Business | Construction
Dubai really is a city for the future
As a work in progress, I feel confident the finished product will be something very special, not only in terms of the great projects and developments, but in terms of its level of appeal from all angles.
- Special to Gulf News
- Published: 00:30 May 2, 2008
When speaking about Dubai and the so-called "real estate bubble", conversations tend to focus on the short term. "What will happen in 2009-10 when projects are completed and handed over - will prices level off or even worse, fall?"
I can remember back in 2004 when people were asking those very same questions. The truth is at that point, nobody could have imagined what was to come and how far away from reality those concerns would prove to be! Since those early days of unpredictability, Dubai has gone from strength to strength.
That's why when it comes to Dubai; I prefer to look at the bigger picture. Rather than focus on the next two years, I think more in terms of decades and although it's a great place to be right now, I believe that Dubai really is a city for the future.
As a work in progress, I feel confident the finished product will be something very special, not only in terms of the great projects and developments, but in terms of its level of appeal from all angles; an international business centre, a leading tourism destination, a lifestyle city of choice, all helping to secure its long-term sustainability.
In the past, people have compared the Dubai market to markets like Spain, which also experienced a dramatic growth period, particularly with the sale of holiday homes. However, the reality is that Dubai has a completely different offering from those markets because its evolution is part of a greater dynamic; the entire region is developing.
One of the incredible things about Dubai is that the growth to date has been based on promises alone. It's only now that we are starting to actually see delivery.
The Dubai Government has committed to building the infrastructure of a modern city and we can already see improvements in terms of better road networks, the Dubai Metro and Dubai World Central. All such measures will ensure Dubai becomes a major transport centre for the region and a hub for businesses entering the growing consumer markets of the Gulf Cooperation Council (GCC), India and the greater region.
Global destination
The population is also set for rapid growth over the next few years and as a part of that, we may see an increase in migration from the US and Western Europe in response to the current financial climate in those countries.
Additionally, as projects such as Dubailand, Dubai Sports City and The Palm trilogy move forward, Dubai's reputation as a global tourism destination will be further enhanced.
The point is that you need to consider Dubai's global position in 15-20 years. At that point, it will be a city with a very large population and one of the most sophisticated infrastructures in the world, and by far the best in the region. It will be inter-connected to the rest of the world through trade, finance, logistics and tourism in a way that no other city is.
Through its infrastructure, services, lifestyle and global connectivity offering, it will become pivotal to the business success of regional and global markets.
For example, a major company in the US using Dubai to distribute tyres to the Middle Eastern and Asia sub-continent region, accounting for 40-40 per cent of its overall revenue, would base all its support services here and Dubai would play an essential role in its success. When you replicate this scenario over thousands of companies, Dubai becomes a very durable and robust marketplace.
So, even with a slow down in the property market, there wouldn't be any burst bubbles because real estate is simply facilitating the logistics, distribution and transport industries that are the true long-term engine behind Dubai's economy.
The writer is managing director of Better Homes.
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