Dubai has emerged as a wondrous world, offering a multitude of attractions, an inevitable sense of security and above all the overall ambience that triggers energy and excitement. It is no wonder why more and more people are opting to settle down in Dubai or to pay a visit to this culturally strong and hospitable part of the world.

Although considered as one of the most expensive cities of the world, Dubai still is a magnet that attracts rather compels people to take a bite of its suaveness.

The Initiation!
In 2001 Dubai Property Market changed. The government agreed to allow foreign investors and buyers to take 99-year leases on apartment and villa property in Dubai. At the time when this law was passed in 2001 the population was close to 1 million people. In May of 2002, the crown prince of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, stated that Dubai would allow foreign investors to buy Dubai properties on freehold ownership. The statement just jumpstarted the market and it has been booming ever since.


Now during last three years Dubai has emerged as the ultimate destination for international and local property investors. The boom was triggered by the ‘freehold property scheme’, unveiled in 2003 by Dubai government, allowing foreigners to own property for life, with the right to sell, lease or rent it at their own will. Along with this, the increase in population, flourishing tourism and readily available mortgage facilities from banks and financial institutions have given vent to an extraordinary real estate boom in Dubai. Real estate projects of almost $30 billion are currently under development in Dubai.

Since the new laws were passed, capital growth in Dubai has been on the up and capital growth that exceeds 20% is expected as Dubai continues to nurture its attraction to be the NO1 tourist and leisure country. This coupled with achievable 8% rental income return; it is clear why Dubai is considered one of the top investment property hot spots in marketplace.

The Law
In the case of Dubai and the UAE, property law is very young and still taking its long-term shape, although the key elements are straightforward to understand. The Law No. 7 that legalizes freehold ownership of land and property for UAE and GCC citizens, while allowing the same rights to non-GCC expatriates to pre-designated areas that will be approved by the Ruler of Dubai.

Non-GCC expatriates will be given the right to acquire freehold and 99-year lease property, in areas designated by the Ruler. The law comes almost four years after the government first announced freehold ownership to expatriates, grouped under three Dubai-government owned entities Emaar Properties, Nakheel and Dubai Properties.  The new property law entitles the investors and buyers to the following clauses:

Summary
* The foreigners will have the right to lease or purchase the land, after getting approval from the three master-developers, Emaar, Al Nakheel, and Dubai Properties.

* A land will be registered in the name of a foreigner only after the developers submit a no-objection letter, stating that all the payments for the transaction have been made in full.

* There are three kinds of ownership proposed in the legislation: freehold, usufruct, and common hold. The owner will have complete ownership rights over a free hold property and the building in this case will be in the owner's name.

 * The second category is usufruct or long-term lease. The law characterizes 'usufruct' as the right to use another's property short of destruction or waste of its substance. The right of usufruct, as per the law, should not be for less than five years. This will most probably be a long-term lease whose maximum validity period will range from anywhere between 50 to 99 years

 * Common-hold allows leaseholders to dispense with their landlord and obtain a share of the freehold.

* The registration fee for the transaction will be two per cent of the total value of the property, of which 1.5 per cent has to be paid by the purchaser and the rest by the seller. After the payment of the whole amount, the owner is free to either bequeath the property or sell it.

* The most important and probably extremely consequential component of the law is the clause that those who already purchased property will have to legalize their purchase by registering it with the authorities.  Another important feature of the law is the recognition of the land development lease.

* The confidence of the investors and buyers as the new Dubai property law ascertains on them the 100% foreign ownership for the expatriates. More banks will begin the facility of home finance as there is a guarantee in the ownership of the properties.

* The law also specifies the functions and responsibilities of the Department of Land and Property, which has so far been doing all the work by virtue of practice, sans legal clarity. As per the law, the department will determine the survey areas; approve the land map and the fees for the services provided by the department.

Excerpt from Law No.7 of 2006

Article No.3
Provisions of this law are applied to properties located in Dubai.

Article No.4
The right to own properties within the Emirate shall be limited to UAE and GCC citizens, to the companies wholly owned by them, as well as to the public stock companies. Pursuant to the Ruler’s consent, non-UAE nationals may be granted the following rights in designated areas:

a) Freehold ownership of the property for an unlimited period;
b) Usufruct over the Property or 99-year lease thereof.

Article No.5
The original documents and judicial rulings upon which properties are registered are to be kept at the Lands and Properties Department.

It bans the removal of documents from the department. Judicial bodies or any expert or committees assigned are authorized to review the documents and get attested copies.

Article No.6
The Lands Department is solely assigned to register property rights and long-term leasing contracts as stipulated in Article No.4 of this law.

Under the law, the department will carry out the following duties:

1- Specifying survey areas or re-con­ducting surveys and attesting location maps.
2- Specifying rules related survey and releasing maps related to property units.
3- Preparing model property contracts.
4- Setting rules related to regulating, keeping and destroying documents.
5- Setting rules related to the use of Computer in data entry and saving.
6- Setting rules related to the regulation and keeping the records of property brokers.
7- Setting rules related to the assessment of properties.
8- Setting rules related to the sale of properties in auctions, and supervising the auctions.
9- Fixing fees for services offered by the department.
10- Setting up branches of the depart­ment upon the director’s discretion.

Article No.7
A property register at the Dubai Lands and Properties Department shall be set up for documenting property rights and their amendments. Its records hold the ultimate evidence against all without exceptions. Its records cannot be challenged except in the case of forgery.

Article No.8
Documents of the property register which are electronically saved, have the same evidential value of the original documents.

