Everyone is curious about the upcoming Expo 2020 in Dubai. The world is looking to upcoming Dubai’s expo 2020 with bated breathe. It is almost ready to start from October 2020 until April 2021; as the announcement of the Expo in 2013 already set an example of successful endeavours. According to the report of 2019 by Ernst Young, the Expo already has a good result on the economy and will continue this trend until 2031 (the legacy period is: 2020-2031). One of the most interesting and excellent effects it has had is on the real estate market. The same report also shows that during the pre-expo phase which is Nov 2013 – Oct 2020, construction activity has seen positive and rapid growth. The market is going towards a stable state in 2019 and also a spike is being noticed in property construction completions in both i.e. commercial and residential.
As the pricing range encourages investors and end-users to get it on the market as it’s moving towards the 2009-2010. The event will also show a massive stream of about 25 million tourists from 180 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. The construction has contributed up to AED 25.7 billion in the pre-expo phase. With the increment in the tourism stream, Dubai will be the main centre of attraction for everyone all over the world. In terms of investment opportunities, Dubai will be a spotlight after Expo 2020. Also for newer audiences who have never experienced Dubai and its luxuries, hospitality, and luxury retail options. This is all to drive investment from all the different sectors of the audience spectrum. The expo has had a tremendously positive influence in terms of Jobs. With just the pre-expo phase generating a total of 262,400 FTE (Full Time Equivalent) job-years, the total jobs that will be increased until the end of the legacy period are about to be 905,200 FTE jobs. This is excellent news for the economy.
The demand for housing, for lease or sales in going to increase tremendously more people, will move to the UAE so this is the positive impact on the real estate market of the UAE. To control the demand-supply ratio the UAE government has taken up the initiative for the real estate market of the UAE. This is to make it even more balanced and favourable for everyone so to drive the market a stable state. The UAE government has set up a committee to regulate the entire market of the UAE. Also to obtain long term visas or golden card residency permits based on the investments of the investors they have a chance to get long term visa. The UAE government has relaxed the regulations on FDA of businesses and the central bank has removed the 20% cap on real estate sector lending as a percentage of total deposits. All of these factors have created extensively positive grounds for investors to invest. Also, there are many incentives from developers like payment plans, land registration fee waivers, service charge waivers, and many more. Now the banks also offer up to 75% mortgage coverage. Therefore the impact of Expo is positive and investing in the UAE is now highly recommended in order to reap the rewards as the best ROI.