Developments on track
An opera house, a planetarium, 13 new parks, an Aladdin-themed city - Dubai has some major projects in development currently. While a complete list is expected soon from the Dubai Municipality, it's apparent that there are quite a few in number. The emirate has taken things to the next level as it gears up to host the Expo 2020 and construction is moving full steam ahead. Two new attractions - Desert Safari and Dubai Frame - are expected to be completed and opened this year.
Developers have also announced that most of their projects are on schedule. Union Properties will be starting work on the AED1.1 billion The Vertex project by early next year. It is also working on an AED430 million residential project to build four new buildings in Motor City.
In the midst of all this new development, there is also growing awareness of the gaps in the market. "It has become extremely challenging for 'single-income families' with one or two children and in certain occupations to come upon an affordable two-bedroom apartment in Dubai," according to analysis by ValuStrat Consulting, an advisory firm.
There is also a greater understanding that in order to address this problem, government-backed incentives have to be offered to developers to encourage them to explore the affordable housing market. These incentives can be monetary but also in offering public land at below-market prices.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. Despite growth slowing down in Dubai, construction is booming. Analysts agree that the emirate is not going to witness any significant price correction as demand remains strong. "People are continuously being attracted to the emirate," says Sobha Group Vice-Chairman Ajay Rajendran. "So why should someone say there is a 'big' correction around the corner if your apartments and villas are being occupied by users?"