Article No.9
All property transactions and deals that result in giving, moving, changing or removing property rights, must be registered with the property register. And so must all the final rulings that prove such dealings, which are not considered valid until they are registered.

Article No.10
To undertake transferring any property rights is limited to the contractor’s commitment to the guarantee if he defaulted on his contractual duties whether compensation was stipulated in the undertaking or not. FEATURES

Article No.11
The inheritance notification must be registered with the property register, in case heirs have property rights within their inheritance. And, no dealings will be admitted unless registered.

Article No.12
The department has the authority to look into applications submitted by owners of unregistered lands seeking to settle their legal status.

Article No.13
The department can correct purely financial errors in the property register upon a request by applicants or on its own, with informing concerned parties.

Article No.14
The department coordinates updating property data with parties concerned.

Article No.15
The registration of property areas and units at the property register must be based on typographic, property unit and property area maps. It also reads that each property area must have an independent map, manifesting all property units in the area and their numbers.

Each property unit must also have a separate map, showing its location, boundaries, length, area and buildings, and the numbers of neighboring units.

The law also stipulates that any amendment to the property unit, whether by dividing or merging units must be registered with the property register.

The department issues ownership certificates regarding property rights, which are considered ultimate evidence to prove property rights.

The above-mentioned certificates must include any terms, conditions, undertakings or any other commitments.

The provisions of federal civil transactions law No.5 of 1985 and its amendments are still valid in the cases not stipulated by this law.

Any agreement or deal concluded in violation of this law is invalid. Any person, department or public prosecution has the right to contest such a deal.

This law abrogates the provisions of the decree concerning legal and penal suites related to land transactions in Dubai, dated November 6, 1997

The Chairman of the department issues the necessary regulations and rules to put this law into effect.

The law shall be published in the official gazette, and is to be taken into force from the date of its issuance.

Article No.22
The Department shall issue title deeds of Real Property Rights in accordance with the current records in the Real Property Register.

Article No.23
Subject to the provisions of any other law, a multi floor or apartment real property shall be considered as a single Real Property Unit and a folio shall be designated thereto in the Real Property Register. Supplementary folios in the names of the owners of such apartments and floors and common areas shall be added to the original folio.

Article No.24
(1) Title deeds referred to under Article 22 of this Law shall have absolute power of evidence to establish Real Property Rights.

(2) Any conditions, undertakings, encumbrances or any other liabilities related to Real Property Rights shall be stated in the designated folio of the Real Property Unit.

Article No.26
(1)Any agreement or disposal made in violation to the provisions of this law or with the intent to circumvent its provision shall be null and void.

(2) Gives any interested third party, the Land Department and the Public Prosecution he right to request the court to declare such a transaction void. This is aimed at so called ‘sham arrangements’.

Article No.27
Law specifically repeals a Decree dated 6th November 1977. That 1977 Decree prevented any property-related disputes from being filed at court unless the case was referred to it by the Land Department. Now that Decree has been repealed, any aggrieved party can now file a claim direct with the Dubai courts or implement any agreed arbitration process.

If you're looking to make some money, consider investing in real estate. According to the National Association of Realtors, 23 percent of all homes purchased in 2004 were acquired as investment properties. But real estate mogul and "Good Morning America" contributor Barbara Corcoran has one of the sharpest eyes in the field. Here are her picks for the Top 5 hottest areas across the country.

What makes it great: If you want a big house for a small price, go to Enid. Nationwide, the average home price is $216,000. In Enid, you can pay less than half of that for a nice, spacious house. The town is experiencing a business boom — in the last three years, private business has brought in 900 new jobs. The downtown area has recently been rebuilt, and lots of wealthy families from Austin, Texas, and Houston have moved there for the small-town charm.

What you can learn: Look for an upturn in rental prices. If they're going up, then that means people are moving there because they have jobs and they're renting first and then buying. So, you should buy now.

South Bronx, N.Y.

Average home: $380,000

What makes it great: The South Bronx is the last housing frontier close to New York City. It lost 57 percent of its population in the 1970s; now people are coming back. Public money is flowing in, and developers are really starting to lay their bets. Most importantly, it's attracting creative energy — artists and musicians are moving there — which can really revitalize an area.

What you can learn: Here are three tips from the South Bronx that apply to any depressed area. One, track the number of classified ads selling property each week. They should double every month. Second, assess an area at night. A night life — like clubs and cafes — is a good sign that a neighborhood is on the rise. Third, look for the price of a cup of coffee to rise. Up-and-coming neighborhoods draw expensive coffee sellers.

Sitka, Alaska

Average home: $331,000

What makes it great: Sitka's scenery is breathtaking — you can actually see whales from the town's boardwalks. It also offers charming houses, some of the cleanest air and water in Alaska, and great health-care facilities. The town has a terrific vibe and offers a great mix of people — young families and retirees.

What you can learn: The tip here is all about land. Sitka is an island, and only 5 percent of its land can be developed. Most of it has been built on already. So, real estate is a scarce commodity that's only going to become more valuable. Looking for similar situations in other areas is a good strategy.

Jacksonville, Fla.

Average home: $166,000

What makes it great: One of the last affordable markets left in Florida, Jacksonville is really gaining momentum. The city is split by a river and surrounded by the ocean, so there is a waterfront on three sides and miles of beach. Check out the Springfield neighborhood. It used to be called "Pornshop Row." Now it's a hub of arts and culture.

What you can learn: Go dump-hunting: Go to an undesirable area that's next to a prestigious area. Soon, the neighborhoods' lines will get blurred.

Oxford, Miss.

