum over the next five years. 

One of the first developments of New Ajman, the name given to the area being developed outside of the capital, Ajman City, is ‘The Emirates City’, and will consist of more than 100 mid- and high-rise buildings.

Ajman – cheaper than Dubai

Mark Woods, Business Development Manager of Key4International, comments: “Ajman benefits from similar tax incentives as Dubai, but the cost of properties is much less. This in turn has attracted a huge number of investors, both local and international. 

“The new airport will certainly be attractive to tourists and business travellers. However, until that is completed, the emirate can be easily accessed from Dubai International Airport.  There is also a local market; many local workers in Dubai cannot afford to rent there. So Ajman offers an alternative in terms of cost and location.    

“Prices in Ajman are significantly lower than that in Dubai, making it an excellent investment opportunity, likely to benefit from the ripple effect from Dubai. An 805 square foot property costs, on average, £45,000, while a property half the size in Dubai Marina starts at £90,000.”