Abu Dhabi

Often in Dubai’s shadow, although with a far healthier bank balance, the largest of the emirates, and the UAE capital, has given its famous neighbour a run for its – property - money.

Robin Teh from Chesterton Humberts International’s Abu Dhabi office (www.chesterton.ae) comments:

“Although property prices in Abu Dhabi might not be much cheaper than those in Dubai, the shortage of available property in Abu Dhabi has kept rental returns relatively stable and thus more attractive to UK buyers.

“The enormous infrastructure and facilities investment in Abu Dhabi over the past five years has caught the attention of international buyers and this Emirate now rivals Dubai as the top destination in the UAE. Developments such as Saadiyat Island, which will include a new business district, waterfront homes and a variety of hotels as well as a selection of museums, and Yas Island which will feature hotels, theme parks and a new Formula One race track are set to change the face of Abu Dhabi. 

Ajman

This tiny emirate is located a 45-minute drive north of Dubai, as was the second emirate to offer freehold property. It is also the only state to offer 100 per cent ownership of residential property to people of any nationality.

The biggest investment drive is likely to come as a result of bourgeoning tourism levels, which is proving increasingly important to the economy. The emirate plans to open up air traffic in order to cater for long-haul flights, with Ajman international airport set to open in late 2012, with the capacity to handle one million passengers a year.

Dubai

The original Middle Eastern hotspot to first experience the boom, does oversupply of property means that it’s now all over? In 2006, Dubai passed Freehold Law No 7, which allows non-GCC nationals to own property within designated areas either in the form of freehold or a 99-year lease period. Prompting a flurry of foreign investment.

For those who have enough cash to splash, and lead a designer lifestyle, for £3.2 million you can treat yourself to a bit of haute couture at the Palazzo Versace Dubai.

According to the latest research from Jones Lang LaSalle “Average prices and rentals in Dubai’s residential market both appear to have stabilized over recent months.  While performance may continue to decline in some areas in 2010, this is likely to be driven by local factors (particularly the addition of new supply), with other areas experiencing little further decline in rents and prices in 2010.”

Fujairah

This is the only Emirate lying on the Gulf of Oman, to the east of the country, as well as the only one to be totally mountainous. Fujairah has experienced very little of the property-induced inflation that has swept across the rest of the country, and the reason why residential property is somewhat scarce here is because the city has chosen to focus its development efforts on resorts instead of pure residential property.

Homes for sale here are much more affordable than other parts of the UAE and offer a different kind of lifestyle. The education system is good and there is little crime to speak of, although you won’t get the glitz and gold that’s on offer down the road.

Ras al-Khaimah

Arguably the least developed of the Emirates, the area has tremendous potential for growth putting increasing pressure on the property market. Taking on board lessons learnt in Abu Dhabi and Dubai, Ras Al Khaimah is establishing a very stable growth environment likely to offer substantial returns to investors

Rob Gulliver, from The First Group (www.thefirstgroup.com) said: “Ras Al Khaimah is rapidly becoming the investment destination of choice in the UAE for savvy international property investors and holiday home buyers alike.

Huge natural resource, beautiful scenery and miles of unspoilt beaches combine with a strategic location and established trade zones to make the region a tourist and trading hub.”

Sharjah

Sharjah was once the most prosperous of the Arabian Gulf emirate states. It held a strategically important position on the ancient shipping routes where the Arabian Peninsula juts out at the entrance to the Arabian Gulf, and had a lucrative pearl diving industry.

The first emirate to offer property on leasehold to GCC nationals, it is perhaps not an ideal investment for the more liberal westerner, as it is governed by sharia law.  The interaction between unmarried men and women is illegal, and Sharjah is the only emirate in which the sale, possession and consumption of alcohol is banned. It also maintains the strictest decency laws in the UAE, introduced in 2001, with a conservative dress code required for both men and women

Umm al-Quwain

Fast becoming a year-round holiday destination and favourite rest and relaxation spot for neighbouring UAE residents, Umm al-Quwain benefits from unspoilt beaches and several virtually untouched islands. Al Salam City, is due to be completed in 2020, and will be an integrated residential and commercial project.

The AED 30 billion (US$ 8.3 billion) freehold development will be located along the Emirates Road and will cover an area of 20.5 million square metres. Al Salam City is being built to accommodate half a million residents and every apartment and villa cluster will have its own access to a private park, swimming pools, children's play areas and nurseries.