Average home: $214,000

What makes it great: Cheap but chic, Oxford is full of university-town charm and Southern graciousness. It's still quaint enough to be considered a small town, but it's distinguished enough to become a vacation destination. Mississippi is about 10 percent cheaper than the rest of the country, so your dollar goes further.

What you can learn: Oxford is one of the Top 3 places where wealthy people from New Orleans moved after Hurricane Katrina. Anytime there's been a mass migration like that, a real estate boom is bound to follow.

Another tip: When vacant lots start selling like hot cakes, the market is ready to take off.

by Barbara Corcoran

Looking for a new real estate opportunity? While most markets are crumbling, the island of Grand Cayman is enjoying quite a boom. The combination of a thriving financial services industry and buoyant tourism led prices 10% higher last year, according to Kim Lund, owner of ReMax Cayman Islands, and should push values up another 15% to 20% this year.

Don't, however, expect any bargains. The Ritz-Carlton, for example, is offering two-bedroom condos starting at $2.9 million. If that seems high to you for a Caribbean island, you're not alone.

In fairness, Mr. Lund points out that the Ritz-Carlton properties are on the island's most prestigious shore, known as Seven Mile Beach, and they offer the high-end amenities available at the Ritz's 365-room luxury resort next door. They are also a favorite destination of the hedge fund types who frequent the place.

Grand Cayman, the largest of the three Cayman Islands, has emerged as one of the top five financial centers in the world — no small achievement for a spit of land measuring only 22 by 8 miles, and for a place nearly obliterated by Hurricane Ivan in 2004. A local realtor, Donnita Moist, recalls, "85% of all the structures of the island were destroyed. It was a Category 5 hurricane, and it sat on us for three days. It was very traumatic."

Ironically, the storm undoubtedly helped pave the way for the current real estate boom. "We had a billion-dollar face-lift," said Mr. Lund. "Nearly everything was covered by insurance."Indeed, the island has been substantially rebuilt. In its refurbishment Cayman ended up with state-of-the-art communications capabilities, luxury resorts and condos, and spruced-up roads and airports. A broker for a leading development firm, Butler Properties, Douglas Sell, adds that the most significant addition to the island in the storm's aftermath was the $500 million Ritz-Carlton, which has attracted deep-pocket travelers from all over the world.



Over the past decade, though, a more profound makeover has been taking place. Once reputed to be a choice spot for money laundering, Cayman (not "the Caymans") has instituted world-class banking regulations and oversight to prevent fraud and criminal activities. A positive review of these measures by the IMF is proudly quoted on the government's Web site.

The result is that over 40 of the world's top 50 banks are registered in Cayman, with assets estimated at $1.6 trillion, as well as more than 7,000 mutual funds, 800 insurance companies, and over 60% of the world's hedge funds. A thriving professional population has arrived, boosting real estate values.

The attractions are simple. Cayman is a British Overseas Territory, pretty much guaranteeing the islands' stability and rule of law. The population is a mix of peoples from Britain, Scotland, and Africa, who appear to be extremely pleased with the status quo. "No one here is interested in independence," said Mr. Gund.

English is the official language in Cayman, Miami is only 480 miles north, and the average temperature is 75 degrees during the winter (giving Cayman a distinct advantage over the Channel Islands, for example, or Luxembourg). Also, island residents boast that Cayman is safe; there is little crime of any kind.

More important, the government of Cayman has worked to attract business. The territory describes itself as tax-neutral; it collects no corporation tax, capital gains tax, or property tax. Instead, revenues come from a stamp tax assessed on property purchases, various fees levied on registered corporations, and monies collected from the large number of cruise ships that visit the island each year. Also, regulation is meant to be sufficient to prevent illegal activities, but relaxed enough to allow easy start-up of new businesses. Currencies are freely imported and exchanged, and the government guarantees confidentiality of client information. Confidentiality is only breached when there is evidence of criminal activity.The accommodating business climate and the success of the local stock market (CSX), begun in 1997, translate into a continuing inflow of new financial products, such as structured finance. The Cayman government cites FactSet data showing that structured finance transactions in the Cayman Islands tripled from 837 in 2003 to 2,512 in 2006. Of the 1,250 listings on the CSX, over 25% are securitized debt offerings.

Of course, it is more than finance that drives the economy of Cayman. Tourism is still the no. 1 business, accounting for some 70% of GDP. Other than the weather and the natural beauty of the island's beaches, Cayman is also known for its superb scuba diving and snorkeling.

Like many tourist destinations, Cayman was hard hit by the onetwo punch of the dot-com recession in 2000 and then the terrorist attacks of September 11, 2001. The economy was just recovering when Ivan knocked the islands flat. The past two years have seen a remarkable recovery. Ms. Moist said "People here are very resilient. They started to clean up and rebuild right away."



Butler Properties has been in the forefront of the rebuilding effort, and currently has three luxury condominium projects under way, which are selling out fast. Caymanians have learned that units acquired during the "prebuild" selling period usually turn a nice profit, so some 25% of the units under contract are probably speculative, according to the aptly named Mr. Sell. Also encouraging early purchase (and possible flipping) is the government's 7% stamp tax, which is paid only at closing. Nonetheless, the firm's 41-unit Beachcomber property, which should be completed in November 2008, has only 4 units remaining despite prices of around $2 million per unit.

