How will Dubai Water Canal benefit investors?
The area in the vicinity of the Dubai Water Canal will have a different look and feel once the project is complete, which in turn will mean good news for real estate investors
One of the most highly anticipated projects in Dubai right now is the Dubai Water Canal. The huge, $545m (AED2bn) project has paved the way for 800 million cubic metres of water to flow every year from the end of the creek near JW Marriott Marquis, through Sheikh Zayed Road and to the sea in Jumeirah, dividing the city into two.
The banks of the canal will feature one shopping centre, four hotels, 450 restaurants, luxury housing, walkways, and cycle paths. The 3km-long project ranges from 80m to 120m in width. It will be 6m deep and crossed by 8m-high bridges. It will create new public places and facilities with a total area of 80,000m2, with private marinas for boats and a trade centre at the entrance of the canal.
So huge is the scale of the canal project that it involved multiple contractors and was divided into three phases by the Roads and Transport Authority (RTA); the first two involved the building of bridges, and the third comprised the drilling of the canal and construction of a sea wall for the beach.
By the end of last month, the canal was flooded with water, which was seen as a significant development in the massive project. The water level will slowly rise in the next few weeks, according to the officials.
Satellite images also confirmed that the canal is now full of water with the help of the high-definition photographs captured by DubaiSat-2, a satellite owned and operated by the UAE’s Mohammed bin Rashid Space Centre (MBRSC).
The images show the new canal flowing from Dubai Creek towards the Arabian Gulf. A host of under-development projects, including residences, malls, hotels, and hotel apartments can also be seen on both banks of the waterway.
The months of traffic diversions and road closures continuously tested our patience, but with the completion of the canal, the locations will witness a thriving lifestyle and pleasant temperature drop in the vicinity. Not to mention the immense benefit that the development will bring to long-term investors who decide to put their money into the adjacent projects. They will have a chance to bag handsome financial returns in the near future, because once the project is finished, the areas in the vicinity will have a completely different look and feel.
One of the projects, Al Habtoor City, is set for delivery at the same time as the canal, and will attract attention as it is located adjacent to the canal, and will feature more than 3,000 residential units, as well as other amenities and hospitality options. Luxury developer Damac also announced Aykon City, one of the first projects overlooking the canal and comprising six towers, including residential units, a five-star hotel, luxury hotel apartments, and boutique office spaces.
The Dubai residential market has always offered long-term return benefits to its investors. And given the target for completion of the canal project is November 2016, it will be interesting to see whether the massive development will breathe new life into the emirate’s property investments.