The Value Of Waterfront Living

Carla Issa, senior research analyst at Property Finder, explains how land reclamation projects have impacted the value of real estate in the UAE

- Carla Issa

IN AN ERA where almost anything seems possible we seem to be faced with two unique issues, each of which are moving in diverging directions.

The first is due to the effects of climate change which are forcing people to have to move away from the sea – either because their homes are flooded or the local agriculture can no longer sustain the population. The second concerns people who are living on land being built into the sea – a process called land reclamation.

It is a unique paradox and delving into both occurrences provides some interesting insights into both the true cost and the value of the land.

A number of countries have already been affected by the effects of climate change, such as the island nation of Kiribati which is seeing the sea surrounding its coastline rise four times faster than the global average. In 2014, the Kiribati government sought approval to purchase a Fijian island for $8.8m in order to permanently relocate its citizens.

Estimates predict that by 2050, 700 million people from large countries such as Bangladesh and favored destination spots such as Seychelles and the Maldives, amongst others, could be displaced due to the effects from climate change. This reality begs a lot of tough questions such as will they be able to seek asylum in other countries? Will their governments be able to find an alternative place for everyone to live? Are they just expected to perish?

While many are finding their homes subsumed by water, others are extending land and therefore new properties into the sea. This is done either to increase the value of the real estate, which is a prominent practice in Dubai and Malaysia or to otherwise increase their land mass should they inhabit a small place, such as Singapore – one of the world’s most densely populated areas.