Which, in the dead of winter, begins to seem more and more reasonable. (by Liz Peek)

‘As your jet starts its descent, you are glued to your window. The scene below is astonishing: a 24-square-mile archipelago of coral-coloured islands in the shape of an almost-finished puzzle of the world. In the shallow green waters between continents, the sunken shapes of the Pyramids of Giza and the Roman Colosseum are clearly visible. In the distance, three other large island groups are configured as palms within crescents and planted with high-rise resorts, amusement parks and a thousand mansions built on stilts over the water. The ‘Palms’ are connected by causeways to a Miami-like beachfront crammed with mega-hotels, apartment skyscrapers and yachting marinas.


‘As the plane slowly banks toward the desert mainland, you gasp at the even more improbable vision ahead. Out of a chrome forest of skyscrapers soars a new Tower of Babel. It is an impossible half-mile high: taller than the Empire State Building stacked on top of itself. You are still rubbing your eyes with wonderment as the plane lands and you are welcomed into an airport shopping emporium where seductive goods entice: Gucci bags, Cartier watches and one-kilogram bars of solid gold. The hotel driver is waiting for you in a Rolls Royce Silver Seraph. Friends had recommended the Armani Inn in the 170-storey tower, or the 7-star hotel with an atrium so huge that the Statue of Liberty would fit inside it, and service so exclusive that the rooms come with personal butlers; but instead you have opted to fulfill a childhood fantasy. You always have wanted to play Captain Nemo in Twenty Thousand Leagues Under the Sea.

‘Your jellyfish-shaped hotel, the Hydropolis, is, in fact, exactly 66 feet below the surface of the sea. Each of its 220 luxury suites has clear plexiglass walls that provide spectacular views of passing mermaids and of the famed ‘underwater fireworks’: a hallucinatory exhibition of ‘water bubbles, swirled sand and carefully deployed lighting’. Any initial anxiety about the safety of your sea-bottom resort is dispelled by the smiling concierge. The structure has a multi-level fail-safe security system which includes protection against terrorist submarines as well as missiles and aircraft.

‘Although you have an important business meeting at Internet City with clients from Hyderabad and Taipei, you have arrived a day early to treat yourself to one of the famed adventures at the ‘Restless Planet’ themepark. After a soothing night’s sleep under the sea, you board a monorail for this Jurassic jungle. Your first encounter is with some peacefully grazing brontosaurs. Next you are attacked by a flock of velociraptors, the animatronic beasts—designed by experts from the British Natural History Museum—so flawlessly lifelike that you shriek in fear and delight. With your adrenaline pumped up by this close call, you round off the afternoon with some snowboarding on the local indoor snow mountain (outdoors, the temperature is 105°). Nearby is the world’s largest mall—the altar of the city’s famed Shopping Festival, which attracts millions of frenetic consumers each January—but you postpone the temptation. Instead, you indulge in some expensive Thai fusion cuisine. The gorgeous Russian blonde at the restaurant bar stares at you with vampirish hunger, and you wonder whether the local sin is as extravagant as the shopping . . . ’

Fantasy levitated

Welcome to a strange paradise. But where are you? Is this a new Margaret Atwood novel, Philip K. Dick’s unpublished sequel to Blade Runner or Donald Trump on acid? No. It is the Persian Gulf city-state of Dubai in 2010. After Shanghai (current population 15 million), Dubai (current population 1.5 million) is the planet’s biggest building site: an emerging dreamworld of conspicuous consumption and what the locals boast as ‘supreme lifestyles’. Despite its blast-furnace climate (on typical 120° summer days, the swankier hotels refrigerate their swimming pools) and edge-of-the-war-zone location, Dubai confidently predicts that its enchanted forest of 600 skyscrapers and malls will attract 15 million overseas visitors a year by 2010, three times as many as New York City. Emirates Airlines has placed a staggering $37-billion order for new Boeings and Airbuses to fly these tourists in and out of Dubai’s new global air hub, the vast Jebel Ali airport. [1] Indeed, thanks to a dying planet’s terminal addiction to Arabian oil, this former fishing village and smugglers’ cove proposes to become one of the world capitals of the 21st century. Favouring diamonds over rhinestones, Dubai has already surpassed that other desert arcade of capitalist desire, Las Vegas, both in sheer scale of spectacle and the profligate consumption of water and power.

Dozens of outlandish mega-projects—including the artificial ‘island world’ (where Rod Stewart has reportedly spent $33 million to buy ‘Britain’), the earth’s tallest building (Burj Dubai, designed by Skidmore, Owings & Merrill), the underwater luxury hotel, the carnivorous dinosaurs, the domed ski resort and the hyper-mall—are already under construction or about to leave the drawing board. [3] The 7-star hotel, the spinnaker-shaped Burj Al-Arab—looking much like the set of a James Bond film—is already world-famous for its $5,000 per-night rooms with 100-mile views and an exclusive clientele of Arab royalty, English rock stars and Russian billionaires. And the dinosaurs, according to the finance director of the Natural History Museum, ‘will have the full stamp of authority of the Museum in London, and will demonstrate that education and science can be fun’; and profitable, since the ‘only way into the dinosaur park will be through the shopping mall’.

The biggest project, Dubailand, represents a vertiginous new stage in fantasy environments. Literally a ‘themepark of themeparks’, it will be more than twice the size of Disney World and employ 300,000 workers who, in turn, will entertain 15 million visitors per year (each spending a minimum of $100 per day, not including accommodation). Like a surrealist encyclopaedia, its 45 major ‘world class’ projects include replicas of the Hanging Gardens of Babylon, the Taj Mahal and the Pyramids, [5] as well as a snow mountain with ski lifts and polar bears, a centre for ‘extreme sports’, a Nubian village, ‘Eco-Tourism World’, a vast Andalusian spa and wellness complex, golf courses, autodromes, race tracks, ‘Giants’ World’, ‘Fantasia’, the largest zoo in the Middle East, several new 5-star hotels, a modern art gallery and the Mall of Arabia.

