_How is Dubai planning its future?
For more than a decade Dubai’s success story has been built on being the biggest and brightest; the world’s tallest tower, the largest indoor ski slope, the busiest international airport.
January 10, 2018
However since the Global Financial Crisis of 2009 and the more recent slowdown in global economic activity, Dubai has seen a shift in its strategic direction. Over the past couple of years policy makers have focused on creating a more sustainable and purposeful city, one that is here to stay.
Indeed Dubai’s future strategy is based on holistic dimensions with the people and society at its core. Prosperity, diversity, tolerance and multiculturalism are only some of the headlines that underlie the emirate’s new developmental direction; elements that continue to attract a wide range of nationalities to live, work and invest in Dubai.
On the ground, improvements to Dubai’s infrastructure are taking shape rapidly. The Dubai Canal project, due for completion in 2023, is expected to add approximately 200 waterfront homes and an array of new food and beverage offerings and entertainment facilities. Similarly, plans to position Dubai as one of the worlds most connected cities are underway. The Smart City project will use The Internet of all Things’ to increase communication and intelligent connection between people, data and devices.
Furthermore, Dubai has also established spaces fostering creativity. With phase one already completed and phase two completing in 2021, Dubai Design District will be the center of the city’s creative community supporting the growth of the local design industry.
"What do all these and other innovations have in store for Dubai’s residential market?"
While the recovery in 2014 fueled rumors of a potential housing bubble, the authorities were quick to react by introducing a range of cooling measures. Coupled with the realization among developers of the need to phase out supply in line with demand, Dubai’s residential market managed to weather the storm and maintain its stability.
Today, and as the economy opens up in the face of new industries and new talents, demand continues to grow, particularly for off-plan property. Downtown Dubai continues to be a popular location given its proximity to the emirate’s Central Business District and the vast range of entertainment and lifestyle amenities on offer such as The Dubai Mall and Dubai Opera.
Both occupiers and investors continue to be attracted to the unique offerings on the Palm Jumeirah, supported by luxury hotels and resorts. We anticipate this demand will only continue to strengthen with the introduction of The Pointe and Nakheel Mall, which are expected to be competed in 2018, offering world-class entertainment, dining and retail destinations. For lifestyle opportunities, residential communities such as Emirates Living and Arabian Ranches are popular amongst investors as they offer integrated solutions to living including schools and community malls.
With Expo 2020 almost two years away, experts are estimating the the event will generate approximately 300,000 direct jobs and up to a million indirect jobs. An increase in the workforce will subsequently result in greater demand for housing. Already a range of affordable and luxury properties are under construction to cater to diverse foreign and local appetite..
As Dubai continues to cement its reputation as a thriving global business, tourist and retail hub, the real estate sector and particularly the residential market is expected to thrive and continue to be an integral part of the economy.
Knight Frank has a wealth of insights into the residential market, for more information contact Maria Morris