Dubai – The Rise of a Real Estate Giant
April 22, 2016
Emergence of a Real Estate Giant
Perhaps no other city in modern times has seen such rapid pace of development as Dubai. Over the past few decades, Dubai has seen a tremendous growth in its real estate landscape. However, not long ago Dubai wore an entirely different look. It took a futuristic vision and a spine of steel to give birth to this real estate giant.
The Journey Began with the Discovery of Oil
What first kicked off Dubai’s growth was the discovery of oil in 1966. Once oil revenue began pouring in, Dubai started to strengthen and broaden its economy. Massive infrastructure development programs were launched. The establishment of the Jebel Ali Port in the year 1979 and its subsequent development into Jebel Ali Free Zone (in 1985) was a major turning point that encouraged a number of international companies to set up business in Dubai. In the same year (1979), Dubai also saw the opening of its first high-rise – Dubai World Trade Centre.
However, there was one more challenge that Dubai had to reckon with – its limited and fast depleting oil reserves. Soon, Dubai realised that if it is to sustain its economy, it couldn’t bank on the oil industry alone. Luckily for Dubai, it is strategically located on the global aviation map. Dubai took advantage of it to give birth to its aviation and tourism industries. The year 1985 saw the launch of Emirates Airline, which in the successive years flew far and wide. Slowly but surely, international tourists started to trickle in.
Post Gulf War, a Period of Stable Growth
The year 1990 saw the Gulf War, which severely impacted Dubai’s markets. But oil prices started to soar sharply soon after the war. With this Dubai was back on track.
In 1999, Burj Al Arab opened to much fanfare. This iconic landmark often hailed as the world’s only seven-star hotel, has firmly cemented Dubai’s repute as a global tourist destination. In 2001,
construction of the Palm Jumeirah Island began.
A landmark decision
But Dubai was yet to witness another event that in reality laid the foundation of a new Dubai. In the year 2002, HH Sheikh Mohammed, by a royal decree allowed foreigners to own real estate in Dubai. This was a momentous decision that changed it all. Wealthy folks from across the Middle East, South Asia, North Africa, Russia, and UK started investing in Dubai’s newfound real estate market. Dubai became the hot cake in the radar of real estate investors.
All along the coastline housing projects began to spring . While commercial buildings started to rise along the Sheikh Zayed Road, the grand highway that cuts through the heart of the city. Dubai had suddenly become the loudest real estate market. But silencing the din of all declarations, came an announcement that enthralled the market. Dubai was to be the home of the world’s tallest tower – Burj Khalifa.
Investors, contractors and architects flocked Dubai. The allure of Dubai’s tax-free regime had always attracted visitors and businesses. But now Dubai was luring the rich and the mighty with exotic lives, nestled in extreme comfort and luxury.
The Growth March Continues
In 2009 Dubai did suffer a financial crisis but soon came out strong. It displayed incredible character to bounce back and continue its march to become a real estate giant. In the year 2010, despite odds, Dubai delivered the Burj Khalifa – the tallest man-made structure on planet Earth.
Although it is yet to attain its previous peak of 2008, it is surely on its way. Investors remain optimistic, developers remain defiant, and buyers energetic as ever. And with World Expo 2020 approaching, why won’t they be?