Dubai real estate market to grow

Just when you thought they couldn't go much further, the Dubai government and associate developers seem to be proving everyone wrong.  There are already 25% of the worlds cranes stationed here because of the high levels of construction and on a humid day, the concrete mist obscures the landmarks that Dubai is already famous for, but investment is still set to rise.  Around $225 billion (yes, billion) of capital is due to be designated for Dubai's property sector over the next few years - not bad when you consider that the property sector consisted of no freehold at all only 5 years ago.  The real question on everyone's minds though is this: Is all this property investment a good thing?   

I'm surely not the first person to think that perhaps they are going a little too far with all this property investment.  I mean, it's great to see Dubai recognized on such an international scale and the facilities we get as residents here are second to none, but other economies took decades to achieve these growth rates and Dubai, not even a county I might add, is trying to beat both China and India in a matter of months!  The impact that this has on residents, all of us, is that inflation is going to rise.  It's already obvious that prices have rocketed over the past 2 years and property is the biggest drain on people's expenses.  Rental rates are amongst the highest in the world and offices are the most expensive in theMiddle East.  The reason why the Dubai government needs to be careful about this is because while the West may presume everyone living here is a millionaire, the reality speaks otherwise.  The last thing the government wants is to push investment and faithful residents away through high prices. 

At the present point in time, while we may grumble about rents and about the price hikes, we still live a lot better than back in our own countries, otherwise we would have left a long time ago.  No other place can claim they have year round sunshine, the best hotels and the opportunity to do a spot of skiing if you so wish.  Dubai has gradually become home to many residents over the years - me included. 

But what does all this mean for property, the real issue of the day?  Well, if forecasters are correct, and we like to think they have a rough idea of things, then the property boom is set to continue until at least 2010, if not longer given the hundreds of billions yet to be invested.  This should mean that buying property in Dubai is a good idea.  The market is getting more transparent everyday, with new property law and regulations to protect buyers.  So if you have the money and you want to call Dubai home then go for it, after all, it is a lovely place to live, even with the inflation.  It's highly recommended, though, that you seek advice and guidance from professional realtors and the law before making any investment.