The Failure of Dubai's $10 Billion Artificial Islands

these are Dubai's man-made Islands consisting of the Palm Jebel Ali Palm Jumeirah and the world for the past 20 years only one of these islands has been fully developed with the two other Islands reported to be sinking back into the Persian Gulf it did seemed that these projects were destined for failure with no solid development plans for over 10 years but all of this changed just recently when the developer nikhil properties outlined a 5 billion dollar plan to save these islands but why are they trying to redevelop this massive real estate project and what's really behind their ambitious new development plan Dubai's man-made Islands were first announced back in 2001 with the Palm Jumeirah being the first island to be fully completed the goal of these projects was simple expand the limited Coastline of Dubai and meet the rapidly growing demand for luxurious housing throughout the city the entire project included a series of artificial islands all planned to be completed within the decade but completing such massive projects proved to be a serious Challenge and with a financial crisis looming construction of both the Palm Jebel Ali and the world came to a halt more than 10 years later these islands still sit completely abandoned with very minimal developments taking place throughout the past few years in the time following the financial crisis the real estate market throughout Dubai drastically slowed down which hindered plans to finish these massive projects while the world has seen some smaller developments take shape throughout the past few years nearly all 300 of its Islands still sit completely abandoned additionally reports of detailed that some of these islands have began sinking back into the Persian Gulf adding even more challenges to an already delayed project with all of these developments facing a number of different challenges it seemed that they were destined for failure with the slowing real estate market it didn't seem that there would ever be enough demand for these massive projects to ever be completed but close to 20 years after these projects were originally announced the situation in Dubai is very different today the real estate market is booming once again and the developer of these islands nikhil properties has announced a 5 billion dollar plan to finish these projects to better understand this Redevelopment plan we need to take a look at each of the projects individually Dubai's original Vision was to build a number of artificial Islands besides the Palm Jumeirah the original concept featured a total of five different artificial islands with only three of them ending up being fully dredged this map from 2001 shows the original plan for Dubai's islands and where the projects were intended to be built today the scene is much different and only three of these developments even appeared from the ocean floor as part of the original development plan this sinking landmass here was supposed to be palmdera which planned to be the largest artificial island in the entire development in the wake of the 2008 financial crisis development of this project was put on hold this has been the case for the past decade but nikhil properties believes that this project still has potential and announced a new development plan to complete it the plan includes using the existing landmass to construct hotels and real estate properties to meet the rising demand throughout the city unlike the original development plan no more land is planned to be dredged to complete these islands and instead the new developments will take place on top of the existing land mass this approach helps cut costs and gives the project a higher chance of being completed and while Palm Dara is a key part of this new development plan the Palm double Ollie is by far the largest initiative construction of the poem began in 2003 but was halted as a result of the financial crisis for the past decade it's been sitting completely abandoned as there was no clear need for a massive real estate project like this but nikhil claims that they are revisiting this project and will invest more than 4.6 billion dollars to relaunch the project the new development aims to build more than 1 700 Villas and six thousand apartments on the palm this would drastically help meet the rising demand for ocean properties throughout the city but many questions arise from these new development plans for one the Palm treble Ollie is in a district of Dubai that has not seen any significant development for the past 20 years through satellite imagery we can see how desolate this area actually is for this project to be successful the area will have to be transformed to support an influx of new residents The Limited infrastructure at this end of the city may be the most complicated aspect of relaunching this project all of these plans and initiatives are part of a rebranding effort by the developer nikhil properties which believes that by reinvesting into these projects they can meet the rising demand for luxurious housing throughout the city the relaunch of these projects comes at a time where Dubai's real estate sector has seen a surge in sales and demand if this trend continues these projects could have the potential to be very successful in the future a report from last month found the Tobias real estate market is seeing its highest level of growth in more than 12 years and according to Bloomberg the real estate market in the city is up a staggering 89 percent in just one year this is a sign that the demand for such massive projects could lead to future success with the strengthening market and higher demand nickiel believes that their investment will pay off in the long term but we also have to consider the current state of the global economy nikhil properties is preparing to invest billions of dollars into these projects at a time where many large-scale development projects have been put on hold just as the 2008 financial crisis showed all of these future plans and initiatives could ultimately be canceled once again depending on where the global economy heads nikhil has not stated if the global economy will influence their plans to relaunch these projects all of this raises many questions regarding the future of these plans and initiatives therefore will these projects ever become a reality where would you buy sinking islands continue to sit abandoned for the long term there are multiple factors that need to be considered to understand if these projects will be successful for one the current state of Dubai's real estate market is not considered to be stable well the real estate market is seeing rapid growth many predictions have shown that this intense growth is bound to slow down going into next year with the worsening conditions of the global economy these projects May begin at the wrong time and if demand for this type of housing drops significantly these projects May ultimately be canceled once again the rebranding of nikhil properties is based on their efforts to relaunch these projects by creating new promotional material and aligning themselves with Dubai's 2040 Vision the company believes that they can attract new investors to support their massive projects with much uncertainty ahead it's unclear if these new goals and initiatives will actually turn out to be successful and ultimately complete these massive development projects if you enjoyed the video consider subscribing and checking out one of the videos above

Channel: Arkive

Views: 39,026

Keywords: dubai, construction, dubai man made islands

Id: ankTm158eoQ

Length: 8min 2sec (482 seconds)

Published: Sat Nov 05 2022