A city known worldwide for its architectural wonders and luxurious lifestyle Dubai’s transformation from a barren landscape to a global tourist hotspot raises curious questions.
Was the enormous financial and environmental cost worth it?
Can the expenditure be justified with the view of the city’s rapid development and income through tourism?
These are some of the contested issues that make for a captivating discussion.
Strap in for an enlightening revelation on the astounding figures and controversial aspects of Dubai’s construction.
Cost Of Dubai’S Construction
The construction of Dubai’s megacomlex including the world’s largest mall the Dubai Mall totaled a massive $20 billion project. Dubai’s developments are known for unprecedented scope and ambition making the construction cost of the whole city approximately $300 billion.
Notable construction projects include Sustainable City which sat outside central Dubai costing $354 million and Wasl Tower with an estimated cost of $400 million.
The Burj Khalifa renowned as the world’s tallest building required a staggering $1.5 billion for construction. Moreover to build the city an estimated amount of $12 billion construction project was launched which included the large-scale developments during the property boom from 2004 to 2006.
Building Dubai City Expenses
Building an entire city like Dubai comes with many overhead expenses. The property boom due to foreign wealth investments led to an increase in construction costs.
At its peak in August 2008 the cost per square foot was a staggering Dh1200 which later fell to Dh350 per sq ft today due to the global financial crisis.
However the varying costs of living in Dubai also comprise these expenses. For a family of four the estimated monthly cost is $3255 excluding rent while a single person’s monthly costs are $946 also without rent.
Average monthly salaries range from AED4810 (USD$1309.56) to a whopping AED99000 (USD$26953.44). Furthermore the price of 1 litre of filtered water is only 0.7 fils.
Dubai’S Construction Costs
The construction of Dubai which began in 1994 incurred costs approximated to $20 billion. The cost of building includes numerous landmark structures such as the world’s tallest tower Burj Khalifa which was completed in 2010 for a whopping $1.5 billion.
Other noteworthy construction costs include the $400 million Wasl Tower projected to be finished by August 2021 and the $354 million Sustainable City a development situated 18 miles outside central Dubai projected to be fully complete by 2019.
One of the standout construction projects in the city is the Dubai Mall part of a larger $20 billion megacomplex. The city also witnessed a property boom period from 2004 to 2006 significantly driving up construction costs.
Development Expenses In Dubai
While Dubai is known for its sky-high towers and luxurious lifestyle the costs behind its developments are also monumental. The city’s construction cost index fell by 1.72% in 2020 greatly impacted by the global financial crisis of 2007-2010.
At the peak of the property boom in August 2008 construction costs in Dubai stood at Dh1200 per sq ft. However these would later fall by 70.83% levelling out at about Dh350 per sq ft by present day.
Despite the drop in construction costs the cost of living remains high. A single person’s estimated monthly expenditures are roughly $946 without rent whereas a family of four can expect to spend about $3255 per month without rent.
Building Expenses Of Dubai
The grandeur and opulence of Dubai can be attributed to significant financial investment. Building Dubai was a massive undertaking involving large otherworldly architectural designs combined with the latest technology.
The Dubai Mall part of the city’s megacomplex was a $20 billion project itself. Today it stands as a symbol of Dubai’s swift transformation from a modest port town to a cosmopolitan metropolis.
Large-scale projects played a pivotal role in Dubai’s property boom from 2004 to 2006. This property boom also precipitated a construction boom.
However it wasn’t all smooth sailing as the global financial crisis of 2007-2010 led to the suspension or abandonment of many construction projects causing property prices in Dubai to fall.
The city’s tallest and most iconic building the Burj Khalifa had a construction cost of $1.5 billion reaching its completion in 2010. Not far behind the construction of the Wasl Tower was estimated to cost around $400 million and is expected to be completed in August 2021.
Moreover the development of the $354 million Sustainable City about 18 miles from central Dubai was scheduled to be fully completed by 2019. Conversely the construction cost index in UAE dropped by 1.72% in 2020 influenced by the dynamics of the real estate market and other factors.
On a larger scale it is estimated that the total expense to build Dubai amounts to an enormous $300 billion. Despite the massive projected and actual costs these strategic investments aim to transform Dubai from an oil-reliant economy into a diverse and sustainable economy.
Furthermore the city’s diverse economy continues to attract foreign wealth to the real estate market with an estimated $146 billion of foreign investment indicating the profitability of the real estate sector in Dubai. The construction industry remains a significant pillar of Dubai’s booming economy contributing substantially to the city’s total GDP estimated at USD$102.67 billion in 2018.