Gigantism

Under the enlightened despotism of its Emir and ceo, 58-year-old Sheikh Mohammed al-Maktoum, Dubai has become the new global icon of imagineered urbanism. Multi-billionaire Sheikh Mo—as he is known to Dubai’s expats—has a straightforward if immodest goal: ‘I want to be Number One in the world’.  Although he is an ardent collector of thoroughbreds (the world’s largest stable) and super-yachts (the 525-foot-long ‘Project Platinum’, which has its own submarine and flight deck), his consuming passion is over-the-top, monumental architecture. [8] Indeed, he seems to have imprinted Scott and Venturi’s bible of hyper-reality, Learning From Las Vegas, in the same way that pious Muslims memorize the Qur’an. One of his proudest achievements, he often tells visitors, is to have introduced gated communities to Arabia, the land of nomads and tents.

Thanks to his boundless enthusiasm for concrete and steel, the coastal desert has become a huge circuit board upon which the elite of transnational engineering firms and retail developers are invited to plug in high-tech clusters, entertainment zones, artificial islands, glass-domed ‘snow mountains’, Truman Show suburbs, cities within cities—whatever is big enough to be seen from space and bursting with architectural steroids. The result is not a hybrid but an eerie chimera: a promiscuous coupling of all the cyclopean fantasies of Barnum, Eiffel, Disney, Spielberg, Jon Jerde, Steve Wynn and Skidmore, Owings & Merrill. Although compared variously to Las Vegas, Manhattan, Orlando, Monaco and Singapore, the sheikhdom is more like their collective summation and mythologization: a hallucinatory pastiche of the big, the bad and the ugly.

The same phantasmagoric but generic Lego blocks, of course, can be found in dozens of aspiring cities these days (including Dubai’s envious neighbours, the wealthy oil oases of Doha and Bahrain), [9] but al-Maktoum has a distinctive and inviolable criterion: everything must be ‘world class’, by which he means Number One in the Guinness Book of Records. Thus Dubai is building the world’s largest theme park, the biggest mall (and within it, the largest aquarium), the tallest building, the largest international airport, the biggest artificial island, the first sunken hotel and so on (see below). Although such architectural megalomania is eerily reminiscent of Albert Speer and his patron’s vision of imperial Berlin, it is not irrational. Having ‘learned from Las Vegas’, al-Maktoum understands that if Dubai wants to become the luxury-consumer paradise of the Middle East and South Asia (its officially defined ‘home market’ of 1.6 billion), it must ceaselessly strive for visual and environmental excess. If, as Rowan Moore has suggested, immense, psychotic assemblages of fantasy kitsch inspire vertigo, then al-Maktoum wants us to swoon.



by Mike Davis

Mention the United Arab Emirates these days and most likely your listeners think of Dubai, that glitzy upstart along the Gulf coast.

Yet north of the shiny new towers at Dubai Marina, Jumeirah Beach and dozens of other mega-projects, is a land - or actually, a series of lands - that only now are starting to draw the kind of interest from overseas investors that Dubai already enjoys.

"Drive up the coast from Dubai and it's like going back in time," said Michael Grant of Cluttons, an international real estate agency with offices throughout the region. "It all begins to look like Dubai did 20 years ago."

First along the Emirates Highway is Sharjah, a conservative, industrial emirate, that literally surrounds the more liberal Ajman. Farther on lies Umm al Qaiwain, with its small fishing port and laid-back atmosphere, while farther north still is Ras al Khaima, popularly called RAK, perched on the coast in front of the Hajar Mountains.

And, over on the Indian Ocean, lies Fujaira, as well as more of Sharjah - the only emirate that fronts both the Gulf and the Indian Ocean.

Now, with available space dwindling and prices jumping in Dubai, these lesser-known areas are experiencing a rush of new investment.

"We calculate Dubai showing a 103 percent commercial occupancy rate," said Nicholas Maclean,managing director in Dubai for the real estate company CB Richard Ellis. "The Dubai Financial Center, for example, has a waiting list for 200,000 square feet."

The results are evident. Sheik Zayed Road, going north from Dubai, is a growing traffic nightmare as some of the 2.6 million office workers and residents of the United Arab Emirates head north for larger and cheaper spaces.

"Ras al Khaima is around 25 to 30 percent cheaper than the other major emirates," said Izzat Dajani, chief executive of the RAK government's Investment and Development Office. "The cost of land, rents, living - it's all much cheaper, plus the quality of life is better. There are beautiful mountains, less traffic, good educational and health care facilities, all for much less cost - and all a 45-minute drive from Dubai."

Sharjah's nearness to Dubai has long made it a bedroom community and secondary office location for its flashier neighbor. "It has always been cheaper here, even though it's only a couple of kilometers up the road," said Lesley Preston, the Cluttons office chief in Sharjah. "Here A-grade office space rents for around 90 dirhams a square foot, while similar space in Dubai nowadays is around 250 dirhams a square foot."

Or roughly $24.50 to $68 a month.

"The problem here is supply," Preston said. "Demand has jumped so much in Sharjah in the last few years that you can't get office space even if you have the money."

With no letup in sight, "nowadays, you have to look beyond Sharjah too for desirable, out-of-town places," Grant said. RAK, he said, would be a good spot for a summer or weekend home.

"RAK Properties are developing a major beach master plan of hotels, villas and apartments," he said. It includes Julfa Towers, a 500 million dirham twin-tower development due for completion in June 2008. Some 60 percent of its apartments were sold for 490,000 dirhams to 990,000 dirhams before a brick was laid.

