How long will Dubai real estate interest property developers? How long can any comet hold its shining place in the sky? For discerning investors watching the Dubai skyline grow this is a logical question. How long and how profitable can such growth be sustained?
For the billions at risk funding the new construction whirlwind in Dubai in the United Arab Emirates property development explosion, a gimlet eye is needed. Conservative investors must examine the crystal towers and their respective profit generating market positions with care.
The mythical rainbow ends at Dubai, the city of light, water, and heights previously afforded only to Czars and Princes. But the Paradises of the modern world are too worn-in, well-populated, sometimes decrepit, noisy and for many not a preferred place to live, if sometimes pleasant to visit.
But the royalty of today, be it either from business or trade, can sleep soundly in the first-to-market luxury resort residence only a few millimeters short of the exotic quality of living in space.
For bankers worldwide, the key analysis is based on one question: can investment in Dubai consistently return competitive real estate venture capital profits to ramp up investment and consumer interest past the first wave?
In a fairy tale the city would come tumbling down at midnight.
But the modern Cinderella city has Metro line rail stations and jumbo hotels rising into the sky like Jack-in-the-beanstalk vines wrapped in designer-faceted aluminum. The city has grown with a verve and at an explosive rate equal to a virtual implosion of value and property development. It’s not coming down in a millennia.
The mere sum of materials and mountains of resources moved to make modern Dubai happen makes it worth learning the metric system. Conventional wisdom prevails: no such amount of materials would go into a project that can do other than succeed.
GPS systems for navigation of three world class marinas as well as private islands. Snow and water sports. At the new World that is Dubai, no dream is too big. If you can dream it, they can build it. And if you’re smart, you can invest.
The property values of Malibu California, with the imaginative (and urban) architecture of Las Vegas with the unique flavor of Miami Florida’s lush seascape environment. The value of this kind of environment in realtime has endless value for the one class of people who can afford it.
But instead of decades, even centuries of decay and a less than ideal sightline on the horizon, in Dubai, perfect horizons of pristine beach and seacoast, waterline and towering cityscape exist.
Written by Page Howe. Page Howe bears no affliation with Dubai Select. The views expressed are purely his own.
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