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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Techplayer who wrote (33875)	3/23/2003 2:22:33 PM
From: Techplayer	Respond to of 57110

Real estate investment opportunities: <g> Property investment opportunities bloom in Dubai's desert By Tessa Thorniley (Filed: 17/03/2003) Dubai, in the United Arab Emirates, has taken steps to scrap its protective property laws and is positioning itself as a holiday home destination, which also offers plenty of property investment opportunities. Developers are busily reclaiming vast swaths of desert to build a leisure and property haven and British expatriates, Saudi Arabians, Iranians and Indians have already been rapidly purchasing properties in these new areas. One of the largest development projects currently underway is Palm Island - a vast luxury leisure and property complex - in the shape of a Palm tree. The project has attracted a great deal of interest from other Arab expatriates and Europeans. Activities catered for include scuba diving, swimming and sailing. The city is undergoing constant transformation as the new developments dotting the skyline testify. In particular, the Dubai marina on the Arabian Gulf is testament to the changing face of the city. Three years ago it was sand but today over a hundred tower blocks huddle around the vast artificial lake and retail spaces. The developer, Emarr, said the complex will house more than 35,000 people in luxurious residential apartments, towers and villas. Over 1,500 apartments were sold in 2002 and there could be as many as 45,000 residents by 2006. Prices for the apartments range from £100,000 to £500,000. One of the newest developments - Arabian Ranches, another Emarr site - is a multi-million dollar equestrian, golf and residential development with space for 1,800 villas and 400 town houses. For those who prefer the do-it-yourself approach, at Emirates Hills, near the Montgomerie Golf course (created by Desmond Muirhead, in association with Colin Montgomerie), people can buy land to build their own dream homes. Although certain regions in the Middle East can be notoriously unstable, Dubai has been a prosperous and well-respected tourist location for decades. While the property laws are opening up, certain aspects of ownership and residency rights for foreigners still need to be ironed out. It also remains to be seen if these properties are a good investment as there is always the danger that prices will fall if demand does not keep up with supply. Tristan Clube, head of regional asset management at financial services company EFG-Hermes, said: "The liberalisation of Dubai's property laws is such that in some cases foreigners can benefit from a 10-year resident visa if they buy. Mortgage financing is also becoming more readily available on a 10 to 15-year basis and as interest rates are linked to those in the US they are currently low." However, there is some concern over links between the property developers and the mortgage lending companies.