What makes “Expo-2020” so significant for Dubai realty sector in 2022?
It is historically proven that the World Expo events brought prestige and pride to the city and paved a way for economic growth. And even this time, it is no exception. Though the global pandemic led by the COVID-19 virus has had a lasting and somewhat paralyzing impact on economic sectors across major parts of the world yet Dubai has shown resilience in the uncertain circumstances. Even now in 2022, the city has been conducting the Expo 2020 seamlessly, and the event is seen to boost investors’ trust in the coming years, leading to a rise in economic growth – fuelled by the investment in Dubai real estate sector.
Let’s delve into details that how Expo 2020 has impacted the growth of the Dubai economic sector and its real estate market.
Expo 2020 – A catalyst of change
The pandemic has halted all the major events across the world but the UAE government’s successful vaccination drive against coronavirus and drastic measures to curb the spread has resulted in the far lower number of COVID-19 cases – which led to the successful launch of Expo 2020, on October 1, 2021. Expo 2020 has been running successfully and to measure its impact, we need not to wait for the event to end on March 31, 2022. Its impact is huge and already visible in terms of activity and surge in the interest for Dubai properties. The Dubai real estate market has been showing stability signs through increased number of real estate transactions.
According to official statistics released by the Dubai Land Department, more than 80,000 real estate transactions were recorded in 2021, worth over AED300 billion.
And upon further examination, we get to know that 17,942 transactions worth AED46.75 billion were recorded alone in Q4-2021 – indicating the growth of 12.7% on a Quarter-on-Quarter basis and 63.2% on a Year-on-Year basis as compared to Q4-2020.
Comparatively, both the numbers and value of transactions are said to be the highest since Q4-2013. The real estate experts symbolise the success due to Expo 2020, Dubai.
Expo 2020 to boost real estate sector
Expo 2020 is a remarkable global event that is set to provide a massive boost to the Dubai real estate sector. From the development of better and well-planned world-class infrastructure to adding more to the tourist destinations, a large number of real estate developers primarily focused on faster execution of countless ongoing real estate projects, in order to showcase the best outcome to the investors.
Expo 2020 has not just increased the demand for Dubai properties but it impacted on the property prices as well. A majority of real estate experts foresee an incredible 2022 in terms of real estate transactions and values. The residential property prices are also expected to grow in 2022 and in the years to come – thanks to higher demand for Dubai properties, supported by Expo 2020. According to an estimate, Dubai property prices are expected to escalate between 4% and 6% in the years to come. A significant increase in the demand for luxury and high-end properties will also be observed in 2022.
New visa initiatives
The UAE in general, and Dubai in particular, is a melting pot of different cultures and people belonging to different nationalities. According to an estimate, expatriates represent almost 85% of the total population of the country. It shows the population dynamics and foreigners’ interest in Dubai real estate. The government has adopted flexible visa initiatives in order to let foreigners stay for the long term in the UAE, which has created a positive impact on the demand for properties in Dubai.
A few residence visa options are:
- A ten-year Golden Visa – a long-term visa for expatriates allotted after real estate investment
- A five-year visa for expatriates
- Residence visa for remote workers, who want to live in the UAE but work remotely for an organization elsewhere.
- “Retire in Dubai” visa for elderly people, who want to stay in the UAE even after retirement.
- Student visa for foreign students, after which they can sponsor their families
Nationality for selected specialists
Recently, the UAE government has made revolutionary changes to the citizenship law allowing specialists to acquire Emirati nationality, under certain conditions. This decision will certainly play a significant role in the growth of the UAE’s economy. Moreover, it can also lead to an increase in the demand for Dubai properties.
Change in business investment laws
You must know that the major attraction of the UAE is its tax-free environment. However, just before the iconic Expo 2020 event, the government has taken some revolutionary measures. For instance, to facilitate direct foreign investment the UAE government has removed the condition for the businesses and companies to have one or more Emirati shareholders – holding at least 51% of the shares of the said company. The change in the policy will have long-lasting impact on the UAE’s economic sector.
Creation of new jobs
When more foreigners will consider Dubai to start their venture, it will create more employment opportunities, which will give a boost to the real estate markets in Dubai, Sharjah, and Abu Dhabi. Besides that, the time Dubai took to establish the Expo 2020 site and the entire event had led to creating ample direct and indirect jobs in the market. Though COVID-19 had halted the economic growth cycle but the increased workforce and jobs have led to a surge in the demand for Dubai properties.
Expo 2020 – The legacy to continue even after the event…
Dubai real estate market has been experiencing exponential growth from Expo 2020’s event. And now as the event is nearing an end, the site will not go wasted but the world’s largest expo’s site will be converted into District 2020, a sustainable and mixed-use community. Most of the residential and commercial spaces will be retained and almost 80 percent of the total infrastructure will be re-used.
A large number of real estate experts have appreciated this idea because it will generate interest from buyers and investors – investing in the future vision of Expo 2020. Moreover, the residential communities located near to Expo 2020 site will also be positively impacted by the District 2020, which will eventually add to the overall increase in the demand for properties in the UAE.
Not just the residential sector will be benefited from this transition but District 2020 is expected to become a new commercial hub in the emirate as Dubai World Trade Centre activities are likely to be shifted to the Expo 2020 Convention and Exhibition Centre.
Expo 2020 opened up new avenues for businesses but it has also paved the way for foreign buyers to explore Dubai. A large number of the total visitors, visiting Expo 2020 is expected to revisit Dubai at some other time, and several of them have already been planning to buy properties in Dubai and considering to shift to Dubai on a permanent basis.
Isn’t it like Expo 2020 has brought several changes to Dubai, but it has stepped up the game for Dubai economy in general and the real estate sector in particular. And now with its transition to District 2020, it will boost the real estate sector on an immediate basis and in the years to come, as well.