24. 2000: Government announces foreign freehold ownership 2000: EMAAR, Nakheel, Dubai Properties launched 2001: Dubai Marina, Palm islands set the trend 2001: Off Plan Selling becomes the Dubai industry model 2002: DIFC, Business Bay, Dubailand projects announced 2002: Investors attracted to the high returns market
25. 2002: Private developers (including DAMAC) emerge 2002: Investor driven aggressive market develops 2003: Construction boom begins with Dubai Marina 2003: Real estate prices soar for the next 4 years 2003: Rentals show steep rise fuelling end-user interest 2005: Infrastructure in Dubai struggles to cope
26. 2005: Delays as completion deadlines get missed 2005: Government introduces 15% rental increase cap 2006: Rental cap lowered to 7% every 2 years 2006: New market segment (Middle income) emerges 2006: Secondary market emerges as units complete 2006: Government introduces Property Law in Dubai
27. 2007: ESCROW Law introduced to boost confidence 2007: RERA established to regulate the real estate market 2007: Broker’s Law makes Agent listing mandatory 2007: Cityscape 2007 announces US$ 1 Trillion in projects 2007: US$ 400 Billion market emerges for Dubai
28. Maturing Property Market Excelent Returns Reduced number of new launches Increasing secondary market activity Improved & Solid legal framework Source: EFG Hermes Report, September 24, 2007
29. Source: EFG Hermes Report, September 24, 2007 Only locals allowed to own property Very few non national buyers, low demand Low levels of supply Stability in a relatively small market Opening of market to non GCC nationals leads to frenzy Demand outstripping supply Supply begins to be built The highest observed price increases in 2003-07 Legal improvements clarify grey areas and improve confidence in freehold ownership Pattern of demand changing but demand remains strong Handover of supply occurring at slower than expected rate Massive appreciation in low end price brackets observed Pre-Freehold Property Boom Market Maturing
33. MARINA TERRACE THE WAVES OCEAN HEIGHTS DAMAC HEIGHTS 55% 44% 25% Not yet released RETURNS ON INVESTMENT
34. LA RESIDENCE LA RESIDENCE 2 XL TOWERS BUSINESS TOWER 26% 24% 40% 40% EXECUTIVE BAY 32% 5 Months RETURNS ON INVESTMENT
35. CAPITAL BAY PARK CENTRAL BUSINESS CENTRAL THE CORNER 26% 31% 47% 27% WATER’S EDGE 9% (2 Months) 5 Months 4 Months 3 Months 3 Months RETURNS ON INVESTMENT
36. THE CRESCENT LAGO VISTA LAKESIDE 29% 34% 44% 6 Mths RETURNS ON INVESTMENT
