Expo 2020 Dubai generates real estate demand as tourists flock to visit the world’s largest trade fair

Dubai’s rental market is expected to maintain an upward price trend in the near term, as Expo 2020 generated real estate demand, especially in areas near the mega event, according to a report.

“Dubai’s real estate sector has seen an upward trend in the rental market during the third quarter of this year with an estimated 14% increase in affordable housing and up to 30% in luxury housing in some areas of the city. ’emirate. The fourth quarter is expected to follow suit with the start of Expo 2020 Dubai, ”according to Zoom Property Insights.

The first 10 days of the flagship event saw 411,768 visitors, and it is expected to welcome up to 25 million visitors from different countries throughout its six months. From these figures, we can see that the areas located near the event site will remain occupied during this Universal Exhibition. Both rental prices and demand are expected to grow in these areas.

Zoom Property CEO Ata Shobeiry said promising statistics from the second and third quarters of 2021 paved the way for a strong fourth quarter.

“Due to the ongoing exposure and a strong comeback of the Dubai real estate market after the pandemic, rental prices will see a significant increase in the last quarter,” Shobeiry said.

Dubai property market quarterly reports from various property portals show that the July-September period saw increased activity at Jumeirah Village Circle (JVC), Al Nahda, Bur Dubai, Dubai Silicon Oasis and Deira for affordable apartments, while renters looking for luxury apartments to rent preferred Dubai Marina, Downtown Dubai, Jumeirah Beach Residence (JBR), Palm Jumeirah and City Walk.

Mirdif, Damac Hills 2, JVC, Reem and Dubai South top the rankings for affordable rental villas. For luxury villas, Jumeirah, Al Barsha, Umm Suqeim, Arabian Ranches and Dubai Hills Estate remained the top choice for tenants. According to Zoom Property Insights, these areas will also remain in the foreground of the October through December quarter.

“While we expect residential rents in Dubai to continue to improve in the fourth quarter and into 2022, it is important to note that the recovery in rents is expected to be segmented. Villa neighborhoods and most prime apartment locations are expected to experience a faster pace of recovery, while most affordable and peripheral apartment neighborhoods with large existing stock are expected to experience slower stabilization rates ” , said Edward Macura, partner at real estate consulting firm Core. Khaleej weather on Sunday.

Additionally, he said most of the rent increases were in the new rental market as landlords were able to list and rent at higher rents. increases governed by the Rera rent index.

Shailesh Dash, a Dubai-based financier and entrepreneur, said Dubai’s economy and its real estate sector have both been on the rise since the start of this year.

“Building up to Expo has been very good for Dubai’s economy with the way the government has handled the pandemic and passed very positive regulations to help business growth in Dubai,” Dash said. Khaleej weather.

Currently, he said that the demand for certain categories of real estate appears to be greater than the supply, which has also resulted in higher prices for real estate and rentals.

“We believe that the work being done to create a more investor-friendly environment will help the economy even beyond the Expo,” Dash said.

Atik Munshi, Managing Partner, FinExpertiza UAE, said Dubai and other UAE emirates have seen a steady rise in property prices, especially high-end real estate over the past year and a half.

“This trend should also extend to mid-range and affordable properties. With the increase in real estate prices, the rentals of real estate would also experience an increase, ”he said.

He said the Dubai government’s Dubai REST app is an easy way to tell if rental in any area of ​​Dubai has increased.

“Expo 2020 is already attracting a large number of people – more visitors from the subcontinent and Europe are expected in the next two quarters. The economy of the United Arab Emirates showing positive growth; UAE businesses are likely to hire more people and the result would therefore be the need for more housing; which, in turn, would drive up rents. I will not be surprised if the rental market also experiences a further increase next year, ”said Munshi. Khaleej weather on Sunday.

Shifting demand to big houses, returning foreign investors to Dubai, and pro-expatriate policies are the main accredited reasons for increasing real estate demand and prices, apart from the ongoing Expo 2020, according to Zoom Property Insights.

The recently announced Golden Visa program and 100% business ownership policies have also resulted in an increase in entrepreneurial and investment activity in Dubai. The change due to these policies is reflected in the rental property market, as demand and prices have seen substantial growth this year so far, he added.

In addition to the rental market, property sales are also expected to increase in the fourth quarter, with the third quarter showing promising results. With 15,926 transactions worth 42.35 billion dirhams, this is the best third quarter in Dubai property market history in terms of transaction value.

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Muzaffar Rizvi

Khaleej Times Corporate Editor / Editor-in-Chief is a well-connected journalist and economic and financial commentator. He has worked in mainstream journalism since 1997, covering the economy and key sectors of the UAE. He holds a graduate degree in economics and has won numerous awards for authentic and insightful reporting on global and regional business and economic trends.

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