1. Dubai’s Evolution and Real Estate Revolution

Dubai’s metamorphosis from an oil-dependent city in the 1970s to a modern metropolis was spurred by the oil boom. However, the real estate market faced a slowdown post-2014 due to falling oil prices, resulting in economic challenges and oversupply concerns.

2. Sheikh Mohammed’s Strategic Intervention

In response to the real estate challenges, Sheikh Mohammed Bin Rashid Al Maktoum initiated a committee to evaluate and regulate construction requirements. Comprising major developers like Emaar and Nakheel, the committee aims to coordinate property supply and demand, enhance competitiveness, and prevent duplication of projects.

3. Impact on Residential Market

Dubai’s residential market, with thousands of units completed and more scheduled, faces adjustments as construction reduces. The committee’s efforts may take years to balance the oversupply, impacting the dynamics of Dubai’s real estate sector.

4. Nairobi’s Real Estate Landscape: A Tale of Growth and Challenges

Mirroring Dubai’s pro-business environment, Nairobi experienced a real estate boom from 2005 to 2010, driven by a growing middle class. However, oversupply concerns arise due to developers competing to build high-rise apartments in key areas like Kileleshwa and Kilimani.

5. Government Intervention in Nairobi

Kenya’s government capped interest rates in 2016, encouraging developers to initiate projects with increased credit requirements. Oversupply in Nairobi results not from a lack of supply but limited buyer access to credit. Annual housing shortages persist, emphasizing the need to address credit access for both developers and prospective homeowners.

6. Balancing Act: Demand in Affordable Housing

Despite oversupply concerns, demand for affordable housing persists. Bridging the credit gap is crucial to finance developers and cater to the demand in the affordable housing sector. Nairobi’s real estate sector faces a delicate balancing act to meet the diverse needs of its growing population.