Will Property Hold its value after EXPO 2020?

 

 

EXPO 2020 has helped to facilitate significant growth within the Dubai property market.  As the demand for properties has increased considerably, so too has their value. The emerging communities in the surrounding neighbourhoods to the Expo (Dubai South) have experienced the largest growth. Clever infrastructure connecting Dubai to the newer areas has helped them grown exponentially as they become highly sort after destinations for investors. After a recent decline in the Global property market, Dubai has seen dramatic growth in both the value and volume of property transactions, coinciding with EXPO 2020. The steady increase in property prices is expected to continue after the Expo has finished due to mainly an increase in foreign investment which will be sustained in part through numerous Dubai Government initiatives.

 

Leveraging on the increase of tourists visiting for The Expo, there has been an upsurge in demand for properties that are both built and purchased off the plan as foreign investors foray into the Dubai property market. Since the announcement of the 6-month global event was made, the areas surrounding the Expo site have been developed significantly to include residential communities, shopping centres and community leisure spaces. These developments will continue to flourish post-Expo. In addition to this, nearby Maktoum airport is currently under expansion and metro links are planned to connect these newer communities to the rest of Dubai. These additions make it logistically easier to move further out of the Dubai city centre and have made the areas more attractive for buyers and investors alike.

 

Contributing to the property growth in Dubai are the measures taken by the Government to grow and sustain tourism after the lull of the pandemic. Welcoming back tourists post COVID and introducing visas such as the Retirement and Golden Visas are two measures to encourage people to visit and invest in Dubai. Their in-depth advertising campaigns highlighting both the Expo and Dubai as a city have sparked interest around the world. The surge of new visitors meant Dubai was able to showcase its investment potential and openness towards foreign investment. The Government released their ‘Dubai 2040 Urban Master Plan’ which focuses on sustainable urban development over the next 20 years. Their aim is to enhance the quality of life offered and reinforce Dubai as a destination for both residents and visitors into the future. Included in their master plan is the development of vibrant, inclusive communities and the implementation of government models to support future sustainable growth and development.

 

EXPO 2020 is the first major global event post-pandemic and has highlighted the thriving economy of Dubai. The rapid commercial expansion needed for the Expo itself meant an increase in industrial warehouses and logistical procedures amongst other sectors. The influx in tourism has seen demand for short term property rentals in newly built buildings such as the Majestic Residences in the surrounding Expo areas significantly increase. This increase has driven up the value of property around the city. Local companies have shown they too believe the growth is long-term through their commitment to developing Dubai South. Al-Futtaim have invested in building an Ikea store amongst others to ensure the area remains populated and attractive after The Expo comes to an end.

 

Transitioning into District 2020, Dubai South, the EXPO 2020 site and surrounding areas were developed to remain long after the Expo ends in March. The sustainable smart city has increased investor interest in Dubai through its innovative design features and infrastructure connecting it to the rest of the city. The reduction of COVID restrictions and international boarders being open has meant an influx of tourists coming to Dubai that are able to see first-hand the benefits in investing in such a progressive city. The Government initiatives in place help to stabilize the market and limit foreign investment risks, again making it more attractive to invest in Dubai. The increase in investments has driven up property value and it is these measures that help to ensure that both property demand and value in Dubai will be sustained.