The Expo 2020 and Its Effect on the Dubai Real Estate Market
Real Estate Dubai Companies Have Recorded a Sales Increase Ahead of the Upcoming Expo 2020.
Things are looking promising for the Dubai property market amid the coronavirus pandemic. Many things have changed in the recent past. But it’s the policy changes by the government that triggered property investors' interest in the property market.
Attractive payment plans, long-term residence permits and easy repayments plans by banks and other lenders are among the shifts that set this mood. Furthermore, demand for Dubai properties skyrocketed when the kingdom announced that it will host the Expo 2020.
And even though the event, which is estimated to attract over 25 million people, was postponed to 2021, due to Covid-19, Dubai property developers and real estate brokers alike are gearing up towards the event as they hope to see more sales.
More companies continue to deliver ready-to-move-in properties, with some recording 100% sale out. Keep in mind, the actual report card of the industry is the number of delivered projects.
The government refers the Expo 2020 will be the largest global event ever to be hold in the Middle East & the Gulf. The city will house 190 nations and tens of millions from around the globe. The duration of the event will be 173 days and will include various themes that aim to promote creativity and viability.
Nations that hosted this event before, saw their economies improved significantly. The same is what is hoped for the Arab region. The city and country's economy will sprout and so is property rates. That is how powerful this event is.
The increased government expenditure and the upcoming Expo2020 are among the major factors that are driving the Emirate’s economy recently. According to the Capital Economics in London, owing to the Expo event, the growth of the economy may range from 3.8% - $4.5% shortly.
Besides, the expo will provide more work opportunities in different sectors such as travel & tourism, construction, service & engineering sector.
With no doubt, the Dubai property market with the help of the expo is riding high now. Many property developers believe that most real estate investors would love to set their headquarters in the emirate because the setup and laws are as friendly as other such as Paris, London, and New York.
Even though the UAE nationals and the Chinese being the top property investors in the Middle East, stats show that Indians are developing a keen interesting in the Emirate's real estate business, especially when you take into account the high extreme property rates in Dubai, the luxury aspect has aroused interest real estate Dubai offers.
Residential projects in the city have an aggregate price rate of AED-12000/sq.ft which is approximately 20K-24K rupees. This makes NOW, the perfect time to jump into the market since it isn’t only purchasing and selling but return on investments.
If you assess the average ROI one can earn in other parts of the world, you are looking at 5- 6%. But in Dubai, you are seeing between 10% and 12%.