Dubai investors diversifying in Asian luxury properties

However, although far from being saturated, industry observers say that it is no longer a necessity to consider the UAE as the only basket for well-calculated, profitable ventures.

Seasoned property enthusiasts are already venturing beyond the borders to new markets with budding opportunities, and some not-so-new ones that have been in a league of their own.

Although mostly institutional investors until now, Middle Eastern individuals are increasingly looking towards the Indian Subcontinent and the Far East for new frontiers.

Ong Chih Ching, co-founder and Managing Director of Singapore's Hayden Properties, said that the Middle East, particularly the GCC, is an important market for ultra-high-end property developments. Hayden, a joint venture between KOP Capital and Emirates Tarian Capital, a unit of Emirates Investments Group, is developing The Ritz-Carlton Residences in Singapore's exclusive Cairnhill neighbourhood.

"Even with the global uncertainty surrounding the U.S. economy, Singapore's property market set new records last year. We at Hayden Properties are very pleased that our flagship development, The Ritz-Carlton Residences at Cairnhill, still managed to be the most exclusive luxury property in Singapore," said Ms. Ong.

Singapore has proven to be fertile ground for a strong property market, with record levels of investment activity in 2006 and 2007. Economists and market watchers anticipate strong demand levels through 2008 and 2009, with many expecting expansion all the way through the first quarter of 2010.

With trade between the UAE and Singapore increasing by over 50% between 2004 and 2006, reaching in excess of $30bn according to Singapore's Economic Development Board, businesses and individuals based in and visiting Dubai are bound to have more interaction with Singapore as a destination for work and pleasure.
The Ritz-Carlton Residences, Singapore, Cairnhill - a 36-storey tower offering 58 condominiums, including two penthouses - is the first branded luxury residential development of its kind in Asia. In December 2007, a 4-bedroom apartment within the development was sold at approximately $5,200 per square foot with top floors said to have an asking price of approximately $5,700.

In an exclusive, invitation-only road show planned for next week, The Ritz-Carlton Residences in Singapore is targeting a particular niche of long-term, premium property investors with an eye for high-end service. "Our clients tend to be high net-worth individuals who plan to live in this kind of property for some time.

This entails a relatively medium to long-term investment, and this stability is reinforced by the premium brand associated with The Ritz-Carlton Residences," added Ms. Ong.