The Dubai Water Canal is all set to start flowing starting November. However, scant details have emerged of the residential, hospitality and other leisure attractions that will flank the banks.
The only projects announced are Marasi Business Bay, Aykon City, Sobha Hartland and Al Habtoor City. The opening of the canal will see the launch of more developments or redevelopment of existing projects. It could also result in a rise in property prices and rents of units with a direct canal view.
Developers are sure to leverage the waterfront to add more value to their property portfolios. So, will projects in the vicinity of the canal such as DIFC, Business Bay and Downtown face a spike in rents or capital appreciation?
"Projects directly on the canal banks or overseeing it will face a price hike. However, communities such as DIFC and Downtown have their own attractions. Business Bay prices will be impacted since the canal flows through it," says Niraj Masand, director and co-founder of Banke International.
Various hospitality elements are also expected to come up on the stretch extending from Business Bay until Jumeirah Beach Road. In anticipation of this boom, several leisure attractions have already come up such as Box Park and City Walk. These entertainment hubs will complement the leisure offerings on the canal banks.
"Owners of plots adjacent to the canal are likely to create new avenues of entertainment to attract tourists and residents," adds Masand. The canal is expected to become an anchor for developments surrounding it. It will also transform Jumeirah into a freehold property hub with several residential towers expected to be launched.
With the lure of the waterfront, the Dubai Water Canal will surely be a game changer for the city's property industry.