Hyperloop and its Impact on Dubai Real Estate - liveandloveoutloud.com

Hyperloop and its Impact on Dubai Real Estate

In the recent past, the Hyperloop transportation concept has been receiving a lot of attention and discussion across the world. The term was coined by Elon Musk, founder of Tesla and SpaceX in 2012. This comes at a time when developed countries are looking forward to establishing advanced transportation systems.

The Dubai- Abu Dhabi Hyperloop, which is expected to start functioning by 2021, will be the first in the world. At a speed of 1200kms/hr, it will take only twelve minutes from Dubai to Abu Dhabi. This will help to cut the travel time that usually takes around 2hrs significantly.

How will the Hyperloop affect the real estate market in Dubai?

1. Increased business and trade

Dubai is the capital city of the UAE while Abu Dhabi is the capital of Saudi Arabia. Since the distance between these major cities will be virtually shortened, cross border trade and business will increase. It will open the Abu Dhabi market to small and medium enterprises (SME) in Dubai while at the same time offer an opportunity to businesses from Abu Dhabi to set branches in Dubai.

2. Increase the supply of capital and labour

Due to the reduced travel time, investors will have the chance to explore investment opportunities in the two cities. For instance, investors from Dubai will consider Abu Dhabi as a land of investment potentials.

On the other hand, the loop will result in the establishment of new trade and commerce centres which will create new opportunities to both the locals and expatriates. People working in Dubai will be able to live in Abu Dhabi and vice versa. As a result, the demand for residential property will increase in both cities.

Dubai real estate agencies are frequently initiating new projects to address the rising demand. Currently, there is a wide selection of apartments for sale in Dubai at different prices to cater to different needs. Also there are a number of new residential projects in Dubai, such as Port De La Mer apartments & Dubai Creek Beach projects, which are quickly gaining attention from investors.

3. Rise in tourism

This will be the first Hyperloop transportation system in the world. People from all over the world, even from developed countries, are eagerly waiting for the loop to start its operations. Currently, only a few countries are working on this kind of transportation system. The Hyperloop will add to the vast array of tourist attractions in Dubai.

All these factors are a clear indication that the Hyperloop is going to impact Dubai’s real estate industry positively. So, if you are an investor, this is the right time to invest in Dubai.