ANTD.VN - In 2019, the United Arab Emirates (UAE) surprised the world when it put the artificial island of Al-Marjan up for sale for $462 million. This record has turned Al-Marjan into the most expensive island in the world with unimaginable real estate value, opening up a new direction of development to awaken the potential of the marine economy.
Real estate on reclaimed islands: Skyrocketing
Going beyond the traditional limits of marine economic development based on maximizing the exploitation of the strengths of coastal areas, many "super-rich" countries in the world have now boldly chosen to design and construct artificial islands, forming bustling urban areas and marine economic zones. This is not only a solution to expand land funds but also a demonstration of the superior thinking of technology, science and human talent in the process of expanding the territory and expanding the land fund for economic development, of which Al-Marjan (UAE) is a testament.
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| Al Marjan Island artificial island (UAE). Photo source wow-rak |
The island, which is being sold for $462 million, is made up of four artificial islands (Dream, Breeze, Treasure and View), covering an area of approximately 2.7 million square metres. The artificial island boasts an airstrip, a marina and many beautiful coastal resorts, 5-star hotels, picturesque views and luxurious landscapes. According to the advertisement on the Private Islands Online website, al-Marjan is positioned as a luxury destination. With the infrastructure already in place on the island, investors have the potential to make a high profit by owning and operating prime beachfront homes, entertainment, retail and entertainment services.
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| Expensive real estate on the artificial island Palm Island is always sought after by tycoons. |
Besides the artificial islands Pearl (Quata), Hulhumale (Maldives), Kanssai International Airport in Osaka Bay, Japan... when mentioning the miracle of building artificial islands, we cannot fail to mention Palm Island in Dubai. This is considered the largest artificial archipelago in the world, visible from the moon. Palm Island consists of three artificial islands: Palm Deira, Palm Jebel Ali and Palm Jumeirah. Of which, Palm Jumeirah is 5km long, shaped like a tree trunk, spreading out 16 palm branches with a nearly 17km long crescent-shaped outer surround forming a breakwater.
Palm Island is considered the 8th wonder of the world, a breakthrough symbol of construction technology and an affirmation of human creativity and mastery of nature. The super archipelago is now home to many luxury restaurants, hotels, high-end shopping malls, lavish resort villas and world-class entertainment services. Beyond the value of quenching the thirst for housing and tourism services, Palm Island has raised the national value, turning this place into the world's new definition of development class and luxury.
In 2023, despite the constant fluctuations and recession of the world economy, the luxury real estate market in Dubai still reached a record level, far surpassing its competitors in the UK and the US and is expected to firmly hold the throne in 2024. "Golden" real estate in Palm Jumeirah dominates luxury and ultra-luxury real estate transactions in 2023. In its January 2024 report, local real estate consultancy ValuStrat said that villa prices in Palm Jumeirah increased by 3% in December 2023 alone and increased by 31.9% over the same period. Not only does it have a good living environment, investing in real estate on the artificial island also has many profitable opportunities. The rental yield is very high compared to the general level worldwide, about 3 times higher than the normal level.
Spend a lot of money to build artificial islands
The “super-rich” countries are still planning to build artificial islands. Hong Kong (China) is planning to build one of the world’s largest artificial islands at a cost of 79 billion USD. Authorities hope to start building the 2,200-hectare island in 2025, with the first residents moving in by 2032. Hong Kong officials believe that building an artificial island could create more housing for 1.1 million people. Of which, the entire land fund will be mainly for housing needs, combined with commercial and entertainment purposes.
“It is clear that there is no short-term solution that can completely solve the land problem in Hong Kong other than building large-scale artificial islands. This is also the foundation for Hong Kong’s future development,” said a member of the non-profit organization Our Hong Kong Foundation. The artificial islands are also oriented to become Hong Kong’s third economic center.
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| Perspective of artificial islands being planned for Hong Kong. Source: HK Government |
The Danish government and the Copenhagen city government are also working with the planning and architecture firm Urban Power to plan the “Holmene” project, which will build nine artificial islands offshore. The islands will provide about 3 million square meters of commercial and industrial space, and will improve the natural landscape for sports and outdoor activities. In addition, the government will use wind turbines as the main source of energy, and install the largest waste-to-energy plant in Northern Europe.
Danish authorities hope that the nine islands of the Holmene project will become a hub for sustainable business, trade and technology in the future. Brian Mikkelsen, head of the Danish Chamber of Commerce, said the area could become a “European Silicon Valley”. The Holmene islands are expected to attract around 380 domestic and foreign companies when completed, contributing an additional $8 billion to Denmark’s GDP.
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| Perspective of the project to build 9 artificial islands in Denmark called “Holmene”. Source: urbanpower.dk |
In Vietnam, some localities have had successful land reclamation projects. A typical example is Quang Ninh, with more than 40 urban land reclamation projects. Or in Rach Gia city, Kien Giang, in the past 20 years, many land reclamation projects have created more land for people to develop their economy. Many provinces and cities such as Ben Tre have included "land reclamation projects" in their planning. The legal corridor for this activity is increasingly open.
The Land Law, effective from August 1, 2024, has dedicated Article 190 to provide detailed regulations on land reclamation activities. The State encourages organizations and individuals to use capital, techniques, and technology to carry out land reclamation activities; and has policies to support and provide incentives for investors to carry out land reclamation activities in accordance with the law. To put the law into practice, the Government also issued Decree No. 102/2024/ND-CP detailing the implementation of a number of articles of the Land Law, including land reclamation activities. With more "open doors" in terms of legal procedures, the expectation of the marine economy is growing.
Source: https://www.anninhthudo.vn/dao-nhan-tao-chia-khoa-khai-mo-bo-coi-phat-trien-kinh-te-bien-post593663.antd
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