Priced out of Dubai? Take a look at these options

Dubai may take the lion's share when it comes to real estate column inches, but as we currently witness a shift in focus towards end-users, those buyers looking for more property for their dirham might want to investigate the growing number of housing opportunities in other emirates.

The stellar rise of Dubai's property market has been well-documented. Since the government opened the sector to foreign investment in 2002, Dubai has made many advances, the most notable being the recent regulations that have been implemented by the Real Estate Regulatory Authority (Rera), providing buyers with a much-needed confidence boost.

Abu Dhabi however, with its constantly rising population, finds demand is way ahead of current supply, with some reports estimating that 17,500 units will be needed by the end of this year.

In reality, the amount of housing that will be online by then will be vastly below that number, which should help to secure continued interest in the emirate from developers.

There is currently no land department or agencies dedicated to the regulation of property development in Abu Dhabi - all real estate matters are dealt with by the Department of Municipalities and Agriculture.

Opportunities

The capital, which boasts grand-scale developments and prices currently in the medium-to-high category, has benefited from the yields of Dubai. But rich as it is with oil money, the capital has more time at its disposal to develop the market at a slower pace than its neighbour, relying less on short-term investors and focusing more on those looking for long-term options.

A little further away from the spotlight of its neighbours Abu Dhabi and Dubai, lies Ras Al Khaimah (RAK), another emirate currently making noise in real estate circles. RAK's lifestyle-oriented and mixed-use style of developments coupled with its coastal location and the surrounding beautiful Al Hajjar Mountains have helped create its own unique appeal.

It's not hard to see why RAK, with its outdoorsy character and more relaxed pace of life, is attracting increasing numbers of tourists (there was a 40 per cent increase in visitors in 2007), and developers are beginning to see the merit in jumping on what could prove to be a lucrative bandwagon, targeting those looking for a quieter pace of life.

If you are looking to buy a home in the UAE, another place that should be considered is Ajman. It may be the smallest of the seven emirates, with an area of just 260 square kilometres but, in typical UAE fashion, it is big on ambition.

Prices are lower than those in Dubai and Abu Dhabi, yet for those willing to commute, it is still feasible to travel to offices in Sharjah and Dubai.

In the past, Ajman has been the playground of small developers, unwilling or unable to move into the more developed markets of Dubai and Abu Dhabi, but now, given the lower entry rates and rising demand from end-users, we are seeing the bigger players, many from the sub-continent, expanding into what they have pegged as an area of strong potential growth.

With advancements in the emirate's infrastructure and utilities supply on their way and a list of imaginative and luxurious development projects as long as your arm, Ajman, at least for now, is looking like the emirate of choice for anyone priced out of Dubai.

In essence, each of the emirates offer different investment opportunities.

- The writer is Managing Director, Better Homes.