By Jamie Moulton, Senior Data Analyst at JustProperty.com, an online real estate listing portal headquartered in Dubai.
Ever since the Emirate of Dubai won the right to hold Expo 2020 back in 2013, its capital, the city of Dubai, has been gearing up to benefit from this major event. The World Expo in Dubai is the first of its kind to be held in the Middle East, North Africa and South Asia region. According to the timetable, the Expo will be held between October 20, 2020, and April 10, 2021. The Expo is considered to be a huge turning point in Dubai’s future as all sectors from hospitality, tourism, retail and transportation to banking and real estate are ready to reap the rewards as a result.
One of the major sectors in Dubai that is expected to witness a substantial growth is the real estate sector. Even though Dubai’s real estate sector has been showing a slow pace lately especially with the spike in rent, it is expected to witness high levels of growth in the coming two years. Which is why, now it is the perfect timing for real estate investors to invest in Dubai’s real estate market, and here is why!
1. Plenty of upcoming infrastructure and construction projects
Leading up to Expo 2020, Dubai has taken serious steps towards developing real estate projects and infrastructure. All of which will drive real estate investors from inside and outside of Dubai to invest in such a growing market. It is worth mentioning that in 2016 Expo 2020 has awarded 1,200 construction contracts worth $2bn, whereas in 2017 it awarded 47 construction contracts worth $11bn.
From Dubai Water Canal, Museum of the Future, Deira Islands, Dubai theme parks, Jewel of the Creek and The Tower which is designed to be bigger than the Burj Khalifa, the construction sector in Dubai is in full swing getting ready for Expo 2020.
2. Prosperity of the tourism sector
According to many reports, Expo 2020 is expected to attract around 25 million visitors, which in return will lead to the prosperity of the tourism sector. Accordingly, the entire hospitality sector is expected to expand to fit the huge number of tourists anticipated to visit the emirate during Expo 2020. Ninety-nine hotels are currently under construction and it is expected that in the coming years supply will increase.
3. High demand for apartment buildings
Expo 2020 will create hundreds and thousands of job opportunities in various sectors, including construction, retail and hospitality. According to a recent report, the Expo is expected to create around 300,000 jobs. Which is why it is a must to develop residential projects near the location of the Expo to house the workforce and keep them close to the event’s site.
These units will be available for rent on major Dubai real estate portals with affordable prices to cater to the workforce needs and lifestyle, where every portal will be offering a wide variety of units of various sizes to meet all needs, and all in key locations in the emirate to allow easy access to the Expo site.
4. High return on investment
Property prices are expected to rise closer to the year 2020 and since savvy real estate investors are always in the hunt for long-term growth potential, they are eyeing investment opportunities in Dubai’s real estate market. During the entire period of the Expo, wealthy real estate investors are intending on investing immediately in Dubai’s growing rental market. Buying to let from this moment is what will real estate investors are planning to do where they are targeting projects in key locations near the event.
5. Ongoing investments
As mentioned above, Expo 2020 will create a wide range of investment options. Thanks to the Expo, Dubai’s appeal will rise from this year forward, and ongoing investments in various markets will keep flocking. By the end of the year 2021, the Emirate of Dubai is expected to preserve its dominance of the Middle East’s real estate landscape. In the years to come real estate investors will look to Dubai’s real estate market as a golden opportunity for continuous profit.
6. Economic growth
Although the exact number is not yet determined, Expo 2020 is expected to add a huge amount of Emirati dirhams to Dubai’s economy. However, according to estimates, the Expo is expected to generate more than 25 per cent of Dubai’s current gross domestic product. All of which boosts the emirate’s economic growth and makes it a fertile market to do all sorts of business.
7. Investor-friendly payment plans
Since Expo 2020 is expected to increase the number of investors in the real estate market, Dubai has prepared what is called “investor-friendly payment plans”. Offering a number of flexible payment plans, Dubai’s government will bring greater ease to buyers with extended payment terms and increased flexibility in post-handover repayments.