After the Oil Rush
MORE than 100,000 Britons have bought property in Dubai in the past three years, making it one of the hottest spots on the list of second home destinations. The attractions are obvious: beautiful climate, sandy beaches, low prices, a luxurious standard of living and, best of all, low house prices.
This tiny trading post on the Persian Gulf, which struck oil in 1966, is transforming itself into a tourist haven and a world business centre to rival London or New York. Last year 2.5 million British tourists visited Dubai and today just 20 per cent of its earnings come from the petro-chemical industry. Its population is increasing faster than any in the world and its economy is growing at twice the rate of China’s.
The property market has boomed too, according to Mark Stott, managing director of Dubai Select, which sells property there. ‘Last year prices rose by 18% and the year before it was 22%. I think it will be about the same this year, but if the government introduces new property ownership rules this year, we will see a big jump in prices.’ Some people who bought off plan three years ago have doubled their money, he says.
There are 85,000 properties in the pipeline, so where should you buy? The flagship development, in which the Beckhams were given an apartment, is Palm Islands. Racing drivers Michael Schumacher and Jensen Button also own there. The palm shaped development comprises the world’s two biggest man-made islands and when completed will include more than 60 luxury hotels, 4,000 villas, 1,000 waterfront homes, 5,000 apartments, marinas, theme parks, restaurants, shopping malls, sports facilities, health spas, cinemas and dive sites. Prices for a villa on one of the palm fronds are as high as £2.5 million, but a one-bedroom flat will set you back a more affordable £230,000.
The Torch is another iconic Dubai development. The 74-storey beacon stands proudly at the mouth of Dubai Marina, right in the heart of the waterfront. Apartments here have stunning views across the length of the marina itself but also out across Jumeirah Beach, the Palm Jumeirah and beyond to another ambitious island project known as The World. It has 504 luxury apartments with one, two and three bedrooms. A three-bedroom apartment with a sea view, will cost £264,000 through Dubai Select.
To attract even more tourists the emirate is creating Dubailand, a 3 billion square foot theme park bigger than anything Disney could dream of. As well as zoos, extreme rides and even a dinosaur park, Dubailand, will include residential property.
Most Dubai property is still being built but there are a handful of completed projects, such as Arabian Ranches. It is hailed as a desert paradise, situated 15 minutes drive from Jumeirah Beach and Sports City. Arabian Ranches comprises villas and townhouses built in styles that range from Mediterranean to Arabic around one of two golf courses. Sport is a big feature and there is and equestrian centre with polo fields, riding stables and bridle paths throughout the estate. There also parks with swimming pools and play areas.
Like most developments in Dubai, Jumeirah Beach Residence, or JBR, is built on a scale unknown in Europe. It stretches across more than a mile natural beach and overlooks The Palm and the Arabian Gulf. It also backs onto the marina and is close to luxury hotels, the Emirates Golf Club, Dubai Media City and the American university. It will have 36 residential towers, four hotel towers and beach clubs. It is tipped to be one of the best beach properties in the world. Prices for a three-bedroom apartment start from £269,000 through Dubai Select.
The most eyecatching development is The World, a collection of private man-made islands in the shape of continents, which when viewed from above will look like a map of the earth. Its 260 islands can only be reached by boat – there will be no cars – and owners can retreat to a luxurious a world of their own. The entire development will measure five miles by three in the middle of the ocean and 100 metres of water will separate each island.
Source: Extract taken from “After the oil rush” by Duncan Farmer for The Mail On Sunday