In a bid to boost development, tourism, and investment, Dubai has unveiled its blueprint for its ambitious 2040 Urban Master Plan.

The plan aimed at increasing green spaces, providing better housing opportunities, stimulating investment and entrepreneurship, and expanding its sustainable transport solutions was announced by HRH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

The Urban Master Plan is expected to drive new residents into the emirate with Dubai predicting that over the next two decades the population will swell from 3.3 million to 5.8 million, a 76% increase.

SO, WHAT DOES THE PLAN PROPOSE?

• Five main urban areas will be created to support economic sectors
• Green and recreational spaces and areas dedicated to public parks will double in size
•  Nature reserves and rural natural areas will constitute 60% of the emirate’s total area. Green corridors will be established to link the service areas, residential areas and workplaces, facilitate the movement of pedestrians, bicycles, and sustainable mobility means across the city, in coordination with developers and government departments.
• The land area used for hotels and tourist activities will increase by 134%, while that used for commercial activities will increase to 168 square kilometres.
• Land area allocated to education and health facilities to increase by 25%
• The length of public beaches will increase by as much as 400% in 2040 to increase the quality of life for resident
• 55% of the population will live within 800 metres of a main public transport station

REAL ESTATE INVESTMENT

Speaking to Cityscape Intelligence, Nick Maclean, Managing Director at CBRE Middle East said that the objective to grow the resident population; the integration and complementarity of land and the built environment; the recognition of the importance of future investment; and the acknowledgment that to remain the regional business hub the Emirate has to appeal to employers and employees as a place that they want to spend their lives.

“Similar considerations are critical to all national and city urban plans. Historically, Dubai has created an extraordinary commercial and tourism hub and that achievement has been as a result of the government’s willingness to be reactive to change and proactive in its support of innovation. This plan is a public statement of these intentions,” said Maclean.

BALANCING REAL ESTATE DEMAND AND SUPPLY

Dr. Chris Payne, Chief Economist at Peninsula Real Estate agrees: “Providing the world with a vision is what Dubai does so well.

“After all, growing the population by around two-thirds in the next 20 years is actually a lower annual rate than seen in the last 20 years. The challenge will be balancing demand and supply for real estate as the city grows. Jobs and growth attract the population, not solely real estate capacity. Get it right, and Dubai will continue to attract the best talent from the region and vital foreign investment.”

 

_{Photo Credit: Dubai Media Office}

 

DRIVERS OF CHANGE: Top 20 most Influential Sustainable MENA Real Estate Professionals. You can nominate a peer, colleague, line report, or a key figure in real estate who is making a significant strides towards the MENA region’s green transition here.

You live in the Middle East. The temperature pivots up, you switch your air conditioning on —who could blame you? Summers here are harsh, each seemingly more intense, more unforgiving than the last. ‘Comfort cooling’ — bringing temperatures down to levels comfortable for the occupants of any space — isn’t a luxury. It’s a necessity.

Trouble is, air conditioning is one step in a vicious cycle: cooling requires electricity, much of which is still generated from fossil fuels. It also leaks hydrofluorocarbons (HFCs) into the air, a much more potent greenhouse gas than carbon dioxide. You’re probably familiar with the rest. These emissions translate into global warming. And as the temperature goes up, so does the need for cooling.

The energy consumed by air conditioning in the Middle East grew five-fold from 1990 to 2016, and it will continue to do so with spikes in urbanisation and affordability. Soon there could be so many air conditioning units running that they single-handedly undercut our efforts to subvert climate change.

About a third of the world’s energy is used for construction and building operations. The industry also accounts for 39% of global carbon emissions. Here, in the Middle East, buildings consume up to 80% of the electricity generated, with a big chunk harnessed to power air conditioning systems. Which has experts asking the question, what if we designed our buildings to be more efficient? What if the answer lies in a time before air conditioning?

REVISITING TRADITIONAL ARCHITECTURE

Look at Abu Dhabi’s Masdar City, an experiment, an incubator for clean technologies. Look at its wind tower. The 45-metre cylindrical structure uses traditional Arab design to catch prevailing winds near its top and funnel them through its length to flush cool breezes into the plaza below. Cue a five-degree drop in temperature.

