This is the first book to fully present, analyse and interpret the Dubai real estate market. Dubai is fast becoming one of the world’s most attractive places to invest in real estate and this book examines the market from three interlinked sectors that drive its performance: occupiers, investors and developers. It examines the market’s historical growth and lays the foundations to examine future trends. The book provides a synopsis of Dubai’s market practices, economic trends and social change that impacts the value of real estate. Chapters also debate issues such as property investment, house price performance, local valuation practices, spatial planning, the economics of the city, market practices and regulation, property-led economic growth and future trends such as sustainability and digitalization. This book offers a comprehensive, in-depth and up-to-date account of the Dubai property market and presents a full assessment of the investment potential of Dubai real estate. It is a must read for students, academics and real estate professionals interested in this fascinating real estate market that has implications for both Dubai and wider GCC markets as well as the international investment market and senior professionals who come to work in the region.
Author(s): Michael Waters
Series: International Real Estate Markets
Publisher: Routledge
Year: 2023
Language: English
Pages: 314
City: London
Cover
Half Title
Series Page
Title Page
Copyright Page
Dedication
Table of Contents
Preface
Acknowledgements
Part A: Contextualizing the Dubai Real Estate Market
1 How did Dubai Become a Leading Global Real Estate Market?
Brief Historical Development: The Economic Forces that Shaped Dubai
Economic growth in Dubai ( Modern Era)
Macroeconomic History of Dubai in the 21st Century (2000–2021)
Interlinkages Between the Macroeconomy and Real Estate
Dubai’s Urban Development Path
“Why so High in Dubai?”
Dubai: The New Global City?
Dubai 2040 and What the Future will Look Like?
Towering Ambitions: Dubai’s Polycentric Growth
Conclusions
2 Property Market Activity
Real Estate – The Global Context
Key Characteristics of Dubai’s Real Estate Market
Current Property Market Performance in Middle East and Dubai
The Impact of Iconic Towers and Property Investment Activity
How can Property Investors Invest into Dubai’s Property Market?
How are Property Purchases Financed in Dubai?
How is Commercial Real Estate Priced?
Buying Residential Property in Dubai: An Example Appraisal
Conclusion
Part B: Analyzing the Dubai Property Markets
3 Residential
Introduction: The Dubai Residential Property Cycle
How Leverage Impacted the Dubai Residential Market Pricing?
Dubai Mortgages: An Introduction
Fixed- or Variable-Rate Loans
Conventional Mortgage vs Islamic Mortgage
Lending Restrictions for Foreign Nationals in Dubai
Prepayment of Mortgages in Dubai
Calculating the Full Cost of Borrowing in Dubai
Cash (Unleveraged) vs Mortgage (Leveraged) Purchase Analysis
Conclusions
4 Building a Global Residential Portfolio with Dubai Real Estate
Key Drivers of Property Investment in Dubai
Key Barriers to Property Investment in Dubai
How does Investing in Real Estate Compared to other Asset Classes?
Why Dubai Might help Diversify your Property Portfolio?
How do Investing in Equities and Real Estate in Dubai Compare?
Managing Currency Risk When Property Investing in Dubai
Conclusions
5 Commercial
Commercial Property as An Investment
Property Transactions in Dubai’s Commercial Market
Main Participants in Dubai’s Commercial Property Market
Drivers of Commercial Property Investment Returns in Dubai
Commercial Yields in Dubai
Availability of Data
Availability of Suitable Quality Stock
Institutional Requirements and Key Drivers of Commercial Property Investment
What is the Future Outlook for Institutional Investment in Dubai?
Indirect Real Estate Investing in Dubai
What Options do Investors have to Gain Exposure to Commercial Property Markets in Dubai?
Key Characteristics of Listed REITs in Dubai
Was it a Step in the REIT Direction for Dubai?
Conclusions
Part C: Professional Practices
6 Sale, Purchase and Leasing Practices in Dubai
Estate Agency in Dubai: Law and Practice
Private Treaty
Tender
Auction
How to Buy a Property in Dubai?
