I assume that you all know Donald Trump, one of the world’s most successful property developers.

In the late eighties he lost his entire fortune, around US$ 800 million, because he had invested too aggressively and speculatively in the New York real estate market.

Now, when you have lost your entire fortune, you will be a bit more careful in the future with your money, and in Mr. Trump’s own words on the subject of investing in Dubai:
“I have always been a little nervous about investing in Dubai. In my opinion, the people who invested in Dubai between year 2000 and 2002 were gamblers.

The people who invested between year 2002 and 2006 were speculators, but, from year 2007 I can see that everything the government promised would happen has happened.

I am referring to the vast infrastructure investments in Airports, the Metro and The Free Port, roads and state of the art Telecommunication.

The private investments such as Dubai Land, Palm Islands, The World, The Burj Tower, Business Bay, IMPZ are also well under way.

So now, I am convinced. Dubai is not a dream; it is a reality, with a splendid future ahead of it so I have now decided to invest in Dubai too.”

No matter what speculaton goes around Dubai is growing and will be a great investment as long as it does. The theories simple, more people move to Dubai, more deamnd for housing. With the introduction of the new free zones with 65 years guaranteed no tax by the govt multi nationals are being attracted from all across the globe to set up in Dubai to enjoy the tax free haven. Statistics show demand for residential units is estimated at 70'000 per year against a delivery of 57'000 units. So when demand is higher than supply abnormal appreciation will always be experienced. Dubai's rental returns are very similar to singapore but purchasing price is 3 times less. This is a key statistic as they are very similar markets in the same region. I only see Dubai's market calming down once all the new businesses have come in, all the new infra structure has been put in place and the inflow of people slows down. Untill then Dubai is a highly lucrative investment for anyone.

My personal prediction as an economist and an experienced property investor, it will take till atleast 2020 untill we see a significant slow down in the market.

If you would like any further info or just liek to be pointed in the right direction regarding investments please feel completely free to send me a message. Thank you.