Or look at Abu Dhabi’s Al Bahr Towers, double-skinned, the outer façade a take on traditional Islamic architecture. The mashrabiya technique of geometric latticework provides shade and passive cooling. Fitted with screens and sensors, the intelligent façade opens and closes in response to the intensity of sunlight. It limits exposure and slashes solar gain by 50%.

The Middle East and North Africa (MENA) region is in fact riddled with such examples of sustainable design. There region’s architecture industry has designed over 1,200 green buildings that boast a Leadership in Energy and Environmental Design (LEED) accreditation. Of these, 802 are located in the UAE, 173 in Qatar, 145 in Saudi Arabia, 25 in Lebanon and 22 in Egypt.

But the region needs these green buildings, it needs sustainable design practices. Middle Eastern countries top the list of the largest ecological footprint per capita. In Saudi Arabia, electricity consumption rises by 5 to 8% annually — which means oil production and consumption would equalise by 2035. Qatar has the highest per capita level of carbon dioxide emissions, at 44 metric tonnes per person annually. Kuwait is second with 30.3 tonnes, followed by the UAE with 22.6 tonnes.

GOING BEYOND 'GREEN'

Of course so far, sustainable design has centred on energy efficient, environmentally friendly buildings. But, in the post-COVID era, leading green building certification programmes are including health and wellness in their eligibility criteria.

There is now an added emphasis on design practices that integrate open-concept floor plans to support social distancing, and solutions that increase ventilation and incorporate advanced air filtration systems. Building developers are also turning to natural materials such as mass timber or solid wood panels instead of concrete or steel that emit more carbon dioxide.

Soon, a wider range of stakeholders will be involved in the sustainable design process — think, healthcare experts, scientists. Soon, sustainable design will require a multidisciplinary approach, and will go beyond ‘green’ to create overall healthier spaces.

 

DRIVERS OF CHANGE: Top 20 most Influential Sustainable MENA Real Estate Professionals. You can nominate a peer, colleague, line report, or a key figure in real estate who is making a significant strides towards the MENA region’s green transition here.

A partnership between Saudi Arabia’s NEOM and Air Products, ACWA Power will see the pair build a USD 5 billion hydrogen project in NEOM’s high-tech business zone.

The USD 5 billion project will consist of a 1.2 million tonnes a year green ammonia plant, which will use hydrogen produced from an electrolyser powered by solar, wind and storage and will be among the world’s biggest green hydrogen makers when it opens in the planned megacity of NEOM in 2025. Green hydrogen is produced by using renewable energy rather than fossil fuels.

According to a recent Reuters report, financial firm Lazard, which advised Saudi oil giant Aramco on its initial public offering in 2019, has recently approached banks to sound out their appetite for the project.

Hydrogen is quickly gaining traction as the future green fuel of choice and is being a way to decarbonise emissions-intensive heavy industry and transport sectors.

_{Photo Credit: www.zdnet.com}

 

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A joint venture between Dubai-based Ayana Holding and US-based Marsan Real Estate will see BellaViva, a brand new USD 1.6 billion luxury development emerge in the heart of Florida.

The venture will enable Ayana to develop grow its presence in North America.

Comprising 5,500 luxury homes across 1,800 acres of land, hills, lakes, nature reserves, and an equestrian centre, BellaViva is expected to be the fastest-growing community for retirees and seasoned investors.

Complete with golf courses, restaurants, shopping malls, a medical clinic, boutique hotel, spa, hospital, and commercial space, the unique development is expected to offer investors from GCC countries and around the world new attractive investment opportunities in a thriving housing market.

Jean Marsan, founder of Marsan Real Estate Group said: “Aside from the tax-friendly environment, the year-long sunshine, and being the theme-park epicentre of the world, it appears that environmental and social changes have had a huge impact on Florida’s population and economic development.”

In Florida alone, property prices have risen by 6.61% since former President Donald Trump declared a state of emergency last March.

It is estimated that by 2030, the average house price in Florida will reach USD 437,921, putting it in the top ten states ahead of New York and New Hampshire.

