Dubai needs additional 1,000 hospital beds before 2022
Dubai would need at least 1,000 hospital beds or seven new hospitals over the next five years to keep pace with the growing population and meet the global standards in the healthcare sector.
This was the point raised by Craig Plumb, head of research, Mena — JLL (Jones Lang LaSalle), at the Cityscape Global 2017 at the Dubai World Trade Centre recently.
JLL published a report, called ‘Healthy Returns’, highlighting the opportunities for investors and other real estate players in the healthcare market across Middle East and North Africa (Mena) over the next five years. Speaking to Khaleej Times, Plumb said: “At present Dubai has 2.1 hospital beds for every 1,000 residents. This is way below the target of achieving the OECD (Organisation for Economic Co-operation and Development ) average of 4.8 beds per 1,000 people. (OECD is a group of high-income economies with a very high hman development index and are regarded as developed countries).
“With the current shortage of hospitals, clinics and other healthcare facilities, an ageing population and the rise of medical tourism,
With the Expo 2020 coming up, buying property towards more in-land areas would be a good investment for my future to revolve around the city of tomorrow. Dubai has always had the habit of thinking one step ahead and having spent most of my youth here, I’ve picked up on that trait as well. Dubai South is that plan for what comes after Expo 2020 and I’d like to get into it now.
The strong demand and current shortage of hospitals, clinics and other healthcare facilities makes this one of the most attractive sectors.”
Craig Plumb, head of research, Mena — JLL Real Estate Services
If my office was 15 minutes away from any of these areas, then yes, I would certainly consider moving. I don’t enjoy driving in Dubai, especially during peak timings, so staying within close proximity to my workplace would be my ideal choice. With the new, affordable properties coming up in south Dubai, that might a possible area of residence for many like me in the near future.
there is a pressing need for additional healthcare facilities in the region over the coming years.”
A marked shortage in hospital beds is prevalent in the region. According to JLL, the Mena region is lagging behind more developed economies in terms of per capita spending on healthcare and provision of hospital beds. The per capita spending on healthcare in the UAE is only 17 per cent of what is being spent in Switzerland, and Mena has an average of only 1.9 beds per 1,000 population in comparison to an OECD average of 4.8 beds.
“The region has an ageing population — the number of people over 65 years is predicted to increase by 4.4 per cent in the next five years. To maintain the current provision rate of hospital beds per person would require 10,500 additional hospital beds in the five major cities across the region over the next five years which equates to 70 additional hospitals,” the report noted.
“The strong demand and current shortage of hospitals, clinics and other healthcare facilities makes this one of the most attractive sectors of the Mena real estate market for investors, developers and contractors to consider over the next five years,” he said. According to the report: “To increase the provision of hospital beds in line with the current OECD average of 4.8 beds per one thousand people, a staggering 470,000 additional beds would be required, which equates to 3,130 new hospitals.”
Plumb noted that returns from traditional sources such as residential, retail or hospitality are falling and that opportunities from healthcare real estate is more stable and secure in the long run. “Real estate developers cannot operate hospitals and similarly hospitals are not property developers, but the two skill sets can be combined to address the growing need in the health care industry.
The per capita spending on healthcare in the UAE is only 17 per cent of what is spent in Switzerland.