Freehold vs Leasehold Interests
Leases in Dubai
Lease Registration in Dubai
What Constitutes a Lease in Dubai?
Landlord and Tenant Obligations
Assignment and Sub-leasing
Managing Rental Increases
Managing Rental Disputes
Conclusions
7 Managing a Global Commercial Real Estate Portfolio in Dubai
How do Firms in Dubai Decide where to Locate and How Much Space they Need?
How do Leasing Costs for Corporate Occupiers in Dubai Compare Versus International Markets?
Own vs Lease in Dubai?
Conclusions
8 Property Data
Historic Data Availability and Performance Measurement Indicators
Why is Transparency of Data Important?
Market Maturity and Transparency
Defining Market Maturity in Dubai
The Evolution of Market Transparency in Dubai’s Real Estate Market
What Real Estate Data are Currently Available in Dubai?
Case example: Using DLD Transactions to Value a Residential Apartment in Dubai
How are Averages Reported in Real Estate?
Conclusions
9 Property Valuation, Methods and Techniques
Valuation Regulation in Dubai
Valuation Standards Operating in Dubai
Undertaking a Basic Valuation in Dubai
How do We Value real Estate in Dubai?
Dubai as a Proponent of the DCF Method
What Key Variables do you Need to Consider when Valuing a Commercial Property in Dubai?
Evaluating Risk in Property Valuations in Dubai
Key Differences on the Valuation Approaches Between International Markets and Dubai
Case example 1: Valuation of Residential or office Building (Freehold vs Non-freehold Area, Single-owned, Full Tower)
Case example 2: Valuation of Industrial Property
Case example 3: Valuation of Retail Property
How do Dubai Property Valuations Compare to Other Global Markets?
The Future of Real Estate Valuations in Dubai
Market Impacts
Stakeholder Engagement
Technology Adoption
Conclusions
10 Real Estate Development Processes in Dubai
Developer Regulations in Dubai
Development Within a Master Development
Development Within a free Zone
Development in Isolation
Development Regulatory and Statutory Authorities in Dubai
Dubai Municipality
Dubai Development Authority
Dubai Land Department
Other Important Statutory Authorities
How to Evaluate Development in Dubai?
Residual Land Valuations: The Basics
What Techniques are used in Development Feasibilities?
Case Study: Prime Residential Plot: for Sale (DIFC, Downtown Dubai)
Development Appraisal and Assumptions
International Comparisons with Dubai
Key Issues Affecting Development Feasibility in Dubai
Conclusions
Part D: Future Directions
11 Sustainability
What are the Global Challenges?
The Evolution of Sustainability in Real Estate
How are Developers Impacting Sustainable Development in Dubai?
Sustainability Metrics and Assessments in Dubai
The future: Can we Create new Sustainable Business Models for Dubai?
Conclusions
12 The Future of Dubai as a Smart City
Contextualizing Smart Cities
The Size of the Smart City Market and the Impact of Market Dynamics
The Challenges
Cross-Regional Collaboration: Dubai Leveraging its Position
Smart City Development Pathways and the Importance of People-Centricity
Dubai – The World’s Happiest City
Happiness Drivers
Drivers of City Residents’ Satisfaction and Happiness
Measuring Happiness – Dubai’s Government’s Interaction Feedback
Moving Towards a Balanced set of Smart city Drivers and Enablers
Smart City Drivers and Enablers
Drivers and Enablers of Smart Cities
Dubai’s Future-Focused Strategy
National-, Governmental- and City-Level Initiatives
Sector-level Initiatives
Education and Cultural-Level Initiatives
Community-Level Initiatives
Opportunities for Differentiation
Decarbonization
Strategy Harmonization
Global Networks and the City-as-a-Platform
Sector, Skills and Workplace Transformation
The Emergence of New Physical Spaces – What will Dubai Look like in 50 Years?
Conclusions
Index
