Dubai Expo 2020 – The Effects on Property Prices
In 2013 it was announced that Dubai will play host to the renowned Expo world exhibition in October 2020. As well as exuberant celebrations and high anticipation for the UAE city, the reverberations of the result were also felt throughout the property market.
As the event draws closer, estate agents and property speculators are confident the Expo 2020 event will have positive consequences for property prices in Dubai.
What is Expo 2020?
From October 2020 to April 2021, a series of technological events and presentations will be on show around Dubai, attracting the world’s leading individuals and companies exploring networking opportunities.
Because the universal exhibition hasn’t been held in the UK for over 100 years, it may not be within the public conscience domestically. It is a very important event however, helping to boost the economy of the host city to a great extent.
The positive effects of Expo 2020 will be very rewarding for Dubai and the UAE as a whole. An injection of £30 billion will be pumped into the economy, supported by an influx of around 20 million visitors and helping create nearly 300,000 new jobs in the process.
Dubai Property Market
Indications show that the Emirate’s property sector is already starting to perform well after periods of uncertainty from 2008, even without the benefits of Expo 2020 taken into consideration. Property prices have stabilised and look set to increase from 2017 onwards, aided by Dubai’s thriving tourism sector and ongoing government investment schemes.
Rental yields in Dubai can reach up to figures of around 8-10%, especially in the apartment sector located around the Dubai Marina location. With property prices remaining stable but expected to rise closer to 2020, it’s worth considering an investment during the current climate.
Effect of Expo 2020
The UAE government is sparing no expense preparing for Expo 2020. Huge investments are being made to improve the infrastructure of the city to cater for large visitor numbers and provide entertainment. Work has also begun on a structure known as The Tower, designed to be bigger than the Burj Khalifa.
Real estate will benefit from these mega investment schemes in particular. The general consensus is that this increased investment from wealthy foreign buyers will strengthen confidence and increase Dubai property values, even after the exhibition has ended in 2021.
Likewise, due to the significant influx of workers and tourists to Dubai in the build-up to Expo 2020, the rental market in particular looks an attractive prospect for buy-to-let investors. Of course, construction and hospitality staff require somewhere to stay, as do wealthy businessmen who will visit during the exhibition.
Investors looking for long-term growth potential should consider an immediate purchase of a Dubai property and take advantage of the healthy rental market. Being prepared to hold this real estate through Expo 2020 and beyond will reap the biggest returns on investment as prices are expected to rise in the long term. Not to mention the rental income gained during this time.
If you’re ready to invest in Dubai, get in touch.
If you’re not quite ready to invest yet, you might be interested in some more reasons why the time is right to invest in Dubai.