Nine beachfront hotels also are planned for some 100 million square feet, or 9.3 million square meters, of land that was given to RAK Properties by the emirate for development. RAK Properties is a publicly listed company but the government is a shareholder.

The plan also includes a marina, a welcome project for boat lovers. "I'm buying a boat myself," Grant said, "but there are no spare berths in Dubai. RAK is where I'll end up putting it."

The emirate also boasts the Cove, primarily a collection of hotels but there also are residential and commercial elements; the beachfront Al Hamra development of hotels, golf courses and villas, is now largely completed.

"The buyers come from all over," said Mohammed Sultan Al Qadi, managing director of RAK Properties. "Europeans, Indians, Americans. As a foreigner, you can buy here at our projects freehold."

That is an important point. In Sharjah, foreigners cannot buy land or property unless the Royal Court allows it and even then a resident must be part of the leasing arrangement; in Ajman, a 99-year renewable lease is available for specific projects.

But lawyers caution that the emirates' federal law still bars foreign ownership so, in case of a dispute, it is not clear which law would take precedence.

Some sector analysts also are cautious about future demand throughout the region.

"Much of the northern emirates depend on spinoff from Dubai and Abu Dhabi," Maclean said. "For example, at present there is some 26 million square feet of office space in Dubai, with most of it full, so people look elsewhere."

"But in the next five years, there will be 26 million square feet more coming on the market in Dubai, along with many more apartments and villas. Most people still want to be in Dubai, too, and it has a formidable PR machine for the other emirates to match," he said.

Instead of trying to go head-to-head with Dubai, the other emirates may have to carve niches of their own.

"It's about lifestyle," Dajani said. "We're not selling a villa or an apartment, but a different way of life. Up the coast you can get great beaches, mountains, good security, health care and educational facilities, there are no taxes and no traffic jams." ... by Jon Gorvett

Cyprus is fast becoming a property hotspot for thousands of British holiday home hunters disillusioned with the overdeveloped and overpriced Costas. Famous for its spectacular beaches, a climate that gives more sunshine days than Spain and its rich and varied history, Cyprus offers a perfect mix of foreign and familiar.

Whether you’re looking for a romantic mountain retreat or a villa by the sea, buying a property in Cyprus is a relatively uncomplicated process. Much of the paperwork involved in purchasing a property was simplified in the run up to EU membership and an English based financial and legal system means that the buying process is quite familiar to most British investors.

Many experts predict that the Cypriot pound’s replacement with the Euro in 2007, will stimulate a 50% rise in property prices so now is an excellent time to jump on the property ladder in Cyprus. But where are the best places to buy and just what type of properties are available?

Paphos is one of Cyprus’s most beautiful towns. Located on the south-western coast, the area is also one of the quietest and most peaceful coastal spots on the island. Though the last five years have seen more developers building in Paphos, the essence of the quaint fishing village that existed here before mass tourism remains in tact. Here you can expect to pay £59,000 for a one bedroom, fully furnished apartment. If you have £240,000 you could own your own villa on a 700 sqm plot with pool included. More and more golf developments are being built to cater to demand and a two-bedroom apartment on a golf complex is likely to cost in the region of £150,000 to £180,000.

Moving around the coast to Limassol, property can be picked up at prices 10-15% cheaper than in Paphos. This might be due to the fact that being the commercial and industrial centre of the South Coast, Limassol lacks much of the character and charm that small towns such as Paphos have. The missing seaside feel however doesn’t deter the British. Employment opportunities are far more plentiful here and this may explain why 20% of the British expat community live in Limassol. A three-bedroom villa in Limassol comes in between £180,000 to £200,000.

For those who want to avoid the tourist and expat enclaves, a trip into the Troodos Mountains will yield surprising results. The lush green hills and stunning scenery hide hundreds of small villages where the real Cyprus can still be experienced. Renovation projects are plentiful and one of the best ways to find out what’s on the market is to travel into the villages and ask the locals. Stone cottages in need of renovation sell for as little as £60,000 and can be restored for £30-40,000, meaning that a stunning mountain hideaway in Cyprus can cost as little as £100,000.

If you are the adventurous type, you might fancy building your own villa. While there will always be headaches where new builds are concerned, this approach can be significantly cheaper than buying off-plan. There is also much greater control over the type of property you end up living in and standards are likely to be higher. Designing and building your own villa means liasing with architects and builders. While your architect is likely to look after the administrative end with regard to permits and planning, it is always best to be close on hand during the building process. The alternative is to employ and individual or agent to look after this for you. Building your own villas is likely to be up to 40-50% cheaper than buying from property developers and you won’t pay extra for the granite floor or air conditioning!

Cyprus is definitely the one to watch. With EU membership, the country is enjoying an influx of funds that are helping to further develop the infrastructure. It is now possible to obtain mortgages in Cypriot pounds and interest rates are already falling and are likely to drop further when the currency enters the Eurozone! All this bodes good news for the Cypriot property market and for those who missed the property boat to Spain, now is the time to jump on board and cash in on the property boom on beautiful Cyprus. ... by Tracey Meagher

Property is cheap on an International level
Property is cheap in absolute and relative terms. For example at this moment, an average villa will cost around $1,000 per square metre in comparison to London Docklands where it would cost $5,000 per square metre. There are very few modern cities in the world where high-standard property is priced so low.

Foreign Ownership
Dubai is in the process of creating an international property market from scratch, with foreign ownership of freehold only introduced last year. Thus buyers are given an exceptionally good deal to encourage them to be pioneers.

