Dubai to Catalyze the Pace of UAE’s Real Estate Sector
As the Expo 2020 Dubai countdown starts, the real estate industry is preparing to take advantage of this opportunity. Due to rising revenues and zero tax on investment, the City has been the most attractive investment location, notably in immobilization in the last decade — a combination that does not occur in any other area of the globe. From Friday 22 January 2021, UAE citizens and visitors will attend the ‘Terra — Sustainability Pavilion’ of Expo 2020, Dh25 per ticket. A greywater recycling system reduces water consumption by 75% in landscaping. The pavilion will provide real-life solutions to help protect the environment.
Drivers of growth:
The benefits of Dubai’s Expo 2020 real estate industry has expectations of many, thanks to a list of positive political reforms and schemes initiated by the US administration such as Golden card visas, investment visas, 100% foreign ownership of businesses, manageable payment plans, long-term residence options for professionals and flexibility in debt payments offered by financial institutions,
In addition, Expo 2020’s performance will be boosted by ICD’s and Dubai South’s recent undertaking to launch “Dubai Worldwide Connect ( DGC),” a project aimed at connecting global wholesale purchasers and sellers. DGC is a wholesale market platform that connects buyers and sellers worldwide. The project will positively influence the competitiveness of immobilization, infrastructure, economy, and trade flows that will stimulate immobilization sales. These arrangements will enhance investor trust and encourage additional investment in the UAE real estate sector.
Predictions & Forecast:
The cost of building the exhibition site and accompanying infrastructure is expected to be US$6.9 billion. The Expo is expected to draw significant investments in Dubai’s UAE economy. Here are some of the forecasts for the impact on the UAE economy of Expo 2020.
- Ernst&Young (EY) study – Expo 2020 Dubai is predicting 2019, contributing AED 122.6 trillion (GVA) to the UAE GDP by 2031. The big event is also expected to support up to 905,200 FTEs in the UAE by 2031, equating to about 49,700 FTEs annually.
- According to Jones Day analysts, Expo 2020 will earn almost $23 billion in emirates, equivalent to 24.4% of Dubay’s GDP between 2015 and 2021 (AED 84.5 billion). These estimates were produced by Jones Day analysts estimating the total expected government spending, participants, visitors, and general trade-related event activities.
- In addition, the Jones Day report predicts that the UAE could attract USD 100 billion to 150 billion in foreign direct investment over the next six years across various industries, including financial services, infrastructure, construction, property, entertainment, tourism, and transportation.
- The event organizers anticipate that the most significant event in the Arab World is projected to add 1.5% to US Gross Domestic Product in the six-month peak period of the World Expo 2020.
Stimulating UAE Economic Growth at Expo 2020 to 4.5%:
Expo 2020 will be a significant boost to UAE economic growth of less than 2 percent by 2020. The analysts believe that Expo 2020 would lead to unprecedented levels of UAE economic growth, with GDP growth rising to 4.5% in the following years. Expo 2020 will positively influence the employment market and provide a pool of possibilities across all fields, including property management, infrastructure, travel, tourism, engineering, development, and architecture.
A significant push for the real estate sector of the UAEs:
Immobilien experts think that Expo 2020 Dubai will boost the expansion of the UAE real estate sector. The growing interest of Chinese and Indian investors due to attractive government initiatives is fantastic news both for the UAE real estate and property managers. According to the Arabian Post, Expo 2020 organizers have granted AED 11 billion worth of OK building contracts to host this event. Expo 2020 Dubai will also raise the average price of AED 1,000 to 12,000 sq. ft. in residential homes in Dubai.
Immobilien specialists predict a significant shift in Dubai’s value for money and sales on Expo 2020 Dubai. The ‘Expo’ impact will lead to sold-out hotel accommodation and boost the labor market. This major event will guarantee that the real estate sector in the UAE continues to flourish despite market changes, such as falling oil prices, VAT implementation, and Covid 19 downturn. Expo 2020 will encourage tourism in Dubai, which will improve the occupancy rate and the short-term rental market.
The Land Department of Dubai (DLD) can also play a significant role in expanding the real estate market, as it looks forward to tokenizing property units. This opens opportunities for international investment and leads to price stability. Expo 2020 will be honored to be attended by wealthy venture capitalists, real estate fans, and prospective expatriates, providing Dubai a favorable opportunity to display everything it has to offer on a worldwide scale. Commercial projects in the region of 1.5 million square feet, including IKEA and Ace Hardware already in Dubai South and Siemens, are planned alongside residential complexes.
The Expo 2020 event is anticipated to improve UAE immobilization due to investors’ optimistic mood and the increase in economic activity. The event will be a significant driver for the decreasing trend since 2017 of residential property prices in Dubai. Before launching, Expo 2020 is projected to bring over 60,000 new homes to the market. The industry will also dramatically affect recent months on suitable government measures such as easing ownership and visa rules. This will work well for the immovable industry and offer even better circumstances for immovable growth and development. The great event will have a positive pricing impact and attract additional investment soon.