Dubai’s already distinctive skyline is continuously evolving. As soon as one ambitious, seemingly impossible project is brought to fruition another comes on stream. In 2003 the total value of construction of major mixed-use developments in the UAE exceeded Dhs. 25 billion (US$ 6.8 billion). This figure did not include conventional development. Almost all of these massive projects are in different phases of progress in Dubai: the city intends to have the tallest tower in the world at 800 metres; is constructing exotic offshore residential islands in the sea; creating a skier’s paradise in the desert; and is to build a hotel underwater.

The increase in population, flourishing tourism, financial mortgage facilities provided by banks and other financial institutions, and permission for foreigners to own real estate have fuelled the demand for real estate services; most of this demand is for residential units.

It is estimated that the rents for residential property went up by about 20% in the first quarter of 2004. According to a Dubai Chamber of Commerce survey, some sources in the real estate sector estimate that the annual return on real estate investment is between 9% and 10%. Government sources expect that the investment in the real estate sector will total US$ 50 billion s by 2010.

The contribution of the real estate sector to Dubai non-oil GDP was 10% in 2002 and it grew by an annual average rate of 7% during 1998-2002.