Gulf Real Estate Study

Major real estate developments and country branding initiatives in emerging markets are inextricably linked. An awe-inspiring mega project can generate tourism, and a city’s successful tourism promotion program can generate demand for property. Dubai’s meteoric real estate success and rise as an international tourism destination is a prime example of the impact that one can have on the other. With The Palm, Burj Khalifa, Dubai Shopping Festival and a spectrum of other projects and government initiatives, it was no surprise that Dubai dominated and led the emergence of the region’s real estate sector.

Since the global financial crisis, however, no other city has suffered a more dramatic fall from grace than Dubai. Emerging to take its lead is its neighboring city, the Emirate of Abu Dhabi. As the future home of the Guggenheim and the Louvre, host of the F1 Grand Prix at an immaculate new racecourse, and the rising prominence of Masdar in the global discussion of alternative energy; Abu Dhabi is putting on an impressive — albeit more reserved — and diversified bid to claim the title of the new capital of the Middle East. With its financial strength and its rise as a destination of note, Abu Dhabi is best-placed to lead the region’s real estate recovery. It is also poised to be the first place in the region to attract foreign investment and partnership opportunities in the future, should the Emirate seek these.