Rental rates for residential real estate will grow by 10-15% in several districts of the city.
Expo 2020 will begin on 1 October 2021 and will run for six months. Millions of people from all over the world will visit the UAE and especially Dubai, the venue for the event.
Based on this, a preliminary analysis of the market was carried out and a list of both generally popular and coastal areas of the city, where the demand for real estate will experience strong growth, was selected. This demand will lead to an increase in rates by 10-15%, depending on the area.
These figures are pointed out by Firas Al Msaddi, CEO of Fam Property.
The list of locations that will experience the most growth is as follows:
- Downtown Dubai
- City Walk
- Bluewaters Island
- Dubai South
- Dubai Investment Park
- Jumeirah Golf Estate
The first three are venues for several large-scale entertainment events timed to coincide with the Expo.
The second three are large and close to the venue areas of the city, where most of the visitors to the Emirate settle.
The Expo itself will be held in the Dubai South, at the Dubai Exhibition Center.
Al-Msaddi himself adds Burj Khalifa and Dubai Marina to the list.
At the same time, the period of special visitors’ activity should be extended by a couple of months after the end of Expo, as a residual market movement.
In addition to attracting millions of people as visitors to the event, the exhibition will create thousands of jobs directly and indirectly associated with the event and the industries represented at it.
The following industries will experience the largest growth in the number of employees:
- Tourism and travel
- Holding events and exhibitions
- Technology and IT
This growth will lead to demand creation for longer-term rental properties, an increase in labor migration.
The above concerns mainly apartment sector, but growth is forecasted for the villa segment as well. The latter is already a strong pillar of the market, which supports the market amid falling average apartment rentals.
For 12 months by June 2021, the average rental rate in Dubai had fallen by 7.6%, mainly due to a decrease in apartment rates. The villas showed an increase of 7.2%.
Thus, by mid-2022, we can expect an increase in villa segment growth and a return to the growing trend of apartments in both small and large configurations.
About Expo 2020 in Dubai:
The World Expo was scheduled to take place in 2020 in the Emirate of Dubai, but has been postponed a year in advance due to the COVID-19 pandemic.
The event will showcase the best technological, cultural and business achievements of the UAE across all its industries and will bring together major local and international business, private investors and government agencies with their initiatives.
The exhibition will demonstrate the long-term development strategy of the Emirates and will be largely devoted to the real estate market - its latest environmental and technological solutions.