Why Dubai’s 2040 Urban Plan Is a Game Changer for Real Estate?

Early History

• 18th Century - Dubai was first introduced as a fishing village.
• 1820 -  The Sheikh of the emirate signed the British-sponsored General Treaty of Peace.
• 1822 - A British naval surveyor noted that Dubai was at that time populated with a thousand people living in an oval-shaped town surrounded by a mud wall, scattered with goats and camels.
• 1833 - The Al Maktoum tribe establishes the fishing settlement of Dubai.

Growth and Expansion

• 1892 - Pearling and maritime business began to flourish.
• 1912 - Dubai's first school, Al Ahmadiya was established in Deira.
• 1966 - Oil was discovered in Dubai, attracting foreign trade and stimulating the economy.
• 1971 - Dubai and other emirates sign a deal to form the United Arab Emirates (UAE) on 2 December 1971.
• 1979 - Dubai World Trade Center, the city's first skyscraper opened.
• 1985 - Dubai's flagship airline, Emirates, was launched.

Establishment as a Modern Metropolis

• 2003 - Recognized as a global financial hub by hosting the annual meeting of the World Bank and the International Monetary Fund (IMF).
• 2010 - The Burj Khalifa becomes the tallest building in the world.
• Present - Dubai is a cosmopolitan city and is considered to have one of the most liberal societies in the region.Recent studies have shown that the urbanization trends in Dubai took place in three stages depending on the region and time namely,

Stage 1 - Origination of Urbanization Before 1971

During the first stage, the inhabitants lived in houses made of palm fronds and had limited resources which restricted the growth of urban cities. When the first bridge was constructed across Dubai Creek in 1963 and oil was discovered in 1966, gradually the city started urban settlements.

Stage 2 - Growth from 1971 to 1985

Between 1971 and 1985, a planned suburban growth occurred, and a new master plan for the city was considered. Dubai's aggressive development was becoming evident to everyone due to its visionary goals, strong leadership, high-quality infrastructure, an expatriate-friendly environment, and zero tax on personal and corporate income. This resulted in Dubai becoming the main regional business and tourism hub.

Stage 3 - The Urbanization of Modern Dubai from 1986 to 2003

In the early 1990s, Dubai took a strategic decision to emerge as a major in-ternational-quality metropolitan city. The Dubai Urban Area Strategic Plan from 1993 to 2012 was prepared to guide the economic and physical development leading to the 21st century. Dubai started a new era of construction glory with a vast expansion of new cities. By the early 2000s, Dubai opened its market internationally leading to mass migration of people from fellow countries. During this era, Dubai showcased a new and booming urbanization trend.

The Dubai 2040 Urban Master Plan maps out a comprehensive plan for sustainable urban development in Dubai. One of the most ambitious of these has been the Dubai 2040 Urban Master Plan, which aims to transform Dubai into a sustainable, people-focused city by 2040. It focuses on enhancing the standard of living and reinforcing Dubai as a global and cosmopolitan giant in the coming years.

As such, the goal of the Dubai 2040 Urban Master Plan is to continuously implement Dubai’s plans and strategies, prioritizing their well-being, happiness, prosperity, and stability. Dubai 2040 Urban Master Plan is the seventh development plan for the emirate since 1960.

The map highlights a comprehensive future master plan focussing on sustainable livelihood, happiness, and improved quality of life for the residents, citizens, and visitors over the next 20 years.

Strategic Goals of Dubai 2040 Urban Master Plan

1. Optimize the utilization of spatial and infrastructure resources.
2. Planning and developing vibrant and healthy communities.
3. Doubling green and leisure areas and enhancing their qualities.
4. Providing sustainable and flexible means of mobility.
5. Fostering greater economic activity.
6. Enhancing environmental sustainability.
7. Safeguarding the Emirate’s cultural and urban heritage.
8. Developing comprehensive legislation and planning governance.

