By Leila Al-Ghanem
This event, once again, reinstated Dubai’s status, as the city of dreams, in the eyes of the world and forever altered the perception surrounding the region’s market dynamics. This event, apart from boosting tourism, facilitated an influx of foreign capital into the region. Moreover, it broadened its appeal by being staged in over 190 nations, who were eager to put their best feat and heritage forward with a fresh approach. The amalgamation of the worlds changed everything in Dubai homes. With that said, everything was set for the sudden onslaught of millions of visitors and the changing identity of the city opened new doors for its economy.
The Meaning of Expo 2020
Expo 2020 was not just an event, it was a step towards a future that is more connected and digital integrated. With its focus on mobility, opportunity and sustainability Expo encouraged nations to exhibit their ideas. Dubai aimed to strengthen its global economic position by hosting such a great event and actively trying to organize such a grand event. The exhibition brought together many cultures and ideas that moved beyond the dimensions of the exhibition. With the diversity of industries that were represented, real estate had the strongest influence.
RES Real Estate Landscape Before the Expo
Even prior to Dubai becoming the focal Hub with regards to international stakeholders during Expo 2020, the real estate sector was coming out of recuperation. Prices of the properties were beginning to recover from the previous state of collapse, and appetite for development started increasing consistently amongst both local and foreign investors. The market indicators Supply greater than demand which resulted in a market with rent rates were on the rise. Suburbs like Downtown Dubai, Marina and Palm Jumeira have continued commands enormous attention due to its distinctive lifestyle. Many developers shifted their emphasis to building premium product yet there was a greater appetite for affordable housing too. The lifestyle preferences and demography favored real estate which means that the prep phase along those lines did a good job for the boom preceding the expo.
The Rise in Interest for Properties
Demand for the Dubai market went up tremendously upon the start of Expo 2020 for all the types of properties all across the board. Residential properties did see a considerable amount of interest with its modern luxurious amenities serving well to both the long-term residents and short term visitors. The commercial sector also stepped up in demand as they hosted a number of brands keen on engaging with the audience of the Expo. Growth was also observed in the hospitality sector with significant new hotel construction and short-stay Internet rental properties. This surge is accounted for by a rise in airlines, tourism and international press. All of these aspects worked in promoting the region for real estate business.
Boosting International Investment
The foreign investment in the real estate market of Dubai went off the charts as the region put its best foot forward on a global scale. The injection of foreign capital served several roles, ranging from supporting local enterprises and aiding in developing projects. Investment statistics indicate a rise of over 25% in international investments during the Expo period, which is a key indicator of the faith that foreign investors had in the region’s economy and opportunities for growth. The highly affected sectors are:
- Luxury housing units
- Commercial office buildings in business centers
- Hotels and other business facilities catering to tourists and travelers.
Infrastructure Projects
The growth the region has witnessed with the infrastructural projects exhibited during the Expo 2020 is one of the key reasons the real estate market of Dubai is booming. The improvements made in the transportation system made it easy for the residents and the tourists to navigate the region. Some of the major projects include new roads, expansion of Dubai Metro, and development of new facilities for public transport. Moreover, new hotels and other facilities were built to accommodate the vast number of people that were expected for the Expo. Such infrastructure not only accommodates future events but also helps with the long term growth of the real estate market and the overall urban development. The table below summarizes some key infrastructure projects initiated in order to promote the Dubai Expo 2020.
| Project | Explanation | Status |
|---|---|---|
| Dubai Metro Expansion | Project will make it possible for the metro lines to connect to the site for the expo and extend past it | Awaiting Completion |
| Ongoing: Widening of major roads | New express routes to alleviate congestion. | Completed: Construction of hotels and serviced apartments aimed at the visitors and tourists. |
The three-month long expo took place from October 2021 till March 2022 and witnessed people from more than 100 countries visiting Dubai. It is quite apparent that the market was severely impacted during and after the Covid-19 lockdown and there were great risks put to Dubai’s reputation as a global business hub. Thankfully however, after the world exhorted 2020 to end and kick started 2021 on a fervent note, it ushered in a booming recovery for Dubai, reigniting great hopes for the real estate market. It is safe to say that the Expo changed the city for the better during and after the global pandemic. The long standing reputation the city forged during the expo affected the event positively. The further reputation stability the city forged greatly facilitated in constructing the economy. Investors grew more and more interested in sinking investments to meet the growing demands. The annual percentage growth projected is 5.88%. To quantify this further, around 24207 units would be delivered and with the pace that Dubai is growing at, a staggering $51 billion is expected to be reached by 2025. These predictions and figures are further legitimized by the fact that many districts registered over 2500+ real estate transactions with sales averaging 126,440,000 throughout 2021 alone. These changing dynamics further allow Dubai to set its sights on even greater goals enabling the economy further. All this will bolster the real estate market.
Conclusion
With the increasing demand for properties and the rapid construction of the necessary infrastructure, Expo has undoubtedly reshaped the real estate industry in Dubai and its impact will be felt even after the conclusion of the event. There will be new investment opportunities once the geo-political situation stabilizes, due to the investments secured from both short and long-term periods, and the boosted interest in sustainable development will also elevate Dubai on the international mindset. Therefore, these involved – residents and investors – must pay special attention to this macro trend to fully capitalize it, as these represent a significant opportunity to grab.
FAQ
What is Expo 2020?
Expo 2020 is a World Expo currently being held in Dubai. It is a mega event where various countries showcase various cultures, industries and innovations and it will commence from 1st October 2021 and conclude on 31st March 2022.
How has Expo 2020 impacted Dubai’s real estate prices?
Due to the increase in the number of tourists and the international market’s interest in Dubai, the real estate prices have seen an upward trend across all sectors.
What types of properties saw the most demand during the Expo 2020?
There was and is an overwhelming demand for Residential, Commercial Office and Short Term Rental properties.
Are the investments made in real estate enduring in Dubai post the expo, and do predictions suggest it will stabilize?
Although there may be a cooling off period in the immediate future, the developments stemming from the global interest crown in Dubai will lead to long term growth.
What are the projects undertaken regarding the infrastructure because of the expo?
Major projects encompassed the modification of existing public transport systems, the construction of additional hotels and marketing materials directed towards tourists attending the Expo, and more.
How can an investor use strategic investments with the changes to a Dubai post the expo?
The investors will still be able to benefit from changes in rental demand, new projects being established and the already existing better infrastructure in Dubai.