AAs the renowned Expo of world exhibition 2020 in Dubai draws closer, the reverberation of the Expo results were observed in the real estate market as well.
Real estate agents and property speculators believes that Expo 2020 will have positive effect for Dubai property market.
As the countdown starts, Dubai has a certain vibe coming from every sector and with Expo 2020 on the horizon, a question should be raised.
How many people actually are aware of this Expo and how it affects the real estate of Dubai.
This aims to make the upcoming mega international event — Expo 2020 Dubai — one of the best in the history of Expo exhibitions. Abdulrahman Al-Saleh
The world expo is not a new concept by any means, where London hosted the First World Expo in 1851.
This expo is an extremely important universal exhibition that attracts the leading company around the world and explores the networking opportunity.
Expo 2020 is a series of technological event that hasn’t been held in for over 100 years in the United Kingdom which plays an important role in boosting the economy and international profiles of Dubai to a great extent.
Expo 2020 planners of Dubai are totally conscious of the need to deliver long-standing benefits, following a blueprint of preceding host of World Expo.
The World Expo 2010 in Shanghai paid dividends in real estate and improved the infrastructure and it was reported that over 73 million visitors were there from 250 countries.
The new attendance record was set with around 1.03 million visitors for a single day.
The Expo effect of Milan Expo 2015 increased the property price steadily and gave a platform to promote itself as the investment destination.
These records, by any standards, are highly impressive and an indicator for how influential for the local market the winning vote may reach, especially considering the profits gained in excess of around $157 million USD.
Dubai, in like manner, has a legacy plan in place with its population estimated to double to 5 million by 2030.
The site could eventually become an established residential destination as Dubai expands with growing demand for affordable housing and family-friendly amenities that contribute to a high quality of life. Additionally, the site is well-positioned as a residential community given its proximity to three economic engines: Dubai World Central, Jebel Ali Port and Kizad. Vidjen
Dubai Expo 2020 will be held under the banner ‘Connecting Minds, Creating the Future’ is the chance to bring Dubai to the world and world to Dubai, attracting the high profile endorsement from United Kingdom, France, Canada, Netherlands and individuals such as Bill Clinton and Bill Gates. If it wins, Dubai will be the first city hosting the world exhibition in the Middle East.
Through this Expo Live project, the Dubai government have focused on creating world-class infrastructure, logistics, city transportation, created quarter million more jobs for the next 6-7 years by engaging the residents.
As of late 2018, the three leading industries for the growth of jobs are manufacture, construction and real estate. Dubai statistics Centre claims that there will be a similar level of growth in these sectors in 2019 as a huge amount of construction is still due for the Expo 2020. Real estate developers are tempted to limit the size of apartments to make their cost more affordable, according to a high profile brokerage firm – getting the value for money is the priority for buyers.
It is believed that similar trends will be continued for the next two years since there is a huge number of units planned to complete by 2020 end.
This year was a buyers and renters market, with sales prices and rents sliding across several areas. As we move into 2018, further inventory will float on to the market and provide even more attractive opportunities, piquing the interest of a larger base of consumers to start considering owning a home in the UAE. The growth in the economy coupled with more affordable housing options, should provide for a healthy and positive trend for 2018. -He Said
Expo 2020 planners awarded 47 construction contracts which worth 11 billion dirhams to organising the event.
The real estate pundits of Dubai claims that there will be vast transformative effects for Dubai like a vertiginous hike in property value, sold out hotels and a boom in the job market. But this much-hyped “Expo effect” has to be realised that these standards were before the oil prices decline, VAT introduction and a diplomatic crisis. Now with the construction work is well underway 31 months ahead of the opening of the event, the real estate market remains in the doldrums. The residential property prices of Dubai declined over 10% in 2017 and according to S&P, this ‘three year downturn’ of Dubai’s property market will continue until 2020. Still, S&P claims that real estate could be benefitted from the Expo event with the attached potential increase in economic activity and positive business sentiment.
“There’s still time to see if the Expo will lift property values,” said James Lewis, partner and general manager at Knight Frank Middle East. “But there is just so much oversupply.”
If this over-hyped Expo effect indeed a reality, we must see the impact soon.
