By Melchor Alcántara
When observing the real estate success achieved by some Asian cities, one almost loses perspective when analyzing the factors that have converged to achieve such performance in such a short period of time. This is especially true given that the development seen in these cities has been largely driven by private companies that, for reasons we will analyze in this article, have been motivated to invest heavily, taking on a significant degree of risk in unique, iconic projects—virtually unsurpassed by today's standards—in distant latitudes where, just 30 years ago, any level of progress was inconceivable.
Cities like Dubai, which in less than a generation has become an impressive center for investment, commerce, and culture, with real estate development unprecedented in human history, serve as examples and guides for achieving remarkable economic development. While there is no precise recipe for such success, it is worthwhile to briefly analyze what experts call the Dubai Model in order to identify some of the essential ingredients that our island can emulate to further perpetuate our already remarkable real estate development.
This growth in Dubai is attributable to its so-called "ABS model," which aims to attract businesses, promote brands, and lead state development; it keeps its growth program going even during economic crises.
The leadership of this Arab emirate operates with a pragmatism that allows it to adapt quickly and easily to fluctuating economic conditions. This is why it has experienced tremendous economic growth and has benefited from proactive and visionary leadership that has transformed a small city-state into a major international trading hub, a entrepôt . The Dominican Republic, in particular, due to its strategic location, could become a powerful center for trade and commerce. To achieve this, however, we need large-scale planning with a forward-looking vision, something currently lacking in our political class.
In terms of promoting its own brand, Dubai has not only effectively marketed tourism but has also attracted foreign investment to achieve its growth ambitions. Like other cosmopolitan cities in the West, Dubai has expressed its spectacular development through unprecedented architecture, which is tied to urban planning patterns borrowed from the future that defy gravity. It already boasts around 150 skyscrapers, more than any other city except New York and Hong Kong.
Factors such as low crime rates, unprecedented state-promoted infrastructure investment, urban planning programs with relatively short expiration periods and rapid updates, and transparent labor regulations make this small Middle Eastern city a unique, world-class attraction.
The Dominican Republic, less than four hours away by plane, possesses strategic qualities that we could leverage to our advantage with an aggressive program to improve these vital factors for development capable of attracting the best investors in the region. Our next step on the real estate development roadmap is precisely to attract international buyers to our projects, for which it is essential to address the aspects mentioned above, and where massive government intervention and investment play a crucial role.
The author is:
ONIC Coordinator
Lawyer
Financier
