Out of the current 7.1 million population of the UAE, Dubai account for about 30% (2.1 million) and is the largest Emirate by population. Although Abu Dhabi is physically much larger, it accounts for only about 25% of the UAE population. The remaining 5 Emirates account for the rest of the population.
Over 80% of the population of the UAE is non-Emirati – ie. From overseas and this figure is set to become almost 85% as most of the growth is due to immigration from other countries. Thus less than 15% of the people in the UAE will be the local Arabs (Emiratis).
The biggest future forecast growth is within Dubai where the population will increase by 50% within 4 years and will DOUBLE within 7 years.
From 2005, the Dubai population grew rapidly until 2008. There was a small drop at end of 2008 and in 2009 following the financial crisis but after this the population started to grow and is now growing rapidly once more. This is creating a demand for ‘ready properties’ especially at the lower end of the market and is one of the underlying reasons for the forecast boom in property prices this year and next year.
2017 3,275,000 Forecast
2020 4,292,000 Forecast
Dubai’s Roads & Transport Authority (RTA) and the Dubai Electricity & Water Authority predict that Dubai’s population will increase over 10 per cent a year, reaching over 4 million by 2020. Dubai and Abu Dhabi could be forced to revise population projections and increase investment in infrastructure, as projected population numbers for projects planned by developers are outstripping expectations.
Demand for Low Cost Residential Properties to Soar
Most of the properties under construction are mid to high end. However, many of the residents who wish to rent property are looking for lower cost properties in cheaper areas – not the prime seaside touristy areas of Marina and Palm. We expect demand for lower cost properties to increase and are already seeing this with increases in rents and property prices.
For investors it makes sense to consider such low cost investment properties as these not only provide high net rental yields but are also likely to see good capital growth with their values doubling in the next few years. An example of our most popular such purchase is shown below.