Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai, has long been committed to showcasing Dubai's ultra-modern city image through the construction of skyscrapers. Since the year 2000, the Dubai government has launched a series of large-scale development projects, significantly boosting the local real estate market and propelling Dubai to become one of the fastest-growing cities in the world. In many areas, when looking up at the sky, one can see not only the clear blue horizon but also the frequent sight of towering cranes.

In 2002, the UAE amended its laws to allow non-citizens to purchase real estate in Dubai (excluding land ownership). Foreigners could acquire either freehold ownership or 99-year leasehold rights in designated areas through registered companies. This legislation attracted a large influx of foreign residents and capital into Dubai. It is estimated that investments from Iran alone exceeded USD 200 billion. The first residential community legally owned by foreign nationals was Emirates Hills—a villa neighborhood featuring greenery, fountains, and lakes—developed by Emaar Properties.

Additionally, Dubai-based investors have actively expanded their presence overseas by acquiring large amounts of real estate in major international cities such as New York and London. Notable examples include the 2005 acquisition of the building at 230 Park Avenue in New York City (Helmsley Building), as well as the Essex House located on the southern edge of Central Park.

Prior to January 1, 2018, Dubai was a tax-free city. The introduction of a 5% value-added tax (VAT) thereafter marked a significant shift. During its tax-free era, high demand for housing and limited supply led to skyrocketing rental prices. Although, by royal decree, average salaries increased by approximately 15% annually prior to 2006, the uncontrolled rise in rent was still considered a potential risk to economic development. Furthermore, Dubai’s real estate legal framework remains in a developmental phase, with regulations and systems not yet fully stabilized.