Al Maktoum airport: Huge take-off for DWC property

The opening of Al Maktoum International at Dubai World Central, the UAE’s new airport, will lead to gradual urban expansion of Dubai towards the airport, which is currently marked by development activity taking place on Sheikh Mohammed Bin Zayed and Al Khail roads.

“This is already evident along these roads,” Deepak Jain, Head of Strategic Consulting, Mena, at Jones Lang LaSalle, told Emirates 24|7.

Dubai World Central has invested Dh17 billion so far towards developing infrastructure within DWC, including Dh2 billion in developing the residential district.
 
The residential district is already being served with all the major services with 132/11kV electrical substation being handed over to Dubai Electricity and Water Authority for final connections to tenants. District cooling plants to supply chilled water for air-conditioning in the building have been completed.
 
Besides, the main access road to the residential district has been completed, connecting it to the new Emirates Road, Sheikh Mohammed Bin Zayed Road and to Al Maktoum International Airport.
 
Beehive of activity

UK-based Knight Frank has emphasised that the Dubai World Central master development will become beehive of activity should Dubai win the UAE bid to host the World Expo 2020.

“Investors, developers and occupiers are beginning to look at Dubai World Central as a potential hub of activity,” the consultancy said.

Mohammed Bin Rashid City, a multi-billion-dollar project housing the world’s largest mall and over 100 hotels, is located between Emirates Road, Al Khail Road and Sheikh Zayed Road.

Besides, India's Sobha Group has also announced plans to build Sobha City, comprising 280 villas, 13 high-rises, garden apartments, a shopping mall and hotels adjacent to Meydan Godolphin Parks situated along Al Khail Road.

Rising prices?

So, will residential and commercial plot prices rise in communities close to the airport?

Jain doesn’t feel so. He states that proximity to airports doesn’t necessarily result in increased land values for residential or commercial plots.”

“But we will see increased activity in and around the airport in the medium- to long-term.

“This activity will be accelerated if Dubai were to win the rights to host the Expo 2020.”

No bubble

Last week, US-based investment bank Goldman Sachs Group said fears of Dubai’s real estate market experiencing a bubble are “exaggerated”.

“New regulations from the Dubai Land Department are aimed at curbing speculation, while new supply is helping keep values down,” the bank said.

Property prices in Dubai are still 36 per cent below their 2008 peak even after rising by about a third from a low in the second quarter of 2011.

Standard Chartered has also said despite prices soaring Dubai's property market was not heading towards another crash and the market was more sustainable.

Al Maktoum International Airport will be the largest airport in the world when completed with five runways and a capacity of up to 160 million passengers.

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