With the war in Iraq and nuclear issues with Iran, it's easy to think the entire Middle East is in turmoil. But that's far from the case, at least when it comes to real estate.
Industry and government officials from Jordan, Lebanon, Egypt and other Middle Eastern nations attended MIPIM , the International Property Market, in Cannes on the French Riviera earlier this month to show off their latest and greatest commercial and residential projects and solicit potential investors and buyers.
But no place in that part of the world had a greater presence than Dubai, the United Arab Emirates city on the Arabian Gulf.
Much of Dubai's real estate is spectacular, to say the least. For example, the Burj Dubai Tower will be the world's tallest building when it is completed. And island properties that jut out into the sea are shaped to resemble palm trees and the globe.
According to the city's building and housing department, there were nearly 500 multi-story buildings under construction as of October, and 15,000 residential units are scheduled for delivery over the next three years.
While there is some question whether demand will match the supply, sales to date suggests it will. When the Jumeirah Village complex was put on the market in September, 7,000 villas were gone by the end of the first day.
The stampede of buyers was largely from the Middle East where nearly three out of every four people are under age 30. But officials said more than a handful were European Arabs, and some were even from America.
That in and of itself is a milestone. Less than three years ago, only UAE nationals could own property in Dubai. But in May 2002, Crown Prince General Sheikh Mohammed bin Rashid Maktoum signed a decree allowing foreign nationals to buy and own property.
Some of the more "special" of the country's decidedly American-like properties include:
- Business Bay, a commercial, business, and residential cluster that will cover 64 million square feet intended to rival the Ginza business center in Tokyo and even Manhattan. This "new city" within the city will have office and residential towers set in landscaped gardens interspersed with a network of roads, pathways, and canals.
Business Bay is said to be the cornerstone of the new economic push to extend the international role of the UAE. Phase one sold out immediately.
- Dubai Sports City, a 7.5 million square meter complex that will include one 25,000-seat multi-purpose stadium for soccer, rugby, and track and field events, another 25,000-seat stadium just for cricket, and a 10,000-seat field hockey stadium. It also will feature an Ernie Els-designed, link-style golf course, a 140,000-square-meter mall, two hotels, a medical clinic, and 789 single-family villas.
- Dubailand, dubbed "the most ambitious tourism, leisure and entertainment destination ever created," will be divided, ala Disneyland, into five worlds. Among them will be Attractions and Experience World with 14 theme areas, including a Pharaohs Theme Park; Leisure and Vacation World featuring spas and fitness centers with all-female staffs, and Retail and Entertainment World with the largest mall in the universe covering an area equal to 50 football "pitches."
- A race track will be the central feature of a project known as, what else, Motor City.
Housing hasn't been forgotten. Two more luxury residential developments are rising on the Dubai coastline in the new growth corridor of Mara. One, Jumeirah Beach, will features 36 residential towers with 6,500 units and four hotels. The other, Jewel, will rise 20 stories above the region's largest yacht club.
Also worthy of note, DAMAC Properties, the largest private property developer in the country, recently inked a deal with Mashreqbank, UAAE's largest private financial institution, to provide mortgages to those who need to finance an apartment.
"This agreement will give our customers greater confidence and the peace of mind that their purchase is fully funded and backed by the financial strength of Mashreqbank," said DAMAC executive Peter Riddoch.