THE ‘THERME DUBAI’ PROJECT

One of the prominent foundations of the Dubai 2040 Urban Master Plan is the ‘Therme Dubai’ Project which includes a wellbeing resort and an interactive park and is being developed in Zabeel Park with an estimated cost of AED 2 billion. The project is the first of its kind in the Middle East and the tallest facility of its kind in the world. This project is anticipated to be completed by 2028, spanning 500,000 square feet, stands 100 meters tall, and is designed to host up to 1.7 million visitors annually. The project possesses world-class amenities and attractions including natural therapeutic zones, thermal pools, Michelin-star restaurant, three 18-metre waterfalls, and expansive 4,500-square-metre indoor and terrace pools offering dynamic, and many more facilities.

JEBEL ALI BEACH DEVELOPMENT PROJECT

The Jebel Ali Beach Development Project extends 6.6 km and an area of 330 hectares, to become a distinctive recreational destination placing high priority on environmental preservation and the protection of local ecosystems and wildlife. The plan includes developing a 5 km sandy beach and a 1.6 km mangrove beach. Jebel Ali Beach will be the longest public open beach in Dubai.

DEVELOPMENT OF AL MAMZAR AND JUMEIRAH 1 BEACHES

The project spans 5.7 km (4.3 km at Al Mamzar and 1.4 km at Jumeirah 1) and is estimated at AED 355 million. The two projects, slated for completion in 18 months, are part of the ongoing efforts to build sustainable infrastructure for all coastal and beach facilities. The project supports Dubai’s efforts to build a city with exceptional leisure and tourism facilities for its residents and visitors. It aligns with the Dubai Economic Agenda D33, Dubai Urban Plan 2040, and the Dubai Quality of Life Strategy 2033 objectives.

DUBAI SOCIAL AGENDA 33

This project was launched with the theme - Family: The Foundation of Our Nation and a budget of AED 208 billion for the upcoming 10 years. The agenda aims to form stable families with strong capabilities and adhere to their identities. Sheikh Mohammed bin Rashid Al Maktoum allocated 3,500 plots of land to be distributed among citizens and 2,300 ready-to-move-in houses across Dubai valued at AED5.5 billion and named the new area designated for the housing project for citizens as ‘Latifa City’. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum launched the ‘Dubai Integrated Housing Center’ at Avenue Mall in Nad Al Sheba seeking to provide 54 residential services for citizens under one roof.

APPROVAL OF THE DUBAI  METRO BLUE LINE PROJECT

Sheikh Mohammed bin Rashid Al Maktoum has approved the Dubai Metro Blue Line project, a 30 km metro route strategically linking key areas in the emirate through 14 stations including three key interchange points the Creek Station on the Green Line, Centrepoint Station on the Red Line, and Dubai International City Station 1 as well as the iconic station at Dubai Creek Harbour. The Blue Line will connect with the Green Line at the Creek Station and intersect with the Red Line at Centrepoint Station and will cater to one of Dubai 2040 Urban Masterplan’s Urban centers, the Dubai Silicon Oasis Centre that attracts talents and minds, contributing to economic growth and knowledge.

DUBAI COUNTRYSIDE AND RURAL AREAS DEVELOPMENT MASTER PLAN

This master plan spans an area of 2,216 square kilometers and aims to preserve the natural environment of Lehbab, Margham, Al Marmoom, Al Lisaili, Al Faqaa, and Al Aweer, and enhance the well-being of the residents and visitors through a variety of services and amenities. It also includes sports initiatives such as skydiving, hot-air balloons, safari trips, and a club for remotely controlled planes and cars. The project will also feature a desert station for sandboarding and desert driving alongside other facilities that offer visitors a unique experience.

