 |
Is Dubai Getting Over-stretched?
Author: Pankaj Mohan  | Posted: 12-08-2007 | Comments: 0 | Views: 13 | Rating: (50)  (?) 
Dubai's bullish economy might be creating ripples across the world, but there is a suspicion among some pundits that it might get over-stretched in the longer run, in its attempt of gaining invisibility. The policy of developing world-class infrastructure to entice investors, entrepreneurs and tourists might be proving successful as of today, but it has also resulted into soaring real estate rates and city congestion in the recent times. This may result into some highly expensive office and living accommodations in a few years from now. Dubai hotels and Dubai apartments, a key area for the local tourism industry and economy, might get hit hard due to sharp price hikes in the future.
Dubai's office blocks are quoted as the most expensive ones across the Middle East, and the scenario won't change until many upcoming projects got fully commissioned. There is a growing concern that many existing and prospective buyers might decide to look out for cheaper alternatives elsewhere, within the UAE and outside, both. Many commuters working in Dubai have to spend up to three hours making a round trip from Sharjah. It's simply out of question for them to reside in a lavishly expensive Dubai. To add to their woes, the public transport system and routes are highly overloaded. Many steps initiated by the city planners to minimize road congestion haven't produced results until today.
The desire of having the tallest and largest buildings and the fastest growing economy on its soil has led Dubai into a construction mania. Up to 25% of all construction cranes in the world are currently stationed at Dubai. At least fifty of them are employed at Burj Dubai alone to help it rise atop the Arabian sky as the world's tallest building. Burj Al Arab, the pride of Dubai hotels, is already known to be the world's largest hotel. There are numerous projects either under way or in the pipeline that could leave even some leading cities of the West dwarfed. This might highly raise Dubai's real estate rates however, driving away many prospective buyers in a few years from now.
According to a recently issued report by the Middle East Economic Digest, the cost of Dubai's planned and under way projects is expected to total around $310 billion over the next decade. Up to $230 billion of this capital is expected to go in the property sector alone, indicating at the frenzy about to be unleashed therein. Prices might naturally fall down as a result, once many of the underway construction projects got completed in the longer period. This might tilt the demand-supply ratio in the favor of the latter, making Dubai to be the cheapest destination across the Middle East, say about in a decade from now. You might have to cope with some of the cheapest office blocks, Dubai apartments and hotels, as a result, in the longer run. Dubai apartments are greatly admired across the Middle East for their class, aura and style, and are always in a great demand. Any future fall down in their rates could severely affect the emirate's economy as well, and that a major concern.
Dubai is a city of free-trade, world famous landmarks and soaring dreams. The hospitality extended by Dubai hotels and apartments is universally acclaimed. Investors, travelers and entrepreneurs from across the globe are lining up to be part of its success story. Any misadventure by its own planners could result into serious concerns in the future however, and that's why some kind of regulation should be placed from within the policy-making elite itself.
Rate this Article:
Current: 0 / 5 stars - 0 vote(s).
Article Source: http://www.articlesbase.com/real-estate-articles/is-dubai-getting-overstretched-197149.html
About the Author:Pankaj Mohan is an India based freelance writer, who often writes on behalf of DubaiFurnishedApartments.com. Please visit this site to get more information on self-catering Dubai apartments and Dubai hotels.
|
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free! |
|
Related Articles
Dubai's International Property Show
By: Pankaj Mohan | 12/08/2007 | Real Estate
Middle East to be a Knowledge Hub
By: Pankaj Mohan | 18/07/2007 | College and University
Uae's Lady Achievers and Newsmakers
By: Pankaj Mohan | 18/07/2007 | Women's Issues
Where is Dubai Headed From Here On?
By: Pankaj Mohan | 15/11/2006 | Travel
Travel related articles, including flight destinations, hotels and special tours.
Dubai Marina - the Heart of Uae
By: Pankaj Mohan | 17/11/2006 | Travel
Travel related articles, including flight destinations, hotels and special tours.
What is the Correlation of Free Trade and Holiday Making?
By: Pankaj Mohan | 18/11/2006 | Travel
Travel related articles, including flight destinations, hotels and special tours.
Dubai Can Be Real Hot and Cool Both
By: Pankaj Mohan | 19/11/2006 | Travel
Travel related articles, including flight destinations, hotels and special tours.
Why is Dubai Swarmed By Celebrities?
By: Pankaj Mohan | 20/11/2006 | Travel
Travel related articles, including flight destinations, hotels and special tours.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Recording
By: herman_maiden | 29-10-2007
How to dub an 8mm camcorder tape to vhs tape?
