Real estate investments in Dubai, UAE, remain one of the most popular types of investments. The country has huge economic potential, which is confirmed by the pace of development of its largest cities. Real estate development in Dubai is one of the important areas influencing the development of the economy as a whole. Foreign buyers are attracted not only by the investment potential, but also by the high quality of the housing under construction, which uses modern technologies.
The importance and prospects of real estate development in the UAE, the history of development
The popular tourist destination attracts millions of vacationers in need of housing every year. Tourism is no less interesting for investors, as the entertainment sector opens up wide opportunities to generate income. New hotels, attractions, and cultural facilities contribute to the growth of the leisure industry and create demand for real estate construction.
The UAE sets itself the task of creating a sustainable infrastructure and environment, which is clearly confirmed by the pace of growth and development of the country. In fact, the state has transformed from a desert settlement into one of the most promising global players in just the second half of the last century. The development of real estate in Dubai is directly related to the discovery of oil reserves. At the same time, construction became the most active only in the 1980s – 1990s of the last century, when the authorities decided to invest in the tourism sector. Since that moment, not only the pace of construction has changed, but also the quality of the facilities themselves.
The skyscrapers in Dubai are amazing. Many of them are known far beyond the borders of the country. For example, the famous Burj Al Arab hotel, which has the shape of a sail, or one of the tallest buildings in the world – the Burj Khalifa skyscraper, whose construction cost was about $ 1.5 billion. The stages of real estate construction are carefully controlled, which allows us to guarantee high quality.
Stages of planning real estate projects
Dubai project planning includes a number of steps, each of which plays an important role in successful implementation:
- Market research and analysis. Monitoring of supply and demand, analysis of competitors and trends help to choose a competent format for the future project, a construction site. Equally important are the assessment of financial feasibility, budget calculation and potential profitability.
- Definition of the concept and its development. Any project should have ultimate goals, which are facilitated by the development of a common idea. It should include the type and structure of the real estate fund, architectural design and functionality.
- Search and purchase of a land plot, cadastral planning for the further placement of buildings, including infrastructure and zoning.
Planning and design
Planning for the construction of real estate involves a detailed approach to choosing a construction site and obtaining appropriate permits. Automation and digitalization are playing an increasingly important role. Technologies are used to accelerate planning, design and improve the quality of work. With the help of 3D printing, builders can create complex structural elements.
This year, blockchain and robotic process automation occupy a large market share. Intelligent construction solutions for remote management of buildings and installed systems are the next step towards simplifying work.
Architectural solutions
The creation of detailed architectural plans and design of a house in the UAE is one of the key stages in the design process. It includes the development of conceptual and technical solutions for exterior and interior design, as well as calculations for the construction and load of the building.
At the initial stage, the functional and aesthetic requirements for the building are determined. Based on the collected data, an architectural concept is being developed that defines the overall look and style.
The architects then create detailed drawings, including floor plans, facades, sections, and roof plans. They contain information about the size, proportions and location of building elements. Interior design is being developed, including layout, choice of finishing materials, furniture, lighting and decor.
Investing and financing
The interests of buyers of real estate in Dubai at the construction stage are reliably protected by the state. The company cannot obtain a work license until it confirms its financial viability. To do this, the land for development must be owned by the developer. He is also required to have the necessary amount in a special escrow account, covering from 20 to 50% of the entire workflow. In fact, the developer spends his own funds, so he is interested in timely delivery of the object. This makes the purchase of real estate in Dubai from a developer at the excavation stage completely safe.
Financial aspects and sources of investments
There are several key financial aspects and sources of investment that can be applied when building a house in Dubai:
- own funds: profit from the developer’s own investments or available capital, as well as income from previous projects;
- foreign investments;
- bank loans and borrowings;
- private investment funds;
- investments from the authorities. The state is actively investing in the development of infrastructure projects;
- pre-sales;
- partnerships and joint ventures.
Budget management and financial sustainability
Effective budget management helps to prevent overspending and maintain financial stability. Regardless of whether another Dubai high-rise is being built or a townhouse complex is being rented, the budget is carefully calculated. The money is pledged separately for each stage of the work. A reserve fund is required, so investments in real estate in Dubai, UAE, are reliably protected from any risks.
