Dubai aims to become the Capital of the Middle East. With the focus on tourism and business on the back of huge investment in infrastructure, and we mean HUGE.....

The theme for Dubai is build it bigger, faster and more outrageous than anyone can imagine!

Dubailand, the Theme Park will supossedly be 4 times the size of DisneyWorld, the Marina will hold more World Class Yachts than anywhere on the planet.

Dubai aims to be the worlds favourite international playground and property prices initially escalated at the realisation of the projects size.

Beware though, not everything in Dubai will make you rich. As with all new markets, the cream of Dubai property has already been bought and the profits taken, much of the prime ´real estate´ was purchased by Dubai´s Emirati elite, Sold through associates to associates like trading securities, until someone eventually ended up holding a complete property.

Many of the projects being promoted now are in secondary locations away from the coast, but list prices don´t really reflect this. With the reccession now in full swing, many of the incomplete projects are abandoned.

There is huge oversupply as thousands of projects come to completion, with no guarantee property values can or will increase, not forgetting rent increases are limited by law, this is having a deflating effect on the value of property.

Be careful of statistics and claims over Capital Growth, often these are produced by the very organisations selling property, therefore ´Caveat Emptor´ remains the order of the day.

Oyster International do not recommend investing in Dubai.

Keep up to date with the latest news from Dubai HERE

Our commitment to recommending markets we believe offer scope to grow and appreciate, whilst providing a positive return, means the numbers on Dubai do not give us enough confidence to promote it.

Oct 26 - At a meeting of the Arab Monetary Fund in Abu Dhabi, Govenor of the Central Bank Sultan Nasser al Suweidi admitted a ´real estate correction´ is possible, but confirmed the Banking Sector was not under pressure to the same extent as in Western Markets. The AMF have already made available $50billion to its Banks, shold liquidity be needed.

For more on the Dubai real estate market  See International News

A number of Dubai Real Estate companies are scaling back projects and laying off staff, even Nakeel, the largest which is owned by the Emirate itself has made 500 employees redundant. It is estimated $250billion of developments have been cancelled or shelved, thats 10 times the Dubai GDP, with more to come.

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