SAIH AL SALAM SCENIC ROUTE PROJECT

This project includes providing facilities and services to visitors along the route and offering trips to the ancient sites of Saruq Al-Hadid and Al Marmoom Heritage Village. It is a 100 km-long road for vehicles and bicycles uniquely built based on the concept of the Scenic Route to provide a holistic tourism experience. In addition, camps and lodges in the form of glass domes with panoramic windows will be built along with open lounges to allow people to enjoy their stay beside the existing lakes in the area. The project will include an outdoor cinema experience, events and art exhibitions, and a Caravan Park.

HATTA MASTER DEVELOPMENT PLAN

The Dubai 2040 Urban Master Plan focuses on preserving Hatta’s natural environment, boosting its tourism competitiveness to support domestic projects initiated by Hatta residents, and creating opportunities that stimulate tourism and encourage entrepreneurial activity. The plan encompasses improving the efficiency of public facilities and services for community members and developing a sustainable transportation system providing hotels that offer multiple services that support tourism and sports activities. Moreover, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum approved the construction of a private school, Hatta Beach, 235 houses, and Hatta Souq.

DUBAI’S NATIONAL HOUSING POLICY

Providing housing for citizens and distributing lands for construction are essential pillars of social and familial stability in Dubai.

HIGHLIGHTS OF THE POLICY:

• Providing integrated and diverse housing options with the highest planning standards to cater to the citizens' needs for the next 20 years, as the space allocated for national housing will increase to 1.7 billion square feet in 2040.
• As part of the first phase of the policy, the provision of 4,000 land plots and houses to citizens of Dubai at AED5.2 billion,
• Raising the limit for interest-free housing loans to AED1 million for eligible categories.
• Launching a digital platform for the Emiratis enrolled in Dubai’s National Housing Program to exchange grants, land plots, and housing units among themselves.

5 URBAN CENTERS

The Dubai 2040 Urban Masterplan includes focusing on development and investment in five urban centers (three existing and two new centers) to promote the growth of economic sectors and increase the job opportunities for its population. The existing urban centers include: Deira and Bur Dubai. The global economic and commercial center encompasses the Dubai International Financial Centre, Sheikh Zayed Road, Downtown, and Business Bay, and the tourism and entertainment center encompasses the Dubai Marina and JBR. The two new centers include the Expo 2020 Centre, an economic and growth hotspot supported by exhibitions, global events, and integrated logistics services; and the Dubai Silicon Oasis Centre, an international center attracting talents and minds contributing to economic growth and knowledge.

The Dubai 2040 Urban Master Plan presents significant opportunities and key insights for real estate investors.

• Increased Property Value

With the projected population rise, there will be higher demand and appreciating property values mainly in the five urban centers i.e, Deira and Bur Dubai, Dubai International Financial Centre, Sheikh Zayed Road, Downtown, and Business Bay, Dubai Marina and JBR, Expo 2020 Centre, and the Dubai Silicon Oasis Centre.

• Expansion of Sustainable and Eco-friendly Communities

The plan prioritizes sustainable and eco-friendly construction practices. The investors can invest their resources in properties that align with sustainability goals, such as green spaces, smart city features, energy-efficient buildings, and renewable energy solutions.

• Strong Demand for Affordable, Mid-income and Luxury Housing

The plan focuses on balanced population growth, thus the investors can expect opportunities in various segments, from affordable housing to ultra-luxury developments, catering to the diverse needs of the growing international population.

• Focus on Mixed-use Developments

The plan directs focus on mixed-use developments, leading to a surge in the demand for commercial real estate making it an attractive opportunity for investors to develop retail spaces, office buildings, and community hubs that cater to the needs of residents and businesses.

• Enhanced Infrastructure and Connectivity

With investments in new metro lines, roads, and urban mobility projects, areas near transportation hubs will likely see higher rental yields and property price growth.

Dubai 2040 Urban Master Plan is a comprehensive visionary and ambitious plan for building a sustainable and improved future for Dubai focussing on economic growth, development, and enhanced quality of life by incorporating flavors of uniqueness and innovations for the residents, investors, and tourists.