Inward Migration and Demand for Property in Dubai

2002 and 2006 have been two great years for the property market in Dubai. The measures taken into these two years have resulted in helping the Dubai property market becoming mature and develop into a strong investment sector for expatriates. The market is now in full capability to cater to the ever increasing housing demands for inward immigrants in Dubai.

Dubai has a very diverse population, comprising of people with multiple nationalities and ethnic origins, living together. Census records indicate that 17% of the population of Dubai is UAE nationals, while the remaining population is distributed into the immigrants from neighboring countries, expatriates and temporary residents with work related or other visas. With the increasing number of businesses and multinational companies starting operations in Dubai, the inward migration of professionals and their families is also mounting. The tax-free salary in Dubai is one major attraction for professionals from world over to relocate to this city. Additionally, it is the wealth of job opportunities and leisure activities that attracts foreigners to Dubai.

With this trend of increased migration to Dubai, the housing needs in Dubai are also escalating. As many of the companies are offering high tax-free salaries to expatriate employees, the rent is affordable to most of them. Earlier it was not possible for expatriates to buy residential or commercial property in Dubai. But now with the implementation of new freehold property law, expatriates can actually own property in Dubai. This has certainly increased the demand for properties. Expatriates who were spending money in the form of house or office rent for many years are now trying to save money to buy a property of their own.

As the property market in Dubai is in a growing stage, expatriates are thinking of buying a house as a future investment. Thus the inward migration of expatriates to Dubai has increased the demand of properties in Dubai.