Even if Dubai won’t get copies of the world’s wonders and famous architectural structures in the near future, it is unlikely to lose much because of that, Matthew Green, head of research at CBRE, categorically said last week.
And there is more than one reason for this. Firstly, the "future city" has already outgrown such projects as Falconcity of Wonders, which revival was discussed last week. And secondly, Dubai has everything to attract tourists and investors even without it.
For example, a real rainforest on the rooftop in a new skyscraper. Such project named The Rosemont Hotel & Residences was presented last week to the real estate investors, but the developer preferred to remain incognito yet. It is known though, that the complex will be built on Sheikh Zayed Road in Dubai, and will include 450 hotel rooms and 280 residential serviced apartments. Although, the main attraction, a real "magnet" for investors and tourists in this project is not its properties, but a kind of a new "Gardens of Babylon" on the rooftop. It is a re-creation of the rainforest along the artificial beach around the man-made indoor lagoon on the upper floors of the complex. Thus, the "future city" will have something to compete with other modern world’s wonders, even if Indian investors refuse to finance Falconcity of Wonders, as its developer is expecting.
Knight Frank also gave a good reason for optimism last week. According to its analysts, premium residential rentals in Dubai sometimes even show an upward trend, although 0.2% annual rate of growth is the minimum since the first quarter of 2010, which rates the emirate 11th out of 18 world markets in terms of in rental prices growth.
Moreover, while there is a kind of a lull in Dubai residential real estate rental market, where the prices are almost unchanged, the actual revival is felt quite clear in other real estate sectors, particularly in the sector of office and industrial real estate. The average industrial property rentals in Dubai rose by 4% in the last six months, while office rental prices grew by 2.1% year-on-year, according to Knight Frank. Increased demand from a large number of start-ups and consolidated companies reduced the office space vacancy rates to 18% of total completed stock, the report said.
Thus, Dubai's property developers’ plans for future haven’t changed, indicating that nobody is going to stop, despite the cautions and what may seem a kind of a slowing down. In fact, stability is now the most common and accurate name for all the processes in the Dubai real estate market, including the decline in property sales volume, experts say.