Q&A Powered by: 
Latest Real Estate Articles
Investment in Dubai
By: Editor-123 | 11/10/2008
Now, even the foreigners can easily invest and can take active participation in the capital investment in this ever-growing market of the Dubai properties. Amidst the glasslike towers along the vast sea, Dubai promises increasing returns for its investors.
Profit From the Foreclosure Boom Through Powerful Foreclosure Training
By: DCFawcett | 11/10/2008
When real estate investors evaluate their options for what types of properties to invest in, some of the first things that come to mind are preforeclosure, real estate short sales, and other types of foreclosure properties. This tendency is a natural one. After all, sellers facing foreclosures are naturally going to be more motivated and that is what most investors are looking for.
Historical City of Apulia
By: Priya Singh | 11/10/2008
Apulia is "mare e terra", sea and land, a world of rich contrasts. The varied coastline and the hinterland with its cultivated farmland; the tranquil small towns and its cultural treasures.
Hawaii Homes and Volcanoes for Sale
By: Hedin Johan | 11/10/2008
Volcanoes can be found it most parts of the world and Hawaii is no exception-the beauty and lush landscape that comes with volcanoes is literally out of this world. When I suggested a few friends of mine to go visit the islands, I didn’t realize they’d come back with more than they’d bargained for.
Find Hawaii Homes for Closure and Profit
By: Hedin Johan | 11/10/2008
When we talk about the homes that are up for foreclosure, it really does seem like these homes and their families are closing down for good.
Find Great Investments From a Professional Real Estate Company in Hawaii
By: Hedin Johan | 11/10/2008
Real estate in Hawaii is what dreams are made of. Some would love to live there, some would just simply invest there but for others, it’s a place to die for.
Tips to be a Property Buyer
By: Editor-123 | 11/10/2008
Are you planning to buy a retail property? You can own your dream property by following some simple steps. Don’t worry about the long period for the planning and preparation. Usually it may take many months or even a few years. Don’t worry or get discouraged. The time taken is worthy of pursuing your goals.
Using an Agency to List Your Orem Real Estate
By: Art Gib | 10/10/2008
When people decide to sell their home, they often turn to an agency or a brokerage for help.
More from Pankaj Mohan
Dubai Freehold Properties - Smart Way to Invest Money
By: Pankaj Mohan | 07/08/2008 | Real Estate
One should buy freehold properties in Dubai to earn money, as this article suggests. Dubai's strong fundamentals indicate its real estate will continue to grow on in the years to follow.
Why One Should Think of Living in Kefalonia
By: Pankaj Mohan | 24/04/2008 | Real Estate
Kefalonia is widely known for its sea resorts, mountainous landscape, ancient monasteries and a thriving countryside, thus making it out the most sought-after destination for the holidaymakers and property buyers both, as this article might suggest.
Buying Holiday Homes in Greece
By: Pankaj Mohan | 24/04/2008 | Real Estate
Greek tourism has always enjoyed a key global role, but the European state is also witnessing a much desired real estate boom these days. Read, which one are the factors that might be leading to such property boom there.
The Captivating Greek Island of Crete
By: Pankaj Mohan | 14/04/2008 | Destinations
This article tries to find out what makes the Greek island of Crete so special in the eyes of world, and what significance does it enjoy historically and from the tourism point of view.
Cretan Tourism - Some Markets Lost, Some New Garnered!
By: Pankaj Mohan | 14/04/2008 | Destinations
Read how the globalization is changing the face of world tourism, and how new markets are emerging up and some older ones fading away in the new world order. This article speaks about the new challenges being faced by the Greek island of Crete.
The Flora and Fauna of Greek Island Crete
By: Pankaj Mohan | 14/04/2008 | Destinations
The Greek island of Crete carries a very rich flora and fauna for those who might be seeking to spend some time in the nature's arm, as this article goes on to describe about it.
Burj Dubai's Towering March
By: Pankaj Mohan | 05/04/2008 | Destinations
The world's tallest man-made structure, Burj Dubai, is on its way to achieving completion, but there is a lot more to be explored apart from it, which should make your stay in Dubai be a very special one.
Dubai Encroaching Upon Its Own Desert
By: Pankaj Mohan | 27/02/2008 | Real Estate
Dubai's growing landscape raises a serious question. Will its ongoing expansion completely overshadow its geographical map? Will there be no more free land left to walk around, once the real estate frenzy had died down?
|
|
Finance 
