Topic > Dubai Real Estate Market - 835

ACADEMIC LITERATURE:Billions of dollars have been spent building the amazing city of Dubai. Billion-dollar real estate construction is complete or nearing completion. It is the product of the combination of local business strategies and innovative marketing. Projects include hotels, offices, entertainment complexes and huge shopping malls. The construction of historic buildings and the city's love of superlatives have placed it on the global real estate map. A big catalyst for growth was the government's decision to allow expats to own property in the city. But the sustainability of this growth remains an open question. (BAGAEEN, 2007) The close link between the real estate market and the financial market cannot be denied. Real estate prices indicate the financial health of the market and play a very important role in setting monetary policies. Cyclical movements in macroeconomic factors can lead to price fluctuations in the real estate sector. (Dr. Eisa Abdelgalil)The real estate market is characterized by extreme heterogeneity due to the location and physical characteristics of a property. The rise in home prices can be attributed to the entry of the Baby Boom generation into the residential market. The volatility of the real estate market is determined by factors other than demographic variables. Residential and commercial properties differ in dynamics and real estate returns. A family's decision to purchase a home is not only driven by the investment perspective but also by the need for a housing unit. But this is not the case for investors. Various demographic factors are taken into consideration such as: population growth, percentage of the population within a certain age, income and employment goes...... middle of paper ...... on how the Central Bank of the country could take into Consider tightening the rules if rising property prices continue. (Watts, “IMF forecasts UAE economic growth at 4.5% in 2014”, 2014) Additional infrastructure would be needed to accommodate 25 million people visiting the country for the 6-month event. A special company has been created to manage the establishment and operation of EXPO 2020. Supporting facilities that need to be developed before the EXPO include the development of Exhibition City (438 hectares), the completion of Al Maktoum Airport, the expansion of the Jebel Ali port. There would be private investment in hotels, lodging and commercial agencies, and the demand for housing, electricity supply and water demand would increase dramatically. The investments are expected to accelerate Dubai's transportation system. The EXPO is expected to add 1.5% to Dubai's real GDP annually in 2014-2020. (O'Sullivan)