Sky-high expectations • Chapter summary
here are currently over 15,000 projects in the UAE estimated at USD791 billion, making it the second-largest project pipeline in the region after Saudi Arabia. Despite the perceived slowdown and falling property prices mainly driven by oversupply, some experts believe the market has the ability to absorb the growing supply, as demand will pick up prior to Expo 2020. A series of regulatory changes such as the golden card visas offering a 10-year residency and work permits for freelancers will no doubt inject demand into the real estate landscape.
PNC Menon, Founder and Chairman of Sobha Realty, has great confidence in Dubai’s ability to absorb more people Dubai’s long-term growth in the real estate sector. Founder and Chairman of DAMAC Properties Hussain Sajwani adds, “The relationship between real estate and the economy is symbiotic. When the economy performs well, we see an uptick in real estate transactions. Conversely, a boost in investments in the property market activates other sectors of the economy. Dubai’s real estate has been a vital aspect of the UAE’s non-oil economy, bringing investments from all over the world.”
Though Dubai is credited with creating one the region’s most diversified economics, infrastructure and real estate account for one-quarter to one-third of GDP growth. Understandably, a downturn in this segment has raised concerns, but this must be put in a broader, deeper context. In a sector accustomed to more than a decade of double-digit growth, rebalancing is a necessary phase. And to be sure, many stakeholders—those who are agile and quick to adapt—see a wealth of opportunities.
Buoyed by Expo 2020, the infrastructure and
Treal estate market is also heavily leaning into digitalization and technology, whether that be 3D modeling in the design phase, digitizing property management services, or everything in between. For Azizi Developments, digital transformation was the cornerstone of their recent restructuring and a new focus for a more customer-centric experience. Proptech is a growing emphasis for Colliers International with its Proptech Accelerator program, a global Colliers initiative working to development start-ups in the real estate space. John Davis, CEO MENA Region of Colliers International, notes that the rise of proptech and digitalization across sectors is a boon particularly for coworking spaces, as workforces become less tied to conventional office spaces.
Also reassuring the sector are several record-breaking projects, the likes for which Dubai is best known. Several of our interviewees are involved in the Dubai Creek Tower, set to be the tallest building in the world. In typical Dubai fashion, the sector has risen to the many challenges already posed by such a feat, because when Dubai sets its mind to something, it delivers. Nowhere is that more apparent than in the infrastructure and real estate sector. Sajwani captures this sentiment: “Dubai’s majestic skyline and real estate infrastructure inspire people from all over the world. For over a decade, the city has become synonymous to larger-than-life buildings.” Housed in these impressive buildings are increasingly connected communities, enriching the soul of Dubai, which is much attuned to Ithra’s ultimate mission of connecting people. More and more, infrastructure and real estate is not about providing houses, but creating homes. ✖