Dubai’s seashores and its multi-million dollar real estate projects
Real estate businesses have a lot of attention nowadays dealing with land and property has always been in the trend . There is a lot of money one can make if they use their minds properly in real estate. Selling real estate for purchasing real estate matters only if there is a future value for that particular property. Obviously nobody is going to be interested in it and buy a property if it doesn’t benefit them. If a person is interested and buys a property he or she has a complete right over the land, its improvements and natural resources available from that land. Natural resources such as minerals, plants , animals , and water etc . Anything in that land belongs to that person. People sometimes enter into contracts in order to develop the particular land and increase its value. Most of the time developers who take up the activity and are incharge plan on constructing fancy buildings, malls and recreation sites set as amusement park and fun filled games , business infrastructure etc
Dubai, which is located on the coast of the Persian Gulf has taken a multi million dollar project to construct man-made islands .The most populated city in the United Arab Emirates is aiming to attract a lot of tourists. Dubai has taken several multi-million projects in it’s coastal regions. The business hub of Western Asia gets its revenue generated from oil and trade but other sources of revenue for Dubai is from tourism ,real estate, financial services and aviation. The real estate developers of Dubai started plans to construct man-made islands in the coast . Real estate value in Dubai started increasing and several companies came forward to invest in their projects, especially for Ocean properties. There were three major real estate constructions planned by the Emirates. “Nakheel properties” a
Real estate company initially decided to construct three man-made Islands on the coastal sides. This company is owned by the Government of Dubai. The plan was to build three different Island projects which when viewed from the space looks like Palm trees. The three multi million dollar Island protects were named as Palm Jumeirah ,Palm Jebel Ali, Palm Deira.
Along with building these three major Island projects Emirates also announced that they would have projects on islands representing Dubai waterfront near Palm Jebel Ali and the world with sun , moon ,other planets , galaxy and also a universe. The Dubai waterfront Island project was also a reason for protecting the Palm Jebel Ali from erosion. In 2001 the real estate company started building the Palm Jumeirah project and simultaneously other projects were also under construction. Dubai real estate value was practically increasing during the period. The world’s largest building the Burj Khalifa was built as well. In 2006 apartments and land reclamation in Palm Jumeirah had already started. Since artificial islands were a project in the coastal area there are chances of storm which is why they built the large luxury hotels on the breakwater ring to protect the inside. In September 2008 there was a grand opening of the Atlantis Hotel built on Palm Jumeirah which had a firework show on the entire palm.
However the celebrations didn’t last long as Dubai started facing the International Financial crisis. All the Mega projects such as building artificial islands off the coast started coming to a halt when Dubai met the global financial crisis. Especially Real estate had a hit due to the Dubai financial crisis as several construction sites had shut down. Due to this there was a drastic decrease in the value of the lands and the demand for it started falling rapidly. This is when the Nakheel properties, the investment company started losing investors and they had to refund in 2011. The Palm Jebel Ali development had come to a standstill which is now strangely forgotten and left half finished with sand banks into the sea. The Palm Deira was also on the verge of being discontinued but the company started to develop the already constructed land. Instead of the old plan the company rebranded the project and is now called “Deira islands”.
Dubai waterfront Island was not even close to advanced and it was discontinued. Now coming to the world, the land was already constructed. Even before the financial crisis several islands were already sold. Though the land was ready there were no development activities done. This was because after the International Financial crisis in Dubai the investors started backing off and had their own financial problems. After the crisis also there were no investors coming forward to invest in this project because most of them felt they wouldn’t benefit from this project and had very little confidence in the returns. One of the reasons behind is the rising sea levels which leads to the smaller channels between the islands to sand up. Projects like these are quite dangerous and are unpredictable.These projects create environmental disturbances such as the water quality within the palm Jumeirah was not so good. It was because the water started becoming stagnant due to the breakwater Rings which were constructed surrounding it to prevent erosion. This was a hindrance to the natural tidal movement.
Investors are now trying to invest on projects which are not environmentally harmful and which support environmental compatibility.