Why Are Skyscrapers in Dubai Unaffordable for Average Workers?

South of the Persian Gulf lies a city that perpetually stands out on the global stage—Dubai. Known for its modern skyline and opulent lifestyle, it's a vision of opulence that's hard to resist. Yet, even as it hosts towering skyscrapers and grand commercial buildings, the question lingers: why are rents still unaffordable to the average worker?

The Complexities of Real Estate Development

While the abundance of wealth in Dubai is indisputable, the core reason for unaffordability in the rental market is multifaceted. For starters, the primary objective of building skyscrapers and commercial hubs is not to provide accommodation for the general populace, but to ensure a steady stream of revenue for property developers. These luxury units are often purchased by the ultra-wealthy or kept as investment properties, further driving up the value of these assets.

Expensive Propertization

Constructing skyscrapers is an expensive endeavor, partly due to the unique challenges involved. Every additional floor requires substantial structural work like the lifting of the entire building to accommodate the new upper floors. Moreover, the structural costs associated with high-rises can be prohibitive, making such real estate unattainable for most. In areas where the wealthy don't dominate, local governments often step in to subsidize these costs, but in Dubai, the focus remains squarely on catering to the ultra-wealthy.

The Exclusive Club of the Ultra-Rich

Dubai's real estate landscape caters primarily to the ultra-rich and celebrities. The city strategically avoids socializing these glittering elites with the everyday worker. This is evidenced by the clientele one might encounter, such as:

Retired U.S. Presidents and their spouses, who can afford to travel and may visit for personal reasons. Movie stars and elite personalities like Elton John, Tom Cruise, and Bill Gates. Royal figures like Al Roker's wife Debra Roberts, and sports legends like Michael Jordan and Tom Brady.

While not all these individuals may visit each other regularly, the presence of such figures symbolizes a barrier between the wealthy and the working class. This exclusivity is deliberately maintained to preserve the lifestyle and vibe Dubai has cultivated.

Impact on Average Workers

This gulf between the ultra-rich and the average worker has significant implications for the local housing market. While luxury properties soar in value and exclusivity, the working-class struggle to find affordable housing. The disparity is stark, with local residents and workers often shut out of the real estate market that appeals to the ultra-rich.

Conclusion

The question of why rents in Dubai remain out of reach for the average worker is a pressing one. It underscores the complexity of urban development and the importance of balancing the interests of the general population with the needs of the wealthy. As the city continues to evolve, it's crucial to consider how to make the benefits more inclusive and equitable for all its residents.