Shortage of supply
The Dubai Government is working hard to prevent a shortage of supply and is giving land to developers as an incentive. What looks like massive supply today in Dubai may be nothing compared with demand in a few years time. Dubai is after all growing its GDP by 7-8% a year and shows no sign of slowing down, quite the contrary.

Rising Building Costs
A fundamental influence on property prices are rising building costs. The low US dollar is pushing up the cost of materials from Europe which is pushing energy prices to its peak.

Tax Free Income
Dubai is a city where a lot of people earn high tax-free salaries and are in a position to support higher house prices. This is a city with a 20-year track record of strong economic growth and will continue to attract foreign and regional inward investment.

International Business Centre
Long recognised as the leading regional trading hub of the Middle East, Dubai has now become an international business and re-export centre. The country has developed rapidly over the past 10 years and has transformed itself from an oil dependent regional entrepot into a highly diversified international business centre of global significance, which offers opportunities for UK business people in all sectors. At Present, over 500 UK companies have been set up in Dubai.

Tourism
Over 3.4 million tourists visited Dubai in 2001 and this figure is expected to grow to in excess of 6.0 million by 2010. Dubai is going from strength to strength.

Buy v Rent
Any long-term resident will pay out a fortune in rent, and that money is better invested in a property. In addition, it is presently up to 40% cheaper to buy than to rent, so buying a big villa costs the same as renting a small one. The 10% down payment on a new villa is the same as the upfront annual rent payment. Rental yields of up to 10% are achievable in Dubai compared to under 5% in Central London.

Returns for Investors
Properties are appreciating steadily at the rate of 10% - 15% per annum, (for some developments even greater). It is estimated that by 2009, based on current growth, your initial financial investment is expected to at least double.

Attractive Currency Rates
The local currency, AED (Dirham) is fixed with the US dollar (3.675 AED: $1). The recent strength of the pound against the dollar means by investing now, investors are achieving a 10% - 15% ready equity compared to the same price

Al Dabal: The project is in line with Dubai’s economic development
Hashim Al Dabal, CEO of Dubai Properties announced the launch of the AED 50 billion Culture Village, a unique development offering an elite lifestyle in an intellectually stimulating environment, with year-round world class cultural events.

Al Dabal said: “The launch of Culture Village has been inspired by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, who encourages and supports culture and the arts. The launch of Culture Village is in line with the economic and commercial development of Dubai and answers the need for culture and art to flourish in parallel.”

Culture Village will be developed by Dubai Properties, a Dubai Holding company. It will be located along the Dubai Creek next to Garhoud Bridge on an area of 40 million square feet.

“Culture Village will be a tourist landmark that will attract culture and art lovers from all over the world. His Highness Sheikh Mohammed initiated the development of Culture Village because of the important role that culture and arts play in developing nations. The project will add diversity to the cultural and art scene in the UAE and the region,” Al Dabal said.

“This project is unique as it focuses on one of the most important pillars of civilization. Dubai Properties is delighted to introduce Culture Village, which will enhance the UAE’s position regionally and internationally in the field of culture and the arts.

“Culture Village is intended to be a world-class destination that mixes old-world pleasures and entertainment with a modern, sophisticated ambiance,” Al Dabal added.

Culture Village will feature wide open spaces, traditional wind towers, cobble stone walkways, unique sculptures, waterways topped with bridges, creekside souks, restaurants and cafes, an amphitheater for live performances and cultural festivals, an exhibition hall and museums, and a dockyard where traditional dhow building will be on display.

It will blend Middle Eastern history with the rich heritage of Dubai, offering an inspired mix of Arabic and old Dubai architecture. Murals, sculptures and pottery will adorn the façades of buildings and street corners.

Culture Village’s master plan has been divided into residential, commercial and retail zones with hospitality and entertainment sub-districts.

The residential district will feature traditional low to medium-rise buildings offering studio, one, two, three, and four-bedroom apartments with contemporary interiors, including loft-style apartments with work areas.

The commercial district will house cultural institutions, schools, academies for art, music, dance, pottery and other crafts. World-class infrastructure and facilities will be available for each organization.

The retail district will feature luxury hotels, designer boutique-style restaurants and coffee shops, as well as rare book shops and art and craft galleries. A rustic traditional souk, offering Arabian crafts, antiques, and spices and herbs, will be the focal point of the retail district.

“We have already been approached by a number of international designers and retailers, specializing in unique artistic crafts and merchandising, interested in setting up boutiques in Culture Village. The retail district will be a unique shopping experience,” said Al Dabal.

Culture Village has been master planned as the most exclusive address in Dubai. It is expected to appeal to both local and international investors.

Dubai Properties has been instrumental in adding to the real estate diversity of Dubai with niche projects such as Business Bay and Jumeirah Beach Residence. Now, with the launch of Culture Village, the landmark developer is inspiring residents and visitors alike with the richness and diversity of culture. ... by propertyworldme

Dubai is a property market of two halves as it is still a relatively young market in terms of its accessibility for foreign buyers it still has an active off plan residential real estate marketplace, and now it also has a resale and rental market too. This article examines the prospects for both in 2007.

Dubai's Off Plan Real Estate Prospects in 2007

When it first became possible for foreigner buyers to own freehold real estate in certain areas of Dubai there was an immediate frenzy of interest as properties were selling for relatively low prices in a location where there was already intense demand from expatriate workers for housing.

Both investors and expats living locally in Dubai went head to head for real estate and the off plan property investment cycle was born.

