Dubai has transformed into a city that is popular globally and is well known for its architectural innovations, luxurious lifestyle, and thriving real estate industry. Over the decades, the Dubai real estate market has seen exponential growth, with the value of properties increasing at a rapid pace, with an increment of over 500%.
This increment is directly proportional to the increasing rate of GDP and the visible growth rate of GDP in Dubai. Real estate business and its related activities contributed approximately 7.2% to the GDP growth in Dubai in 2019, with an added revenue of AED 29.4 billion, which leads to a growth rate of 3.3% compared to 2018.
Early History of Dubai
The land called “Dubai” is about 1,000 years old. The history of Dubai dates back to the early 19th century when it was a small fishing and pearling village. By the late 20th century, Dubai had established itself as a hub for trade and tourism. Thus, the real estate industry of Dubai boomed, giving a much-needed pace to the GDP of Dubai. In just a few years, Dubai transformed from a small fishing village into a city of towering skyscrapers and world-class amenities.
From nowhere to everywhere, Dubai is now home to some of the world’s most iconic infrastructural wonders, including the Burj Khalifa, the tallest building in the world, an artificial island shaped like a Palm Tree. With this continuous growth in travel, tourism, and real estate sector, Dubai attracts more than 2,00,000 people annually. Dedicated leadership and passionate vision allowed the UAE to push ahead with ambitious building projects.
Dubai Then and Now
Apart from being an amazing view to see how Dubai has transformed itself, it is also inspirational to see the positive changes that occurred in Dubai:
Dubai Marina
Dubai Marina is one of the most popular communities in Dubai. It is an artificial canal city spanning three kilometers of Persian Gulf coastline. To construct Dubai Marina, the developers developed a man-made waterfront by introducing water from the gulf into the allocated area.
The stunning beachfront community of Dubai Marina is one of the most renowned places to live in the city. After its development, it has gained its place among one of the most iconic architectural wonders that is home to Jumeirah Beach Residence, Masjid Al Rahim mosque, and the world’s largest mall- the Dubai Marina Mall.
Business Bay
Business Bay is popularly known as the commercial hub of Dubai, contributing to the Dubai GDP rate, which is followed by the highest number of real estate transactions. Business Bay offers an average ROI of 10 to 14%, having a price of 3500 AED to 4000 AED per Sq. ft. Owing to its close proximity to Downtown Dubai, offices, and several entertainment hubs, Business Bay is one of the most popular communities for working professionals, as well as young urbanites. This area provides the complete privilege of working and living in the same area. This mixed-use community consists of both commercial and residential buildings that are somewhat rare in Dubai, and thus, this makes this area very popular in Dubai.
Jumeirah Village Triangle (JVT)
Situated in the core of New Dubai, the top apartments in Jumeirah Village Triangle have many green spaces and common spaces for families and their neighbours to spend time together. It is surrounded by various plantations along the street of the community that gives the perfect feeling of village-like infrastructure; however, it is worthless to say this top community is also a place to take benefit of several world-class amenities. It is encircled by more than 5,000 residential villas and townhouses, all surrounded by landscaped gardens. It is one of the most popular multi-purpose projects, offering a diverse range of features and easy connectivity.
Dubai Creek Harbour
Dubai Creek Harbour, one of the latest waterfront developments, is currently one of the most in-demand areas of Dubai. This vibrant community offers various types of residential, retail, commercial, and entertainment spots for families followed by lush green spaces, a marina, and a golf and yacht club to let residents enjoy their leisure time. This vibrant community is a one-size fits all, that is suitable for people of any ages and fits nearly any lifestyle, that is best for individuals, couples, and families.
Jebel Ali
Jebel Ali Village is renowned for providing a remarkable way of life that invites exploration and discovery. The biggest artificial harbour is located in the community and is simple to find and explore. If you are looking to invest in a gated community, Jebel Ali is one of the best communities to invest in without thinking much about the burden on your pocket. As an integrated smart city with unmatchable leisure and lifestyle offerings, it redefines ultramodern living in Dubai.
How the Dubai Real Estate Market Contributes to Dubai’s GDP
The real estate sector in Dubai is one of the major sectors that is contributing and is set to contribute towards the economic growth of Dubai. In the last few years, the real estate market has contributed to record economic growth rates, leading to a 7.2% growth in GDP. The overall number of real estate investors in 2019 was larger than in 2016. This growth can be credited to the development of top communities and infrastructures that led to a large number of people migrating to Dubai for growth and investment purposes.
The UAE is now the most valuable national brand in the Middle East and Africa, thanks to a remarkable rise in value from $700 billion to $1 trillion in just three years. The Brand Finance Soft Power Index, which assesses 55 parameters, emphasizes the UAE’s worldwide soft power influence.
Conclusion
Once a fishing village with less than 100 residents, Dubai is now the most well-known city in the United Arab Emirates. It is recognized as a significant Middle Eastern business hub and a global metropolis. In October of 2022 alone, almost 8,000 transactions were registered.
An increasing number of real estate investors are eager to purchase real estate across a range of market niches. This is leading to an increased GDP rate in Dubai and, at the same time, giving impetus to developing top communities for people who are interested in investing in the Dubai real estate market.
