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Are you curious about the upcoming Expo 2020 in Dubai? With 2019 coming to a successful close, the world is looking to Dubai’s Expo 2020 with bated breath. Set to start from October 2020 until April 2021, the announcement of the Expo in 2013 has already set a precedent of successful endeavours. According to the 2019 report by Ernst Young, the Expo already has a good impact on the economy and will continue this trend until 2031 (the legacy period: 2020-2031).
One of the most interesting effects it has had is on the real estate market. The same report states that during the pre-expo phase which is Nov 2013 – Oct 2020, construction activity has seen positive growth. While 2019 has witnessed a spike in property construction completions in both the residential and commercial sectors, 2019 has also witnessed the market going towards a stable state. The pricing is moving towards the 2009-2010 pricing range which encourages investors to get in on the market.
Expo 2020 will also witness a massive influx of about 25 million tourists from 190 countries across the world. This is favourable not just for the economy, wherein it’ll generate a GVA of AED 122.6 billion, but also for the real estate market as holiday homes are becoming increasingly popular. In the pre-expo phase alone, construction has contributed up to AED 25.7 billion.
With the increment in the tourism influx, Dubai will be the centre of attraction for everyone all over the world. Expo 2020 will put Dubai under a spotlight in terms of investment opportunity for newer audiences who have never experienced Dubai, its luxuries, hospitality, and luxury retail options. This will drive investment from a different sector of the international audience spectrum.
In terms of jobs, the expo has had a tremendously positive influence. With just the pre-expo phase generating a total of 262,400 FTE(Full Time Equivalent) job-years, the total jobs that will be created until the end of the legacy period is slated to be 905,200 FTE job years. This is great news for the economy. The positive impact of this on real estate is that more people will move to the UAE, thus driving up demand for housing, for lease or sales.
The UAE Government has taken up the initiative to control the demand-supply ratio in the real estate market. This will drive the market to a stable state and make it even more favourable and balanced for everyone. They have set up a committee to regulate the market. In addition to this, investors also have a chance to obtain long term visas or ‘golden card’ residency permits based on their investments. The government has relaxed the regulations on foreign ownership of businesses and the central bank has removed the 20% cap on real estate lending as a percentage of total deposits. All of these factors have created extensively fruitful grounds for investors.
In addition to the above, there are multiple incentives from the developers, like post-handover payment plans, land registration fee waivers, service charge fee waivers. The banks also offer up to 75% mortgage coverage.
The Expo is, therefore, to impact the UAE in a major and positive manner. Investing in the UAE now is highly recommended so that you can reap the rewards in the near future.
For more information, get in touch with us at Provident