Major construction activities were put on hold after the financial crisis of 2008 and it severely damaged the UAE’s realty market. Many real estate resources now claim that the Dubai property sector is out of crisis and has come back to life with a bang. real estate developers in dubai on different platforms reveal different anecdotes of this sector but the only sketch that perfectly shapes Dubai is the grandiose construction that never seems to stop here. However, in the previous few months only high profiled property projects, such as a replica of Taj Mahal (four times bigger than the original Taj Mahal), a skyscraper with nine swimming pools, and a mile long artificial canal winding around office buildings, were announced. These eye-catching developments and the ostentatious property projects are creating a buzz in Dubai. Let’s analyze the Dubai property sector with ground reality.
Launch of Mega Projects
To entice investors as well as accelerate the recovery process of Dubai’s real estate sector, a few mega projects were announced at Cityscape Global, which Dubai’s largest annual property conference. Some experts titled them as reminiscent of pre-crisis projects like Burj Khalifa and an indoor ski slope at the Mall of the Emirates, but several others welcomed this activity. The developers that flew away from Dubai after the famous property crash of 2009 are also willing to revive the construction projects in Dubai. Meydan City Crop., a renowned developer, announced to start a development that would feature lagoons, canals and parks and a skyscraper with pools and rooftop gardens.
Based on India’s Taj Mahal Mausoleum, the Taj Arabia complex will be built by a Dubai based developer Link Global Ltd. Bear in mind this development will also include a 300 room luxury hotel. By launching this mega project in the current situation, the UAE government played a key role in making the region appealing for developers. The government has also approved the construction project of a canal within the city that will connect the Business Bay area with the Arabian ocean. Because of these untiring efforts, the property market in Dubai has improved in terms of value and volume of property transactions. In addition to that, the value and rates of Dubai rent have also increased. Therefore, experts are hopeful about further improvement.
Abandoned Project Plans
A group of real estate experts does not believe that Dubai’s realty market is actually recovering. According to them, these megaprojects may be enticing for global investors but the emerging and glitzy recovery is limited to Dubai’s posh areas. As compared to pre-crisis values, the rates of residential and commercial property in Dubai have fallen as much as 65 percent. Almost one quarter of building for Dubai rent and sale are empty. More property units are in pipeline and will be completed by the year 2013, and interestingly, there is no demand for them.
Developers have launched only those projects for which they got lease while several property projects across Dubai are abandoned. The affected projects are delayed, aborted, or put on hold. For instance, Dubailand, an entertainment complex three times the size of Manhattan, was put on hold after the crises. This project has not been revived by the developer so far and the company did not announce its plans either.
Regardless of how the two groups of developers think about the future of Dubai real estate, the time is closing in to define the fate of its future.