The implications of Expo 2020 for Dubai’s real estate scenario
There seems to be an upsurge in the real estate arena of Dubai thanks to the years of reforming the real estate policies to draw in the investors. The reforms seem to be working now that the investors are gaining their confidence back about the UAE real estate market. The initiatives that have brought about this change include increasing the flexibility of debt payments by the financial institutes, favorable plans for payment, and long term visas for the professionals and investors.
It seems that the confidence of the investors started rising ever since the news of Dubai Expo 2020 was announced. This was good news for the real estate investors interested in the country because it was a sign of the potential of the market for attracting buyers. In fact, a couple of investors have already delivered projects worth multimillions of AED. And, the good news lies not just in the fact that they have delivered the project, but rather in the fact that most of these projects have sold out completely. After all, the popular belief in the real estate world says that the delivery of the project is as important as it is to get it to sell out. Don't use plagiarised sources.Get your custom essay just from $11/page
Now, let’s take a look at some of the data to get a better understanding of the market conditions. The last quarter of last year hit a record of sorts by closing nearly five thousand real estate transactions. This was the highest property sales recorded since the year 2008, and the residential stocks of Dubai are projected to hit 6, 37,000 in the year 2020.
The Expo 2020 has been touted, by the Dubai government, as the largest event to ever take place in the UAE. Dubai is to play host to one hundred and ninety countries, and millions of visitors from all over the globe are slated to join the event. The event will carry on for one hundred and seventy-three days, and have various themes like sustainability and innovation in the Arab region.
There is clear evidence of the fact that the Expo has changed the face of the economy for the past hosts of it. There is a noticeable growth in local economies and the price of real estate.
Dubai is ready to spend billions to make Expo the biggest event ever in the world. The organizers are expecting eleven million visitors from the UAE and fourteen million from overseas. Going by the recent reports, the Expo 2020 is slated to prove a boost of AED 122.6 billion to the local economy, along with creating over 49,700 permanent jobs this year. Investors are also confident that it will lead to the overall development of the business scene in Dubai.
The investments made in Expo and the money spent by the government in building its infrastructure are one of the main factors keeping the country’s economy on the right track during recent times. It has been predicted that the Expo can help the economic growth of Dubai to range from 3.8% to 4.5% in the near future.
The Expo will create job opportunities in varied sectors like tourism and travels, engineering and infrastructural development, architecture, and service industries.
With the right amount of push from the Expo, the real estate sector of Dubai is on a roll now. The developers expect that after the Expo, investors will want to make the country their base because the infrastructural facilities and regulations can make it as lucrative as the other global cities, such as Paris, London, or New York.
Though the leading investments in real estate come from the Chinese and the local Emiratis, the developers have noted that even Indians are now considering Dubai for investments in real estate. Dubai has the luxury factor coupled with great prices compared to what is available in their home country, which attracts the Indian investments. For instance, residential properties have an average price of AED 1,000 – 12,000 per sq. Ft. in Dubai, which is roughly INR 20,000 – 24,000.
The time to invest in the real estate scene of Dubai is right now because of factors that go beyond the usual buying and selling properties. When you think of the average returns you can earn anywhere in the world, the figures stand at five to six percent, and maybe seven to eight percent on a great day. But, Dubai can easily take it to ten to twelve percent for all day