Dubai is rapidly growing in popularity with British second home purchasers attracted by its lifestyle, cosmopolitan atmosphere and sub-tropical climate. In recent years, prices have increased by as much as 25 per cent per annum, while remaining low by UK standards, and Dubai City has become an international property hotspot. The consequent surge in new residential developments has fuelled fears of a property bubble, but demand is still exceeding supply and is not expected to slow in the short term. Dubai City consists of two main areas, Bur Dubai (the older part) and Deira, which faces it across Dubai Creek and is now the centre of the city.

Residential locations traditionally favoured by Westerners include the extremely select Jumeirah, which lies on the coast to the southwest of the city centre, and Al-Garhoud, situated on the northeastern side of the creek, near the airport. However, the recent property boom has led to a ripple effect that is enlarging the popular areas. Most residential development is currently happening west of the city, with the majority of foreign and expatriate purchasers concentrated in an area of approximately 25 km2, within easy reach of the beaches and the city-centre facilities.

1. Rental yields in Dubai are some of the highest of any property investment country. The strong demand from an ever increasing population ensures this will continue.
2. Property prices in Dubai are comparatively cheaper than those in the UK. Combined with the luxury high end finishes and it represents excellent value for money.
3. Mortgage finance is become more widely available at lower rates. Creating more demand for property.
4. A new federal property law has recently been introduced creating more certainty for investors and increase investor demand for Dubai Property.
5. There is a short supply of quality rental property, ensuring rental yields stay high and prices rise, due to the population boom.
6. Dubai has quickly become the regional centre for business and investment, and has attracted a huge number of ex-pat workers.
7. For all the talk of over-supply the reality on the ground is a serious shortage of accommodation.
8. Dubai has benefited greatly from the recent oil price increase, and the government are reinvesting this income on a grand scale, the largest shopping mall in the world and the tallest building in the world are 2 breathtaking examples.
9. Dubai is one of the most visited countries in the world, with millions of tourists and business conventions coming to see the wonders of the Middle East.
10. Dubai is a tax free haven, no income tax, property tax or sales tax makes it very attractive to all.

Population: 2,407,460

Capital: Abu Dhabi

Area: 82,880 sq km

Coastline: 1318km

Language: Arabic (official), Persian, English, Hindi, Urdu

Local Currency: Emirati dirham (AED)

Ethnic Groups: Emirati 19%, other Arab and Iranian 23%, South Asian 50%, other expatriates (includes Westerners and East Asians) 8% (1982)

Life Expectancy: 74.29 years

Major Religion: Muslim 96% (Shi'a 16%), Christian, Hindu, and other 4%

Government Type: federation with specified powers delegated to the UAE federal government and other powers reserved to member emirates

Independence: 2 December 1971 (from UK)

Legal System: federal court system introduced in 1971; all emirates except Dubayy (Dubai) and Ra's al Khaymah have joined the federal system; all emirates have secular and Islamic law for civil, criminal, and high courts

GNI per capita: $22,800 (2000 est.)

Main export: crude oil 45%, natural gas, re-exports, dried fish, dates