 

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Cityscape Intelligence looks at the key highlights from the report:

• During 2020, the leasing sector benefited from the implementation of direct debit and credit checks, while the Sales market profited from reduced LTV (loan-to-value) ratios and lower interest rates for expatriates and Emiratis alike.

• The Government of Dubai has earmarked a total budget of AED 57.1 billion for 2021 and although reduced from 2020 (AED 66.4 billion), it takes into account the unprecedented economic circumstances and consequences of the pandemic.

• In Abu Dhabi, approximately 15,000 residential units are anticipated for completion in 2021. The majority of the upcoming supply is located within the following investment zones: Reem Island comprising approximately 1,850 units, Al Raha Beach with 4,000 units, Yas Island with 2,400 units, and Saadiyat Island with 800 units.

• Similar to 2020, Al Ain will see a limited amount of new supply in 2021.

• In Dubai, 41,500 new residential units and 1.5 million sq. ft. of office space are expected for handover in 2021, a figure that could possibly increase if currently stalled/on-hold projects resume activity.

• With more supply expected for handover in 2021, tenant retention will become increasingly important and can be achieved through competitive rates/incentives and proactive/professional property management.

• In light of the pandemic, the Emirate of Sharjah rolled out a number of stimulus measures to support the economy, most notably a reduction in property sales fees from 4% to 2%, for non-GCC nationals until the end of March 2021.

 

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A USD 1.2 billion deal between DP World and Maspion Group to build an international container port and industrial logistics park in Java, Indonesia will see the Dubai-based company increase its investment footprint in southeast Asia.

DP World and its partner Caisse de dépôt et placement du Québec (CDPQ) entered into the agreement with Indonesian conglomerate Maspion Group earlier this month with construction expected to begin later this year.

DP World said the JV was the first of its kind in Indonesia’s transport sector involving a foreign direct investor (FDI) partner and a private sector Indonesian company. The project will develop infrastructure and enable trade in rapidly growing economy of Asia.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World signed the agreement at a Dubai and Indonesian forum in the Asian country.

Bin Sulayem said the partnership with Maspion Group is an important development in UAE’s global ports and logistics network ad Indonesia is rapidly developing as one of the world’s most important economies.

“This project will create modern, efficient infrastructure, as well as an industrial zone that provides quality logistics. DP World’s business model and vision are aligned with President Jokowi’s vision to spur faster economic growth through trade infrastructure development, more investment opportunities, and job creation,” he said.

Under the agreement, DP World Masipon East Java will become the sole operator of a modern international container port with design capacity of up to three million twenty-foot equivalent units. DP World and CDPQ will also work with Maspion Group to develop an integrated industrial and logistics park, adjacent to the Container Terminal, with an initial land area of 110 hectares with scope for future expansion.

The agreement comes on the back of news that the global logistics industry was worth EUR 5.275 trillion in 2020 and is forecasted to grow CAGR 4.7% from 2020 -2024 according Transport Intelligence (Ti).

 

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The Covid-19 pandemic has caused the unprecedented change, resulting in the sudden recalibration of our urban spaces. Here we look at some of the key lessons from the pandemic in 2020, and how they could impact how architects, developers and city planners are looking at building cities in 2021 and beyond.

THE CHALLENGES OF 2020 AND COVID-19

Many of the planned developments across the region from new skyscrapers to Dubai’s Expo 2020 were delayed or put on hold due to the crisis. Moreover, many of the countries in the region faced an exodus of foreign workers due to the impact of the COVID-19. Dubai suffered the steepest decline, with a drop of 8.4 percent in expat workers, while the GCC region on a whole faced an average of a 4 percent decline during 2020.

There have, however, been many positive outcomes from the challenges posed by the pandemic. Indeed, many cities have used the pandemic to experiment with change in terms of urban planning.

THE CLIMATE CRISIS AND THE PANDEMIC

As a result of the past 12 months, there has been a renewed appetite for greener cities. The “15-minute city” was a green-living concept widely discussed prior to COVID-19, however, the trend has seen a significant uptake of interest in the past 12 months. With travel discouraged, public transport less available, and people working remotely from home, there has been a greater focus on the immediate amenities of a particular area. This is a trend likely to continue beyond the pandemic, with the greater expectations from citizens for locally and civic minded urban hubs.

