By Reena Daniel
Property Valuer – Land Sterling
The UAE Vision 2040 has unveiled an ambitious and yet another record-breaking master plan to leverage Dubai as the ‘best city’ in the world. With an urban plan that encompasses creating larger green spaces and inclusive communities that enriches culture, the UAE Vision 2040 aims to bring a positive paradigm shift to the UAE’s real estate industry.
Green Spaces as a Key Driver to Residential Property Values
Dubai’s continuous emphasis on creating innovative development plans has always placed the emirate at the forefront of its contemporaries. The Dubai 2040 Urban Master Plan is yet another assertion to the government’s vision to reinforce Dubai as the major investment hub in the region.
With an emphasis on building sustainable communities, the 2040 Urban Master plan visualises an emirate that promotes an improved quality of life. As people grow more conscious about the need to have green spaces and healthy living, the master plan envisions communities built around efficient, innovative and holistic living experience for residents. The new vision is bound to change the concept of Dubai as a concrete jungle and rather a more sustainable and still dynamic city that will enhance its resident’s way of living.
As the emirate moves into a more sustainable global hub, the residential real estate industry grows with it. Green spaces and an enhanced living experience in the emirates are envisioned to encourage demand and drive residential property values positively. With these new developments and still preserving the prevailing urban areas, Dubai’s property market is set to offer unique environment-friendly prospects to present and future investors alike.
Investing in Tourism and Hospitality to Support Future Business Needs
The Vision 2040 Urban Master Plan recognizes the importance of fostering greater economic activity and drawing foreign direct investment. As such, a key part of the 2040 master plan is to invest in tourism and hospitality to attract investors and support future business needs. Under the new plan, the land area used for hotels and tourist activities will increase by 134 per cent. The land used for commercial activities, like shops and restaurants, will also grow to up to 168 square kilometres on top of the existing land area.
This focused approach will ensure that the existing and planned new developments will be executed efficiently to increase overall occupancy levels and return-on-investment (ROI) for all stakeholders.
In conjunction, we can also anticipate a range of other initiatives to help support investment and growth in prime sectors such as tourism and hospitality. Along with enhancing infrastructure to serve an increase in demand, the government is also set to integrate new technologies such as AI to support future business needs. Sustainable developments are expected to create exciting opportunities for new companies and business models.
Bringing Into Spotlight the Older Areas of the City
Most prime cities around the world have adopted an urban development framework that embraces its pockets of cultural heritage and grows it alongside its modern development. With a focus on regenerating older areas with new developments, communities of historic and cultural importance are nurtured and transformed into holistic places.
This new initiative will help make older areas such as Bur Dubai and Deira attractive and great places to live in. With the right balance of infrastructure and amenities targeted towards Emiratis, the local population will help retain and celebrate the rich cultural legacy that Dubai has.
Utilizing Existing Supply Efficiently
While the government is looking forward to developing new communities, existing ones will not be left to wither. The government is envisioning about a 76 per cent increase in population between this year and when the plan comes into fruition. Meaning, there must be some change or improvement to accommodate this population growth.
The stability struck between preserving existing urban areas and supporting new sustainable developments through infrastructure and planning reforms will positively affect Dubai’s property market. The existing supply must be used well to ease the supply and demand in the market. Therefore, the development plan must consider this and need not be restrictive. It must also be executed well so that both the current and new stock is absorbed well.
Learning from the pandemic, the real estate industry must ensure that development plans are well planned and built to suit the newer generation. Amid the pandemic last year, Dubai has established a high-level committee to bring balance in the supply and demand while the Central Bank of the UAE discussed with local lenders to allow a flexible cap on real estate financing. Policies that revolve around crises like these will be key determiners as the industry balances the supply of existing and projected stock.
The Future Looks Green and Bright
Out of all the plans in Vision 2040, the most exciting prospect for the real estate industry are the green innovations that will lead to a more sustainable Dubai. At the core of Vision 2040 is the desire of the government to enhance its residents’ comfort and quality of life. In doing so, all the economic growth will soon follow.
Dubai has successfully transformed itself from a humble country into a major finance and investment hub, not just in the region but in the world. Part of its success is the government’s inclusive development plan: investing in infrastructure advancement whilst ensuring the quality of life grows alongside its urbanization.
With Vision 2040, the environment and the people who live in the emirates are the focus of this new development plan. Innovation will centre on enhancing the quality of life and sustainable development.
Green spaces and recreational areas will be developed and are expected to double in size. Nature reserves and rural areas are forecasted to constitute more than 60 per cent of the emirate’s total land area. Several green corridors will be established to link service, residential and commercial areas. Pedestrian movement, bicycle lanes and other kinds of sustainable mobility will be promoted and public beaches will increase by 400 per cent.
The plan also involves developing sustainable communities that blend leading technologies with green spaces that will both meet the needs and improve individual well-being of residents. By enhancing the quality of life for its residents and investors, Dubai envisions a future that is inclusive, green and bright.
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