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The new 2040 Urban Master Plan, which seeks to make Dubai the world’s best city to live in, will finally address the huge housing supply glut in the emirate, according to a property analyst.
The ambitious vision that was unveiled over the weekend looks to increase Dubai’s spaces allotted for recreation, public parks and green areas, as well provide better housing options for residents and stimulate investment.
Ultimately, the quality of life will improve, more people from overseas would want to live, work and do business in Dubai, and the total resident population will grow to 5.8 million in 2040, up from 3.4 million this year.
“With the increased international demand, the oversupply situation that we see now will be eased. Population is expected to [nearly] double in Dubai, which means a population of 5.8 million will use up the housing supply,” said Ayman Youssef, vice president of real estate firm Coldwell Banker UAE.
“This plan is in line with the recent regulations Dubai has introduced, such as the golden visa, retirement visa and access to foreign investors. The improved regulations, along with the growth in infrastructure, healthcare, innovation and sustainability will lead to greater demand for housing, and places to work from,” Youssef told Zawya.
Oversupply has been a long-standing issue in the UAE’s property sector. This year, as developers are expected to restart stalled projects and launch new ones, more than 50,000 new apartments and villas are expected to be delivered across the country.
Some analysts said this could worsen the supply-demand imbalances in the market, as there aren’t enough buyers yet to meet the surge of new residential units.
New vision
There’s no clear mention of building more villas, residential high rises and skyscrapers in Dubai’s new master plan, but it does talk about “development” of five urban centres. The urban centres will include two new ones, the Expo 2020 Centre, which will feature affordable housing for residents, and Dubai Silicon Oasis Centre, the future hub for knowledge and innovation.
More people will also be concentrated in or in proximity to commercial centres, with the majority of the population (55 percent) expected to live within 800 metres from main public transport stations.
However, there will be more places to relax and enjoy, with green spaces envisioned to double and spaces designated for public beaches to increase by 400 percent.
With the new plan, Youssef said, the quality of life and lifestyle offering in Dubai will be enhanced and this, in turn, will entice more foreigners to come and settle in the emirate.
Attractiveness
“The new plan will increase the attractiveness of the country in a global standpoint. With more incoming population, more companies will want to set up in the country, will directly impact the economy,” said Youssef.
“It will also help Dubai stand out from the competition from the other neighbouring countries as everyone is trying to diversify from the oil industry.”
As for entrepreneurs, the urban centre to watch out for will be Dubai Silicon Oasis.
“[This is] expected to be the Silicon Valley of Dubai. This will attract the tech community and talent to Dubai, thereby having a positive impact on the economy,” said Youssef.
“In the 2040 plan, 168 square kilometres of land is dedicated to industry and economic activities and [the space for education and healthcare will increase by 25 percent]. This will compel the major corporations to relocated their headquarters because of the lifestyle objectives and business growth that Dubai can offer.”
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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