Dubai Property On a High
While European and US markets have seen mixed results since the 2008 sub-prime problems, both Asian markets and UAE’s Dubai market have seen a major return over the last 12 months to the heyday of the mid 2000s. In this issue of MOMENTUM we take a closer look at the Dubai market, which has made a strong recovery. Dubai’s successful positioning as a hub within the Middle East provides a fascinating insight into where Bangkok could end up as the central landing point when AEC (ASEAN Economic Community) commences from late 2015.
THE WORLD’S TALLEST SKYSCRAPER
In 2010, the Burj Khalifa earned the title as the world’s tallest skyscraper, a mixed-use development featuring the 304 room Armani Hotel including hotel branded residences, 900 apartments, viewing platform and office space. Soaring 828m into the sky, the iconic building is designed to represent Islamic architecture, with the triple-lobed footprint of the building based on an abstraction of the desert flower Hymenocallis which is native to the Dubai region.
Alongside the iconic Palms development and Dubai Marina, the Burj Khalifa is a symbol of the prosperity in the region, and has helped position Dubai as both a financial capital of the region, and a commercial hub. (www.burjkhalifa.ae)
PROPERTY FUNDAMENTALS
With more than 80% of Dubai residents being expats, the demand for high quality residential to match the fast growth of the city has ensured that the temporary setbacks of 2008 have been eclipsed by a property boom.
As Dubai continues to deliver the finest in sports, high quality lifestyle dining and shopping, increasingly expats are making the decision to base themselves in Dubai which also provides a low tax environment for entrepreneurs and a high standard of living. A burgeoning tourism market provides a solid support for the property market. Dubai’s strength in favorable business regulations and tax free status means it has also quietly assumed a leading position in the region for low cost, high quality manufacturing and services.
Because of the high number of foreigners staying short and medium term, rental yields remain substantially higher than the 2-3% commonly seen in Hong Kong, or 5-6% seen in Bangkok.
COMING SOON
The Address The BLVD, Emaar Properties’ new five star Address Hotel and luxurious serviced residences reaching 370m tall with 72 storeys is underway, with completion in 2015. With direct access to The Dubai Mall, the world’s largest shopping and entertainment destination, The Address The BVLD, recorded a sold-out response to all the units on the first day of its public launch, indicating that Dubai is well and truly back on the property map.
CONCLUSION
The days of Dubai being an oil driven city are well and truly over. Now with indoor ski slopes, world-leading retail and hospitality, formula one and sports events as well as a favorable business environment, Dubai is currently a leading tourism destination in the Middle East.
For Bangkok, the path of development has some similarities: moving from a past in agriculture and trading, the future is in high end services and hospitality; green industry and becoming a regional hub.
In a coming issue we will examine United Arab Emirates’ capital city Abu Dhabi, which is also both unique and highly successful; offering another roadmap for the future potential of Thailand’s capital city.