Why the Dubai Marina traffic jams are unlikely to persist
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Why the Dubai Marina traffic jams are unlikely to persist

Why the Dubai Marina traffic jams are unlikely to persist

A couple of years' ago access to the Emirates Hills district was a nightmare, particularly when The Springs villas were first occupied. Today there is hardly a bad day. It will be the same for the Dubai Marina which experienced near gridlock last week as the new owners of the Jumeirah Beach Residence started to take up possession.

    Naturally it would be better if road infrastructure and property handovers could be seamlessly coordinated. However, the Dubai Government is investing many millions in a huge new interchange for the Dubai Marina and Emirates Hills that is only now months away from completion.

    Already this interchange has vastly improved traffic flow from the Dubai Media City to the Emirates Hills, and as its feeder roads into the Dubai Marina are completed it will speed up entry and exit to this district as well.

    Somewhat further down the line and the construction traffic will also be removed from the Dubai Marina as this densely packed region of more than a hundred high-rise towers is completed. Then we will see if the transport analysts have done their homework correctly.

    Price outlook


    Another concern hovering over the new residents of New Dubai is the outlook for house prices. As with the traffic flow, it could well be that the news gets a bit worse before it gets better.

    For the supply chain in New Dubai is just starting to deliver. The JBR is more than 6,000 units, there at least as many towers from other developers in the immediate area and then the Jumeirah Lake Towers are coming up on the other side of the Sheikh Zayed Road.

    Even the villa market is going to have to contend with the 3,000 villas of The Palm, Jumeriah, a big increase in supply for villas.

    Given that the Dubai Marina is a trendy township, with five-star beach hotels and a waterfront environment, this will probably still be a location of choice for many new migrants to Dubai, assuming that it is possible to get in and out by car.

    Secondary locations


    Indeed, if you look for precedents in other cities then it is more likely that secondary, non-coastal construction projects will feel the supply pressure exerted by the Dubai Marina with people opting first for the coastal location as oversupply will keep prices down.

    Only when the Dubai Marina is full up, and perhaps also its city counterpart Downtown Dubai by the Burj Dubai, will new residents begin to look at the alternatives.

    For buyers the message should be clear. In a market where oversupply is an issue and demand remains strong but not sufficient, then the old real estate owners' maxim 'location, location, location' is a truer guide than ever.

    It is the outlying areas, where nobody wants to live unless they have to that will suffer most in a downturn. On that estimate any short-term traffic problems in the Dubai Marina should be seen as a buying opportunity and not a long-term issue. Traffic issues can be solved but you can not shift a location.
    Author
    AMEinfo Staff

    AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.

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