Expo 2020 will have a very positive impact on the property market in Dubai in the years ahead. The sheer volume of individuals estimated to be attractive to Expo will stimulate enterprises and professionals who can benefit from the establishment of the city’s roots. Industry captains can regard Dubai as the ideal business destination for building headquarters and entrepreneurs seeking new companies, particularly when the Expo site will become a corporate hub after the show.
Short-term Influence in Market Recovery
It is difficult to tell if Expo will impact rental prices directly in neighbouring communities. There are so many factors affecting housing values that Expo will have no major short-term influence. That said, we saw more interest from multiple tenants when a well-priced, well-kept property is available. This may indicate that prices may be rising in the future, but I can’t see much change in 2021.
The metro line that stops in areas like Al Furjan and Jumeirah Golf Estates has attracted additional locals.
More than double the 2.5% growth projected three months ago by Reuters’ survey of 11 real estate analysts, prices of residential properties in Dubai are expected to rise by 5% in 2022. As for property values, they’re expected to rise by 3% by 2023. Residential and commercial space leases are expected to rise by 7-9 percent in Q1 2022, while luxury property prices are expected to rise by 9-14 percent. The UAE’s high standard of living and recent changes to visa requirements will entice more people to move here. As of September 2021, the United Arab Emirates has introduced Green Visas and Freelance Visas for self-employed individuals who do not require sponsorship. A three-year investor visa now requires only AED 750K instead of the previous AED 1M (USD 272K) minimum required by the DLD (USD 205K).
Dubai Residential Market Review
About 100,000 units are expected to be completed by the end of 2021, according to the Dubai Residential Market Review – Autumn 2021. At least 78,000 dwellings are expected to be built in 2020, which would make it the biggest number of new homes since 120,000 were commissioned in 2009. Although building timelines are likely to be postponed by 30-40 percent, this does not indicate that the 2022 total will be pushed into 2023 or later.
In addition, by the end of 2025, the real estate market in Dubai is expected to see the transfer of 125,000 units. Dubai’s residential stock climbed to 629,000 properties in Q3 2021, up 11,000 units in three months, according to JLL. This year, an estimated 20,175 apartments and 2,900 villas are expected to be built in Dubai. Experts at JLL also point out that house prices have risen by a fifth since the financial crisis of 2010.
Plans for Improvements in Market
Dubai is already a great environment for living, but it is really exciting to have leadership that continually plans and improves. The city has come so long and has demonstrated such rapid, forward-thinking leadership throughout the pandemic to safeguard residents and keep the economy on the correct course. As citizens of the UAE, we are incredibly lucky, and I think things will improve only as time goes by. The 2040 plan attracts foreign investors, entrepreneurs, and expatriates currently resident in Dubai.
The city is increasingly becoming a home for all and an everlasting home. Although 2040 seems a long way off, we can see that Dubai continues to grow and is looking for methods to improve its citizens’ quality of life. Recently, LTV growth and reduced borrowing rates were launched as part of the stimulus strategy. Dual citizenship, golden visas, remote working visas, 5-year visas, and retirement visas were also introduced, all unavailable before 2018. The leaders of the UAE make Dubai an attractive location for expatriates.
Business Properties in Dubai
As a result of residents’ trust, the property market in Dubai will certainly thrive. Loans will see an increase from newcomers and distant visas, and sales continue to expand as families. The people envisage themselves in the city for the long term. The market will also gain enormously, as foreign business owners set up shops to rent. It is to purchase business properties in Dubai.
Although not on the metro, the communities closest to the Expo site are swiftly rented out by communities. Such as Green Community, Mira, Town Square, Mudon, and Damac Hills. Locators show considerable interest in the properties. Green Community is a very popular neighbourhood. We have noticed for some time now that a property is on rent in record time when it becomes available. Expo 2020 affects the attractiveness of certain regions, but I would not conclude that this is the main factor. These neighbourhoods provide residences that are new and ideal for families at relatively attractive pricing.
Real Estate Business
Being driven into a socially distant atmosphere. A pandemic has hastened the adoption of technology by the real estate business. Which will have a major long-term impact on the property market in Dubai, and we see this already. After simply a 360-degree tour or video tour, several properties were sold. This happens not only to customers who live in the UAE but also to people living in the UAE. For example, Allsopp & Allsopp recently sold a villa in the Lakes Emirates to a family who rented a villa in the same location. They had been on the market for some time. Interest when a property is available nearby. However, the tenants were not physically comfortable, so we arranged a virtual tour of the home and presented the customer. He chose to buy the property they were expecting, and it was at a terrific price.
We certainly see less from purchasers and tenants. With virtual tours of many properties on property portals, buyers and tenants use them to save time. Virtual tours are an excellent method to save time and reduce property searches. They happen now, and I expect that this will continue as we get beyond the pandemic. Those looking for a new home simplify the process by eliminating areas. The properties are based on their carefulness before starting the viewing process. Therefore, they have very few physical views, and it then becomes a shortlist. Rather than blindly displaying multiple properties in multiple areas.