Real Estate

Artificial lagoons making waves in Dubai

Creating water features in the desert is expensive and ambitious, but they draw premium prices from residents seeking relief from the heat

August 21, 2024

A rendering of Azizi Developments' Venice project. The planned swimmable water is being created with global company Crystal Lagoons — A rendering of Azizi Developments' Venice project. The planned swimmable water feature is being created with global company Crystal Lagoons

Dubai is no novice when it comes to ambitious, groundbreaking, artificial water projects – from the world-famous Marina to the canal that established Business Bay as a prime neighbourhood.

In recent years, the construction of artificial lakes, canals, lagoons and other water features has proliferated in the emirate, moving from the public infrastructure realm into the residential development one.

Today, Dubai’s main roads are plastered with large advertisements for all manner of waterfront living projects in the middle of the desert.

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Developers, construction specialists and other industry professionals say projects of this kind attract higher-spending buyers’ attention and carry a significant premium. To do so, however, they must still meet high quality standards and respect the real estate mantra of “location, location, location”.

According to Farhad Azizi, chief executive of Azizi Developments, artificial water features provide a “holiday-like” experience of relaxation and luxury, while also offering a degree of coolness in Dubai’s hot, arid climate.

It is no wonder they do so well amid mounting demand for more and more lavish homes in the emirate, he says.

A rendering of the Azizi Developments Venice project in Dubai South

“From an economic perspective, developments with artificial bodies of water often experience higher demand and increased property values,” Azizi says. “The premiums, however, can vary significantly, influenced also by factors such as the property’s location and the quality of the water feature, among others.”

Residences in the Marina, a bustling district whose artificial canal channels sea water, command higher prices and rents than those in nearby Jumeirah Lake Towers, a quieter area built along a dug-out, closed-off watercourse that has at times been plagued by bad smells and mosquitos.

“I hate the term ‘location, location, location’, but it’s very valid,” says Matt Myers, an assistant professor at Heriot-Watt University in Dubai. “People look at distance from work, traffic, that kind of thing – it depends on the individuals and what they need. But again, water features are part of what people want. We can see every project that has water has premium prices.”

Farhad Azizi: "The premiums can vary significantly" depending on the quality of the water feature and the building's location — Farhad Azizi: “The premiums can vary significantly” depending on the quality of the water feature and the building’s location

The type of artificial body of water also influences the cost and challenge of construction challenges as well as the audience.

Those that are meant for fish and wild animals, not for humans, are simpler and cheaper to build – aside from maintenance issues that can trigger smell and insect problems. They might also attract older, childless adults looking for quiet and a more nature-like environment.

Swimming lagoons – a favourite for families with kids or younger adults looking for recreation – require a completely different level of care and sanitation, and are far more resource-intensive to keep safe, clean and at a comfortable temperature.

Azizi says preparing to excavate, securing the lining, sourcing the water and integrating smart management systems to control water quality and flow, and energy consumption, are among the biggest challenges in building large swimmable lagoons.

“Addressing potential leakage without draining the lagoon can also, for example, require the use of specific materials that allow repairs while the water remains in place,” he says. “These are all important considerations in such ambitious projects.”

Crystal Lagoons has more than 1,000 projects across 60 countries, among them Swanlake North Coast in Egypt

Venice in Dubai South and Riviera in Mohammed Bin Rashid City are two Azizi projects in development that encompass especially ambitious swimmable lagoon designs.

For both its Dubai projects, the developer partnered with Crystal Lagoons, a specialist in the construction of such artificial water features. It has more than 1,000 ongoing projects across 60 countries, including the US, Egypt, Saudi Arabia and India.

Crystal Lagoons’ global business director, Jean Pierre Juanchich, says such construction in the Middle East needs to account for extreme weather conditions such as intense heat and water scarcity. However, when successful, swimmable water features can increase sales rates by more than 70 percent and push surrounding residences’ price per square metre “exponentially” higher.