Dubai Feeling the Strain of Explosive Growth as Real-Estate Prices Soar and Roads are Choked with Vehicles
DUBAI, United Arab Emirates — Skyscraper-studded Dubai has been on a hot streak for the last five years — and some residents are starting to feel burned.
The city-state has seen record-breaking real estate transactions and as more and more people come to live there, and its state-owned airline Emirates is booking record earnings. But all that growth comes with strains for the city’s population.
Traffic feels worse than ever on Dubai’s roads. The price of housing continues to spike even with new real estate projects being announced almost daily. Caught in the middle are both its Emirati citizens and the vast population of foreigners who power its economy — sparking rare public expressions of concern.
Skyrocketing Housing Prices
Under Dubai’s current plans, the city aims to have 5.8 million residents by 2040, adding more than half its current estimated population in just 15 years. Since 1980, its population has already soared from around 255,000 to around 3.8 million.
Real estate lit the fire in Dubai’s growth in 2002, when the desert sheikdom began allowing foreigners to own property. After sharp falls during both the 2008-2009 financial crisis and Dubai’s brief coronavirus lockdown, prices have been soaring.
Today, average prices per square foot are at all-time highs, according to Property Monitor. Rental prices increased as much as 20% in key neighborhoods last year, with further rises likely this year, with some residents moving to communities further out in the desert, the real estate firm Engel & Völkers said.
Jammed Roads
Even before the boom, some people who worked in Dubai chose to live in the neighboring emirate of Sharjah, some 20 kilometers (12 miles) north of the city’s downtown, or further away. Some 1 million commuters from other emirates jam the 12-lane Sheikh Zayed Road that runs through the center of the city and other highways every day, as studies suggest that as many as four out of five employees drive to work alone.
That traffic has only intensified with Dubai’s new arrivals.
Boom Concerns Also Raised by Emiratis
Congestion has got so bad that it’s driving even prominent Emiratis to break their customary silence on public affairs.
Habib Al Mulla, a prominent Emirati lawyer, wrote on the social platform X in December that while authorities were working on congestion, the problem demanded "a set of immediate and long-term mechanisms." He followed up by publishing an opinion piece twice mentioning "congestion" as being among "pressing issues" for global cities like Dubai.
A Search for High-Tech Solutions
For Dubai’s autocratic government, overseen by ruler Sheikh Mohammed bin Rashid Al Maktoum, possible solutions to the grinding traffic have ranged from the practical to the fanciful. The government in recent months has repeatedly encouraged companies to allow more remote work options, including in a report released in November that also suggested staggered and flexible working hours.
Conclusion
Dubai’s explosive growth has brought various challenges, from skyrocketing housing prices to jammed roads. While the city’s leaders are exploring high-tech solutions to alleviate traffic congestion, concerns are being raised by both Emirati citizens and foreigners. As the city continues to attract more people, it remains to be seen whether these solutions will be enough to mitigate the strains of its rapid growth.
FAQs
- What is the current population of Dubai?
The current estimated population of Dubai is around 3.8 million. - What is the plan for the city’s population growth?
Dubai aims to have 5.8 million residents by 2040, adding more than half its current estimated population in just 15 years. - What is the current state of the real estate market in Dubai?
The average prices per square foot are at all-time highs, and rental prices have increased by up to 20% in key neighborhoods last year. - What are some of the solutions being proposed to alleviate traffic congestion in Dubai?
The government is exploring high-tech solutions, including remote work options, staggered and flexible working hours, and the introduction of a road toll system.
