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Investing in real estate in Dubai, UAE, remains one of the popular forms of financial investment. The country boasts tremendous economic potential, evident from the pace of development of its major cities. Real estate development in Dubai is one of the critical directions that influence the overall economy. Foreign buyers are drawn to the great investment potential and the high quality of the housing, constructed utilizing modern technologies.
Content:
- Importance and prospects of real estate development in the UAE, development history
- Stages of building a high-rise
- Investment and financing
- Construction and construction sites
- Marketing and sales
- Project completion and implementation
- Success stories of real estate development in the UAE
- Conclusion
Importance and prospects of real estate development in the UAE, development history
A popular tourist destination attracts millions of holidaymakers every year, all in need of accommodation. Tourism is equally enticing for investors because the entertainment industry offers extensive income opportunities. New hotels, attractions, and cultural landmarks contribute to the growth of the leisure industry and generate demand for real estate development.
The UAE has set the goal of creating a sustainable infrastructure and environment, as evidenced by the rapid growth and development of the country. In fact, the state transformed from a desert settlement into one of the most promising global players in just the latter half of the last century. The development of property in Dubai is directly linked to the discovery of oil reserves. However, the most active construction period occurred only in the 1980s to 1990s when authorities decided to invest in the tourism sector. Since then, not only the construction pace but also the quality of the properties themselves have changed.
Dubai's skyscrapers are awe-inspiring, with many of them being internationally renowned. For instance, the iconic Burj Al Arab hotel, shaped like a sail, and one of the tallest buildings globally, the Burj Khalifa with a construction cost of approximately $1.5 billion. The stages of real estate construction are meticulously controlled, ensuring high quality.
Stages of building a high-rise
The real estate planning in Dubai involves a series of steps, each of which plays a vital role in successful execution:
- Market research and analysis: Monitoring supply and demand, analyzing competitors and trends help in selecting the right format for the future project and the construction site. Equally important is the assessment of financial feasibility, budget calculation, and potential profitability.
- Concept development: Every project must have defined objectives, and the development of a general idea contributes to achieving them. It should include the type and structure of a housing project, architectural design, and functionality.
- Land acquisition, cadastre planning: Searching for and acquiring a land plot, cadastre planning for the future building, including amenities and zoning.
Planning and design
Planning in real estate construction involves a detailed approach to choosing the construction site and obtaining the necessary permits. Automation and digitization are playing an increasingly significant role. Technologies are used for accelerated planning, design, and work quality improvement. With 3D printing, builders can create complex structural elements.
Today, blockchain and robotic process automation occupy a significant share of the market. Smart construction solutions for remote building and system management are the next step towards simplifying operations.
Architectural solutions
Creating detailed architectural plans and designs for houses in the UAE is one of the key stages in the design process. It includes the development of conceptual and technical solutions for external and internal design as well as calculations for construction and building loads.
At the initial stage, functional and aesthetic requirements for the building are determined. Based on the gathered data, an architectural concept is developed, determining the overall appearance and style.
Subsequently, architects create detailed drawings, including floor plans, facades, sections, and roof plans. These drawings contain information about the sizes, proportions, and placement of building elements. Interior design is developed, including layout, choice of finishing materials, furniture, lighting, and decor.
Investment and financing
The interests of buyers of real estate in Dubai under construction are securely protected by the government. A company cannot obtain a license to operate until it confirms its financial viability. For this, the land plot for construction must be owned by the developer. Additionally, they must have the required amount in a special escrow account, covering from 20% to 50% of the entire construction process. In practice, the developer uses their own funds, so they are interested in timely completion of the project. This makes purchasing Dubai houses directly from the developer at the early stage of construction completely secure.
Financial aspects and sources of investment
There are several key financial aspects and sources of investment that can be applied when building a villa in Dubai:
- Equity: profit from the developer's own investments or existing capital, as well as income from previous projects.
- Foreign investments.
- Bank loans and financing.
- Private investment funds.
- Investments from government authorities. The government actively invests in the development of infrastructure projects.
- Pre-sales.
- Partnerships and joint ventures.
Budget management and financial sustainability
Effective budget management helps prevent overspending and maintains financial stability. Regardless of whether it is another skyscraper in Dubai or a complex of townhouses being constructed, the budget is carefully calculated. Funds are allocated separately for each stage of work. A reserve fund is always included, ensuring that real estate investment in Dubai, UAE, are securely protected from any risks.
