Abu Dhabi, July 3rd, 2006 (WAM) -- The UAE hastopped the list of GCC countries in terms of real estate projects under construction as of June 2005 having grabbed 820 out of a total of 1,825 projects, according to a local study.

"UAE secured the first position with a domination of 820 projects accounting for a total value of AED 130.6 billion and Saudi Arabia stood second with 208 projects accounting for a value of AED 28.9 billion. The number of projects underway in the other GCC countries account for a total of AED 42.12billion in value," reported The Economic Bulletin published by Dubai Chamber of Commerce and Industry (DCCI) citing a study by the Abu Dhabi National Exhibitions Company.

It is estimated that the new developments will attract more than $80 billion in investments in the next five years. In 2005, UAE accounted for 64% of the total value of new projects under construction in the GCC.

Statistics from Dubai Land Department reported a drop on the total number of land deals from 2,783 in 2004 to 2,494 in 2005 whereas the total value of land sales surged from approximately AED 12 billion in 2004 to AED 16 billion in 2005.

This, the bulletin said, suggests that the majority of these landpurchases were of a higher value despite the fewer the number of land deals. It also suggests that these purchases were made by high income earners and investors.

The freehold law issued in early 2006 for properties in Dubaienables expatriates to 100 per cent ownership rights to properties in areas designated by the ruler of Dubai, where as GCC nationals may own property anywhere in the emirate.

The DCCI's newsletter considers the number of duplication of property projects being made available in the GCC as a major concern.

The current boom in the UAE real estate sector and specifically in Dubai can be attributed to its political, cultural and financial stability within the region. The Dubai real estate market has managedto attract a majority of high end investors from the GCC, Indian sub-continent, Europe and US, according to the bulletin.

With the population on the rise in the UAE, both nationals and immigrant workers, and the lack of available property units, rental prices soared by an average of 38% in Dubai to 70% in Ajman in 2005. And, with the completion of the proposed projects in the UAE and the change in the investment patterns of the population,it is imminent that prices may stabilize or even fall thereby graduallytransforming the market from an investors' market into a buyers' market.