Expo 2020 win to boost sector
The UAE's successful bid to host the Expo 2020 is bound to spur growth in the real estate sector, according to research carried out by the consultancy CBRE. At the very least, the event would be a spectacular PR opportunity for the country and at the best, the Expo would act as a springboard to establish Dubai as an international and globally-recognised city.
The economy of Dubai could have a massive boost over the next seven years and beyond as a result of the Expo. Jones Lang LaSalle, a global real estate consultancy, says the direct impact of Expo 2020 win will be on investor investment, leading to rise in asking price for both plots and ready developments in areas close to the Expo site. At the same time, experts suggest there will be stable and sustainable growth in the long run.
According to Mat Green, head of research and consultancy, CBRE Middle East, "Development projects such as the construction of the Dubai Metro Purple Line and the work in and around the Dubai World Central, the actual site of the expo, are likely to be expedited. The new airport will also witness significant development activities with further expansion of the airport, fast tracking its use as a passenger hub and becoming a catalyst to development of air transport infrastructure - a key driver for the sustained economic growth of the emirate. Importantly, this result will also lead to the creation of new employment opportunities in Dubai, strengthening the emirate's position as a key financial hub in the region."
Experts are quick to note that while the expo will result in long-term benefits, the short-term impact needs to be manage carefully to avoid the inevitable boost in sentiment translating into excessive price growth or over development.
As a result, Emaar's decision to take a stand against real estate agents who buy off-plan developments to flip them to end users, is very timely. The developer said in a statement that it had asked agents to not resell off-plan properties until the unit is completed and handed over.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. The UAE's successful bid to host the world expo is bound to provide a push the market, projecting the sector into growth as long as measures are taken to control short-term effects and prevent over development. Major developers across the city are rushing to launch new projects in the venues near the Expo. We hope our round-up of key stories and expert opinions have helped in understanding the changes the emirate will witness as the major global event approaches. We'll be following up on all of these developments to update our readers in the following issue.