Construction and construction sites
The UAE construction sector is moving towards automation, intelligent design and environmentally friendly technology solutions, providing investors with new business opportunities. The Emirates has set an ambitious goal to completely eliminate emissions into the environment by 2050. This encourages builders to choose environmentally friendly building materials and energy-efficient resources such as thermally insulating limestone concrete blocks, solar panels, recycled glass mosaics and other innovative products.
Quality control
During the work, increased attention is paid to several aspects:
- environmentally sound planning. It includes the selection of land plots taking into account the preservation of the natural environment, as well as the development of construction plans that minimize the negative impact on the environment as much as possible;
- the use of non-toxic materials. Preference is given to those that do not contain harmful or toxic substances. This contributes to the creation of healthy and safe living conditions in apartments in Dubai;
- efficient use of electricity and water. This is important in the hot climate of the UAE, where efficient resource consumption is becoming especially relevant.
As a result of meeting these requirements, housing has high energy efficiency, long service life and the ability to function effectively in hot climates.
How to build skyscrapers
In Dubai, houses are built of concrete. This material was chosen for reasons of durability and environmental safety. The composition of the concrete is designed specifically for the local climate. Even the sand is specially imported. The local sandstone does not provide sufficient coupling of the mixture. The only drawback of concrete is the high cost. Therefore, the price of real estate in the Emirates is quite high.
Concrete, glass, and special silicones that ensure the adhesion of materials to each other are what houses are made of. The reinforced concrete structure at the base is created taking into account the need to withstand increased loads, withstand winds and the sun. The shape of the buildings is also carefully thought out in such a way as to ensure sustainability. After completion of the work, testing of security systems and infrastructure of the building is carried out.
Marketing and sales
Marketing directly affects the success of sales. Its tasks are to emphasize the attractiveness of a particular object. Marketers promote new buildings in Dubai using a wide range of tools. The higher the housing rating, the greater the demand for it, which also depends on the location, prestige, and availability of developed infrastructure inside the complex and in the surrounding area.
Real estate promotion on the market
Sales are promoted:
- creating an attractive website for an object that includes photos, virtual and video tours;
- placing ads on popular online platforms and portals;
- cooperation with local realtors and real estate agencies;
- active use of social networks to attract attention to the object and interact with potential buyers;
- advertising in the media.
The value formation policy also plays a role. The price of a house in Dubai should be competitive in the market.
Sales and customer support
The professional assistance of an agent is important not only at the selection stage, but also at the time of making a purchase decision. Clients do not always manage to clearly formulate their wishes, as well as focus on a specific object. Therefore, the broker’s task is to find an individual approach and choose what the buyer needs.
Project completion and implementation
Developers set clear deadlines for the completion of each complex at the stage of the start of construction of a high-rise building. Developers with a reliable business reputation comply with their obligations. However, when buying a home at the excavation stage, it is important to understand that it is impossible to fully guarantee the absence of force majeure in any country. Therefore, there is always a risk of extending the deadlines.
Completion of construction and preparation for settlement
The accommodation is rented ready to move in. The type of decoration, the presence or absence of furniture, household appliances are provided for in the contract initially. The degree of improvement depends on the specific project. The presence of air conditioning systems, plumbing, plumbing is mandatory.
Stories of successful real estate development in the UAE
There are many projects in the country that are known all over the world. Among them:
- Burj Khalifa from Emaar Properties. The record cost of building the Burj Khalifa is not its only feature. It is a unique symbol of wealth and luxury, towering at 828 m. At an altitude of 550 m, there is an observation deck in the building, which overlooks the panorama of the city. Residential, commercial and hotel premises are combined inside, which allows residents to find everything they need within walking distance.
- Burj Al Arab is one of the most luxurious hotels in the world. The construction cost of this building differs slightly from the construction of the Burj Khalifa Tower. About $1 billion was spent on it. The hotel is known for its luxurious interior and high quality service.
These are just two of the many examples of modern megalopolis development. High-quality and comfortable buildings can be found in all areas of the city.
Conclusion
The UAE housing stock is of high quality and fully complies with modern concepts of security. Buyers are presented with a wide range of objects, which allows them to find both a ready-made and an option under construction. On our website, you can get analytical information about the state of the market, find out how much you can buy an apartment in Dubai, as well as choose the optimal object for any purpose.
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