6 min read

Desert developments: how a nation's geography can shape its real estate market

Written by

Amira Sajwani

If, like me, you live in the UAE, you’ll know first-hand what a wonderful place it is to call home. From some of the world’s most renowned architecture, like the Burj Khalifa and the Sheikh Zayed Grand Mosque, to its summery climate and sprawling beaches, many of us couldn’t imagine living anywhere else.

While the development of the Emirates has been driven by myriad factors – including visionary leadership, entrepreneurial know-how and a business-friendly environment – our nation’s location has also offered a series of major advantages.

This begs the question: how has the UAE’s real estate market been shaped by its geography?

Space

Desert locales are renowned for their wide-open spaces, which not only offer spectacular vistas but also provide an abundance of room for development. If there’s one thing the UAE can boast, it’s a diverse range of spectacular developments and attractions, many of which have broken world records.

The room to grow also makes desert landscapes ideal for real estate, especially those devised on a grand scale. From Expo 2020 Dubai (now Expo City Dubai) in the UAE to NEOM in Saudi Arabia, not many regions on earth have the capacity to accommodate such expansive projects.

An interesting case in point is our very own DAMAC Hills 2, a master-planned community that features all the best components of luxury living. Put simply, our team would not have been able to develop such an expansive project from the ground up in most other international markets.

The ability to build without having to worry about existing structures results in cityscapes unlike anywhere else on the planet.

Sunshine

Few countries offer residents and visitors the opportunity to enjoy non-stop sunshine, but this certainly isn’t a problem for the UAE and its neighbours. Year-round vitamin D is a major selling point for desert destinations, both in terms of tourism and expat appeal. So, not only does sunshine help boost your mood and provide you with more energy, but it also has an impact on real estate development.

The UAE and wider region are awash with world-class hospitality offerings for this very reason, enabling visitors to combine idyllic beachfront getaways with exciting city breaks. The Emirates offers an abundance of high-quality hotels and accommodation, and growth within this sector is showing no signs of slowing with 48,000 new rooms anticipated in the UAE alone by 2030, according to Knight Frank.

Make no mistake, our nation’s real estate sector would feature far fewer hotels and resorts if not for its desert geography.

Sea

With its clear blue waters, spectacular views and pristine sands, the Arabian Gulf has proved to be the perfect location for beachfront developments. The UAE, in particular, has garnered international acclaim for its large-scale manmade islands, which include Deira Island, Palm Jebel Ali, The World and Palm Jumeirah.

Our region’s coastal setting has had a major influence on the evolution of its real estate markets, with sea views and beachfront living in perennial demand.

And you don’t even have to rely on the Arabian Gulf to enjoy a coastal lifestyle in the UAE. DAMAC Lagoons is a prime example of a community that offers all the benefits of seaside living, despite its inland location. Again, this is something that simply wouldn’t be possible in other regions.

Thanks to this potent combination of geographical factors, the UAE’s real estate landscape is unlike any other. The space, sunshine and beachfront locations that populate our nation and the wider Middle East have enabled the development of some of the most iconic destinations anywhere on the planet.

When it comes to natural geographical advantages, few environments can compete with the Arabian Desert.