 

GREATER TECHNOLOGY OPPORTUNITIES FOR ARCHITECTS IN 2021

Big data is set to transform urban planning and architectural design. Buoyed on by challenges faced by the COVID-19 crisis and the rise of digital cities - where a significant amount of the workforce works remotely - big data will support economical resource use and the creation of smart cities, like The Line and the New Administrative Capital developments, currently being planned respectively in Saudi Arabia and Egypt in 2021 and beyond.

 

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There were no cinemas in Saudi Arabia from 1983 to 2018. Or, actually, there was a lone IMAX in the coastal city of Khobar that screened scientific, non-fictional films. To the outsider, the casual observer, this 35-year ban on cinemas seemed to end in the bat of an eyelid. Blink, and the nation was attending its first-ever public screening in decades: Black Panther, and since then American chain AMC Theatres has promised 40 cinemas across the kingdom in the next five years, and Dubai’s VOX Cinemas has promised 600 screens.

But this move was neither sudden, nor surprising. The lifting of the cinema ban was years in the making and one in a series of socio-economic reforms across Saudi Arabia. According to the government, Saudi Arabians spent more than USD 30 billion each year — close to 5% of the nation’s GDP — on entertainment and hospitality elsewhere in the Middle East, in Dubai and in Bahrain. Imagine, said analysts, if a fraction of those billions could be kept within.

Plugging economic leaks is but one piece; the bigger picture is a world beyond oil. Saudi’s Vision 2030, its blueprint to a diversified economy, looks further, to claiming a much bigger slice of the pie. So, come 2019, Saudi Arabia flung open its doors to tourists. You could now apply for an online visa if you were visiting from one in 49 countries. Earlier you could only travel to the kingdom for religious reasons or for business purposes, or as an expatriate worker.

MULTI-BILLION DOLLAR PROJECTS

But Saudi Arabia’s ambitions run higher than just introducing tourist activity into its revenue streams. The kingdom is looking to graduate to the fifth-most visited destination in the world by 2030, and that tourism contribute to 10% of its GDP, up from a share of only 3%.

Of course, to draw in such a significant volume, you must have a lot on offer. The kingdom is already home to five UNESCO-designated World Heritage Sites. Then there’s also the Saudi Seasons initiative, launched in 2019, under the umbrella of which eleven annual festivals are now held across the nation.

But to really stand out against the stiff competition, Saudi Arabia’s Crown Prince, Mohammed bin Salman announced a series of ‘Giga Projects’. Funded in large part by the kingdom’s own Public Investment Fund (PIF) — the tenth largest sovereign wealth fund in the world — these projects are already grabbing headlines for their size and scope and their potential geo-economic and socio-political impact. Not to mention the multi-million, multi-billion-dollar construction contracts that have already been awarded under their banner.

SAUDI ARABIA'S 'NEW FUTURE'

QIDDIYA

In the early months of 2019, construction started up on Qiddiya, a hub for entertainment and sports, complete with a Formula One racetrack and a Six Flags theme park, and more than half the size of Singapore. By the end of 2020, construction contracts of over USD 500 million had been granted as part of this project.

RED SEA PROJECT, CORAL BLOOM

But this is overshadowed by the USD 4 billion worth of construction contracts awarded last year as part of the Red Sea Project, an intended luxury nature reserve stretching across 22 of an undeveloped 92-island archipelago. Last month, as part of this development, the Crown Prince announced Coral Bloom, home to the world’s fourth-largest barrier reef system and soon to become the site of several sustainably designed luxury resorts.

NEOM, THE LINE

Then there’s The Line — also announced earlier this year, the revolutionary 170-kilometre, AI-enabled, clean energy-powered belt of hyper-connected communities will serve as a tourist attraction, yes, but will also be home to over one million residents. The Line is a part of the ambitious 500-billion-dollar NEOM smart-city project — a portmanteau of neo, which translates from Greek to ‘new’, and ‘m’ which stands for mustaqbal, Arabic for ‘future’. So Saudi Arabia is quite literally building itself a new future.