Expo 2020 and its impact on Real Estate in Dubai by Aakarshan Kathuria, RiseUp Real Estate

September 23 01:39 2021

Dubai has been thriving as not just the influx of tourists from all corners of the world has been at its peak, its lucrative real estate sector witnessed a boom as global investors looked to tap on the profitable market.

But Covid-19 and the subsequent restrictions dampened the spirits of both tourists and investors and businesses stared at the uncertainties.

Cut to Expo 2020, the marquee event that is expected to turn things around as UAE eyes recovery.

Dubai is one of the most powerful financial centers in the world; low interest and mortgage rates, an effective Covid-19 vaccination drive, and new visa rules for investors offer a favorable scenario for anyone keen to live, work, or trade in Dubai.

The World Expo 2020 is likely to encourage economic and cultural growth in Dubai, it is likely to lead to GDP growth over the 3.5% estimate and strong economic growth. According to the Dubai Chamber of Commerce and Industry, around 42% of ongoing projects in the UAE are in Dubai.

Dubai property prices after Expo 2020 are expected to stabilize as potential short-term visitors for the event can turn into residents in the long run.

Around 25 million people are estimated to visit the Expo 2020 in Dubai, which will impact economic activity and eventually growth. Around 300,000 jobs in all key sectors such as real estate, hospitality, tourism, manufacturing, and healthcare, among others are likely to be created as the Expo poses an opportunity for Dubai to attract foreign investment.

Dubai holds greater significance by hosting World Expo as it becomes the first city to host such large-scale international events in the middle east. Dubai will benefit from various sectors including hospitality, retail, transportation, banking, and real estate.

The emirate had proven itself to be resilient in the face of several challenges that have gripped the global economy in view of the pandemic.

The Expo 2020 is expected to usher in a big boom for Dubai as real estate prices have started to climb already and developers are eager to start constructing new apartments and villas.

The Expo has evolved as a platform for connecting civil society and government to face global challenges with various ideas across the world, based on the solutions and best practices. The UAE government’s investor-friendly policies, such as the Golden Visa and the 100% ownership laws, have eased things for people to set up businesses.

Dubai looks poised to pip conventional investment hubs such as Hong Kong and Singapore in the coming time, especially after Expo 2020, with competitive property rates and a favorable business environment.

Dubai recorded 1,188 sales valued at AED 4.7 billion in the property market in August this year, according to the Dubai Land Department. 

August 2021 had 5,780 transactions worth AED 14.97 billion, making it the best August on record in the past 12 years. This brings the year-to-date total to 37,537 sales transactions worth AED 88.12 billion. In just eight months, the value of real estate sales transactions is 22.61% more than 2020 as a whole. The whole of 2020 had 35,401 sales worth AED 71.87 billion.

On the volume of sales transactions, the off-plan market witnessed 2,599 sales transactions worth a total of AED 4.95 billion. This is the highest value of off-plan sales transactions the Dubai real estate market has seen in over 11 years.

The last time the market saw this much money being pumped into off-plan properties was early October 2009. The secondary market recorded 3,181 sales transactions worth AED 10.02 billion.

Moreover, the luxury property market in Dubai has already started recovering, and the affordable property market is set to follow due to the rising demand.

Dubai Expo is set to open in October 2021 after being postponed a year due to the Covid-19 pandemic. The event will be attended by trade delegations from nearly 170 nations, bringing together think tanks, academia, micro, small and medium-sized businesses, and other corporations alongside governments, state-run agencies, and other public-sector bodies.

Dubai’s real estate market has continued to recover from the Covid-19 pandemic as markets globally continue to struggle in the face of a second or third wave and rising uncertainty.

Sustainability will be a major theme in this year’s Expo as the world deals with several challenges, including environmental. Hence, sustainable living is likely to gain currency ahead of and post-Expo.

Football mega-event FIFA world cup is set to take place next year in Qatar, and Expo 2020 is likely to have its share of impact in the developments leading to the football world cup. As both UAE and Qatar prepare for their respective big-ticket events, both countries are also expected to benefit from the success of these events as hospitality and tourism are set to get a boost on both sides. Dubai will certainly be one of the busiest hubs of economic activities in the next few months. The success of the Expo will set the pace for the Fifa World Cup as tourists will trickle in, and so the investment as economic activity picks up. 

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Company Name: RiseUp Real Estate
Contact Person: Aakarshan Kathuria
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Phone: +971 4 388 7440
Country: United Arab Emirates
Website: https://www.riseupholding.com/