Scaling new heights
While Dubai seems to have witnessed a slowdown when it comes to its real estate market, the emirate is still busy rolling out new projects that continue to make headlines.
Over the past week, it announced a new world record with the Burj Khalifa introducing 'Sky,' a new observation deck that is said to be the highest in the world. This sets a new record above the Canton Tower in Guangzhou, whose observation deck stands at 488 metres.
Meanwhile, as it gears up for the Expo 2020, Dubai is also set to introduce trams, emulating cosmopolitan cities such as New York, Toronto, London and Hong Kong. "Infrastructure enhancement and the growth in the public transport network will definitely have an impact on the real estate sector," says Simon Gray, managing director, Chestertons MENA. "The proximity to high-capacity transit halts has proven to increase property rates, a phenomenon known as the 'transit premium.' The tramway is definitely going to add significant value as it is potentially poised to change the dynamics of the property prices by making it more attractive."
As for upcoming developments, the emirate continues to focus its efforts on ensuring that it doesn't repeat its mistakes from the earlier market crash. The Dubai Properties Group (DPG), the real estate development arm of Dubai Holding, has assured that it has funds in place for all its upcoming projects. "Despite sales or not, we will go ahead with these projects," said Mohammad Al Habbai, chief officer for urban planning and infrastructure.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. Over the past few months, it has become quite apparent that Dubai has turned all its attention on developing infrastructure to enhance the city ahead of the Expo 2020. At the same time, it is also becoming increasingly clear that the rampant increases from earlier this year have slowed down considerably this quarter with the market continuing to witness greater stability. It has to be noted that the regulatory environment is much stricter for both developers and buyers as Dubai continues to evolve, emulating cosmopolitan cities elsewhere in the world.