Dubai’s growth continues, but affordability concerns rise
Date
1/28/2025 4:31:26 AM
(MENAFN) Dubai, known for its iconic skyscrapers, has experienced a period of rapid growth over the last five years, but some residents are beginning to feel the pressure. The city has seen record-breaking real estate transactions and a surge in population as more people move to live in the city. Its state-owned airline, Emirates, is also reporting record earnings. However, this impressive growth has come with its own set of challenges, putting a strain on the city’s infrastructure and its residents.
Traffic congestion on Dubai’s roads has become worse than ever, and housing prices continue to climb despite the constant announcement of new real estate developments. Both Emirati citizens and the large foreign workforce that drives Dubai’s economy are feeling the impact of these growing pains, leading to rare public expressions of concern. In a starkly titled report, Hasnain Malik, a managing director at global data firm Tellimer, warned that while Dubai’s economy is booming, the risk of affordability issues is increasing.
Dubai has ambitious plans for its future, aiming to grow its population to 5.8 million by 2040, more than doubling its current population of around 3.8 million. This would mark a significant leap from the population of just 255,000 in 1980. The city’s real estate market, which ignited its growth in 2002 with the introduction of property ownership for foreigners, has been a key driver of its expansion. Despite setbacks during the 2008-2009 financial crisis and the brief COVID-19 lockdown, property prices in Dubai have surged in recent years.
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