Investors have been making excellent profits from buying properties off plan in Dubai and paying just a deposit for them before flipping the incomplete units back onto a market where demand has been hungry for such property stock. Those who have bought in particularly well located and attractive high rises have often profited most by buying at the point of project conception and then holding stock until all other units had been sold out…by waiting until demand for properties was outstripping the supply and then re-floating off plan stock on to the waiting market, investors have taken good profits in a relatively short space of time.

However, for such a market for profitability to continue there has to be a driving demand from other investors to buy flipped on properties and evidence suggests that this will not continue to be the case throughout 2007. It's a fact that profits derived from taking such an investment approach have softened recently because prices have risen so high, and the thought that Dubai's property market can continue rising unabated and unchecked forever is naive at best and dangerous at worst.

Investors who take this flipping approach never actually intend paying for their properties, instead they rely on the fact there will be a waiting market hungry to buy resales off plan and all evidence is suggesting that this demand is waning and that the off plan market for investors could show signs of weakness in 2007.

Dubai's Resale and Rental Real Estate Prospects in 2007

All is not lost - Dubai's resale market and the future prospects for completed property stock are very good indeed for 2007 and beyond. Basically there is such intense and growing demand for real estate in Dubai with 5,000 new families moving to the emirate every month that supply cannot keep up with demand which pushes up rental rates charged and the underlying value of completed resale properties.

As each and every individual, couple or family arriving requires decent accommodation within easy reach and short commute of the main free trade zones and business areas, completed property stock across Dubai is intensely in demand meaning rental rates are already soaring and property prices are creeping higher. Dubai is also suffering from severe construction delays, a worsening shortage of construction workers and an excessive increase in the price of building materials which is holding back new projects and meaning that the predicted number of units to be completed in 2007 has been revised downwards. Clearly supply is not about to flow into the market any time soon and so the profitability of and desire for completed stock will rise.

Real estate investors looking for good performing property assets in Dubai need to buy completed stock in a good location that is not highly adversely affected by the commute issues plaguing Dubai at the moment - and then and only then can they be assured of strong returns in 2007 and beyond.... by www.amberlamb.com

Property in Dubai has had investors rushing for off plan deals provided by developers in the region building numerous Dubai projects. The attraction of affordable luxury living, a tax free environment, predictions that point toward good capital growth and being part of the world fastest growing city make Dubai an attractive proposition.

About Dubai

Dubai is one of the seven emirates that make up the United Arab Emirates. This location has been a hot market for luxury property in the past few years. Dubai is the most populated and second largest United Arab Emirates. Dubai has been seeing enormous construction and has attracted several real estates projects.

Large projects in Dubai include offshore property such as the Palm Islands and The World. Inland projects include Dubai Marina, Dubai Waterfront, Business Bay, Dubailand and The Burj Dubai Complex.

These overseas property complexes feature the innovative and ultra-modern architecture of the skeikh. These properties are home to skyscrapers such as Emirates Towers and the Burj al-Arab. The Burj al-Arab is located on offshore property in the Persian Gulf. The Burj al-Arab is currently the tallest hotel in the world.

Dubai's Emaar Properties is working on another tall structure that may be the future tallest structure in the world. The final height of the skyscraper is a secret and is expected to be completed in 2008. The skyscraper will be called the Burj Dubai. The company is also building the world's largest shopping mall called the Dubai Mall.

Business Bay is also a very prominent piece of property in Dubai. The new business district is to be home to five hundred skyscrapers, all of which are going to be built on land that was lifted from the Dubai Creek.

New laws mean more buyers Duabi has been an attractive place to invest in overseas property the sticking point for some time has been the confusion concerning freehold laws in Dubai. New laws now allow foreigners to own the freehold of certain real estate in Dubai. Since the announcement on March 12 2006 that non United Arab Emirates nationals may be given the right to own freehold properties in some parts of Dubai, massive interest has been stirred in overseas property investors. Demand is surging and real estate is in short supply many off plan developments sell out in days of release.

Freehold in Dubai Foreigners will have the right to lease or purchase the land, after getting approval from the three master-developers, Emaar, Al Nakheel, and Dubai Properties. Land will be registered in the name of a foreigner only after the developers submit a no-objection letter, stating that all the payments for the transaction have been made in full. There are three kinds of ownership proposed in the legislation: freehold, usufruct, and common hold. The owner will have complete ownership rights over a free hold property and the building in this case will be in the owner's name. The second category is usufruct or long-term lease. The law characterizes 'usufruct' as the right to use another's property short of destruction or waste of its substance. The right of usufruct, as per the law, should not be for less than five years. This will most probably be a long-term lease whose maximum validity period will range from anywhere between 50 to 99 years. Common hold allows leaseholders to dispense with their landlord and obtain a share of the freehold.

Dubai property why some say no

Property in Dubai is expanding so quickly and at such large volumes some investors are worried that Dubai may have an over supply of real estate. However these investors are not looking past the next 3 years and over the medium to long term Dubai is set to offer sound investment potential. Increased tourism and a growing expat population will meet the demand that investors need to benefit from their Dubai property.

Dubai is working on building their tourism industry and they are also building massive and monumental properties such as Dubailand in order to attract foreign tourists. They are also working on building their cultural environment through the construction of the Dubai Cultural Village. The development will include performing arts centers, art museums, libraries, schools for music and dance and rare bookstores. The Madinat theatre is one of the most significant and luxurious theaters in the region and will host numerous West-End productions.

Dubai is working on quickly becoming one of the premier locations to own luxurious overseas property and they are making it very attractive with their monumental skyscrapers and offshore properties. They are building a dream and they hope to attract attention from all over the world.... by Nicholas Marr