The Dubai 2040 Urban Master Plan will have a positive impact on real estate prices in the emirate, according to a leading industry expert.
The master plan focuses on using available spaces within the limits of the current city and concentrates on development within existing urban areas.
Under the plan, the land area used for hotels and tourist activities will increase by 134 percent, while the land used for commercial activities will increase to 168 square kilometres.
While Dubai will continue to be a global hub for innovative start-ups, international corporations, and strategic investments, the master plan will also increase the land area allocated to education and health facilities by 25 percent. The length of public beaches will also increase by as much as 400 percent in 2040.
Chris Hobden, head of strategic consultancy, Chestertons MENA, said: “The balance struck between preserving existing urban areas and supporting new sustainable development through infrastructure and planning reforms will positively affect Dubai’s property market, serving to underpin values and create new project opportunities.
“The focus on expanding the emirate’s conservation and recreational areas will further enhance Dubai’s cityscape, with proximity to green space a key driver of residential property values.”
A property glut and faltering demand in the Middle East’s business hub have driven prices down by more than a third since the market peaked some seven years ago. The decline has been made worse by the coronavirus pandemic.
Although the emirate’s property market in Dubai may “bottom out” next year after weathering a tough 2020, according to S&P Global Ratings.
However, Lewis Allsopp, CEO of Allsopp & Allsopp, believed the announcement and implementation of the master plan will add further impetus into the industry.
He said: “As residents here in the UAE, we are very fortunate and I believe things will only get better as time goes on. The 2040 plan is enticing for overseas property investors, entrepreneurs and for expats already residing in Dubai. The city is becoming more and more of a home for everyone and a forever home at that.”