Construction and construction sites
The construction sector in the UAE is transitioning towards automation, intelligent design, and eco-friendly technology solutions, offering investors new business opportunities. The Emirates have set an ambitious goal to completely eliminate emissions into the environment by 2050. This encourages builders to choose eco-friendly construction materials and energy-efficient resources, such as thermal insulation limestone concrete blocks, solar panels, recycled glass mosaics, and other innovative products.
Quality control
During the construction process, increased attention is paid to several aspects:
- Eco-friendly planning, which includes selecting land plots while considering the preservation of the natural environment and developing construction plans that minimize negative environmental
- Use of non-toxic materials, with preference given to those that do not contain harmful or toxic substances. This contributes to creating healthy and safe living conditions in Dubai apartments.
- Efficient use of electricity and water, which is crucial in the hot climate of the UAE, where efficient resource consumption becomes particularly relevant.
As a result of adhering to these requirements, housing exhibits high energy efficiency, a long service life, and the ability to function effectively in a hot climate.
How skyscrapers are built
New buildings in Dubai are constructed using concrete. This material is chosen for its strength and environmental safety. The composition of the concrete is specifically developed for the local climate. Even sand is specially imported, as local sandstone does not provide sufficient cohesion for the mix. The only drawback of concrete is its high cost, which is why Emirates real estate prices are relatively high.
Concrete, glass, and special silicones that ensure the bonding of materials are what houses are made of. Reinforced concrete structures are created to withstand increased loads, resist winds and sun exposure. The shape of the buildings is also carefully designed to ensure stability. After the completion of the work, safety system and construction infrastructure testing is conducted.
Marketing and sales
Marketing directly influences the success of sales. Its tasks involve highlighting the attractiveness of a specific property. Marketers promote new Dubai projects using a wide range of tools. The higher the rating of the housing, the higher the demand for it, which also depends on the location, prestige, and the presence of developed infrastructure within the complex and the surrounding area.
Real estate marketing
Sales are boosted by:
- Creating an attractive website for the property, including photos, virtual and video tours.
- Posting listings on popular online platforms.
- Collaborating with local realtors and real estate agencies.
- Actively using social networks to attract attention to the property and engage with potential buyers.
- Advertising in mass media.
Pricing policy also plays a role. The price of a house in Dubai must be competitive in the market.
Sales and customer support
Professional assistance from an agent is important both during the selection stage and when making the decision to purchase. Clients may not always be able to clearly articulate their preferences or choose a specific property. Therefore, the broker's task is to find an individual approach and select what the buyer needs.
Project completion and implementation
Developers set clear deadlines for the completion of each complex even at the beginning of the construction of a high-rise building. Developers with a reliable business reputation adhere to the commitments they take on. However, when buying property at the foundation stage, it is important to understand that it is impossible to completely guarantee the absence of force majeure circumstances in any country. Therefore, there is always a risk of extending deadlines.
Completion of construction and preparation for moving in
Housing is handed over move-in ready. The type of finish, the presence or absence of furniture, and household appliances are stipulated in the contract. Amenities depend on the specific project. Air conditioning systems, plumbing, and sanitaryware is mandatory.
Success stories of real estate development in the UAE
There are many projects in the country that are known worldwide, including:
- Burj Khalifa by Emaar Properties. The record cost of constructing the Burj Khalifa is not its only feature. It is a unique symbol of wealth and luxury, towering at 828 meters. At a height of 550 meters, there is an observation deck from which you can enjoy a panoramic view of the city. Inside, it combines residential, commercial, and hotel spaces, allowing residents to find everything they need within walking distance.
- Burj Al Arab, one of the most luxurious hotels in the world. Although the cost of building this structure differs slightly from the construction cost of the Burj Khalifa, it still amounted to about $1 billion. The hotel is known for its luxurious interior and high-quality service.
These are just two examples of modern urban development. High-quality and comfortable buildings for living can be found in any part of the city.
Conclusion
The residential properties in the UAE offer high quality and fully comply with modern safety standards. Buyers are ensured a wide range of options, allowing them to find both ready-made and under-construction properties. On our website, you can obtain analytical information about the state of the market, find out how much it costs to buy an apartment in Dubai, and select the best property for any purpose.
