Developers and investors rush to join Dubai property boom

[lovuian]

The Dubai and UAE real estate industry is booming, with movers and shakers moving in from all parts of the globe.

Windfall profits in property have inspired companies and individuals locally and from afar, to zoom in looking for opportunities. Major construction firms from countries as far away as Australia, such as Multiplex and Leighton Construction, are sewing up billion-dollar construction contracts.

With the majors have come a number of lightweights – companies and individuals with less financial substance, and expertise, that overnight are transforming themselves into property developers. They simply buy up a plot of land, have an architect design an apartment tower, and then rush to the market and sell-off, in most cases hundreds of apartments. They then get the site work done, the piling completed, and ultimately award a building contract to a construction firm. They then build the tower, and ultimately hand over the apartments to the buyers, together with a government-provided visa.

Well that is how it is supposed to work. Many developers however, despite their prowess in securing land, drawing up plans, and then marketing the apartments in their development, demonstrate little enthusiasm for the next steps.
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