Dubai’s real estate market will see a sharp rise in its value as long-term tenants are switching from renting to buying homes to secure themselves in one of the most sought-after destinations in the world, experts say.
Industry specialists and top executives said Expo 2020 played a vital role in attracting foreign buyers to invest in the emirate’s growing real estate sector. In addition, the visa reforms, consistent economic policies and stimulus packages have also benefited the sector.
Expo impact begins
The Dubai real estate sector witnessed an exceptional growth in sales transactions in terms of volume and value last month. It recorded Dh28.5 billion sales through 9,368 transactions in November, reflecting a significant increase compared to Dh16.2 billion sales through 5,762 transactions ahead of Expo 2020 in September.
"The emirate recorded best October over the past eight years as investors poured Dh13.12 billion in the property sector through 5,352 deals," according to the Dubai Land Department.
The global fair, which entered into the third month, surpassed all expectations as it welcomed approximately five million visitors during the first 60 days of its commencement. With an interesting line-up of events scheduled during the Expo, the number of visitors is expected to accelerate in December as residents and tourists will rush to the event on the eve of Christmas and New Year.
“Certainly, Expo is attracting new investors, buyers and people who have never bought any property in Dubai. I can see all types of developers are experiencing new markets, nationalities, people and new buyers,” Farooq said.
In reply to a question, he said it is difficult to say when would be the peak impact of Expo on the property sector. However, Expo has already given a head-start to the recovery of Dubai.
“There are other factors associated with the long-term recovery of Dubai. I am a strong believer of the golden visa, fiver-year multiple entry visa, and UAE citizenship by invitation which is a big hope that UAE will accept foreigners as longer-term residents or eventually its citizen.
“All these factors have created a very bullish sentiment in the market. The head-start recovery started with Expo expectations. In this scenario, it is difficult to predict when the peak will be. But the market should perform normally beyond Expo because of the way the UAE performed during the Covid-19 crisis, visa reforms, and Expo, all these are positive contributors. A similar impact should continue after the Expo,” he said.
Expo a growth catalyst
Ata Shobeiry, chief executive at Zoom Property, said Expo 2020 Dubai is expected to produce better results for not only the real estate industry but also for other sectors.
“Expo visitors will get a chance to explore Dubai and get a hands-on experience of the upscale lifestyle it offers,” he said.
Shobeiry further said after a pandemic-ridden year amidst flight restrictions, people now have a chance to travel to Dubai and enjoy the global event that has pavilions set up by more than 190 countries, representing their culture, innovation and modern solutions to the global problems.
Sharp turnaround on cards
Imtiaz Rafi Butt, chairman of Rafi Group, said a sharp upturn will be seen in Dubai’s real estate very soon.
“We have an optimistic forecast on the considerable rise in property sector after lifting of Covid-19 restrictions. Long-term clients are switching from renting to buying homes to secure themselves, the recovery from economic loss is evident in the few coming years,” Butt told Khaleej Times.
He said Dubai property is on the rise after a halt of a few years, as ease in Covid-19 restrictions is applied, the rise in new comers is predicted.
“Hotels in the hub are allowed to operate at full capacity, raising hopes for the region heavily dependent on tourism. This will in turn aid both renting and buying of property to increase substantially,” he said.
The industry veteran is hoping to see the world come together in Expo 2020 Dubai and bring a new era of global relations. After two years of fighting with Covid-19, he said the world has seen a lot of advancements from technology to methodology and it is time to share the innovations to strengthen the globe.
“We are expecting Expo 2020 Dubai to become a channel of recovery for the future of the real estate market in UAE. For the past two years, the world was fighting Covid-19, Expo 2020 Dubai has opened its arms to the idea that we have to learn to live with it,” Butt said.
Expo 2020 Dubai runs until March, inviting the world to join a global celebration that will help to shape a better, brighter future for everyone.
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