The property market in the UAE is set escalate to unprecedented levels over the next seven years.

Recent reports indicate that huge growth in population is expected due to a forecasted increase of 2.1 million residents by 2010 and the rising number of tourists visiting the UAE will trigger demand in both residential and hospitality sectors. As many as 45 new five and four-star hotels are coming up across the Arabian Gulf region in the next three years.

Dr Mohammed Raheef Hakmi, chairman, Armada Group says: "While banks offer much smaller returns on deposits at present, investors in real estate have reaped far higher benefits, making use of an opportunity to park their funds in this lucrative sector. This is because investors have realised that real estate offers a safe return and sustained appreciation in market value in a place like Dubai and the UAE."