EXPO 2020 Dubai expected to drive real estate demand

According to Mo’asher, the real estate sector of Dubai recorded an astonishing 6,388 transactions in June 2021, which is the highest value of sales since December 2013. This surge brings the yearly total to 27,373 property deals worth AED 61.97B (USD 16,87B). Previously, the year of 2020 witnessed 35,041 transactions in total which were worth AED 71.87B (USD 19,5B).

It is expected that the upcoming EXPO 2020 will only strengthen the interest of investors in real estate, as well as home buyers. Many interested parties from around the world have already begun to show increased interest in real estate services with inquiries regarding selling and buying residential premises, opening new offices, as well as obtaining commercial land for building hotels.

The World EXPO 2020 will open in October 2021 and will last 172 days. This is a truly global event, which will be unparalleled in the history of the exhibition, as each of the 191 participating countries will have its own pavilion. Despite the ongoing COVID-19 pandemic, a total footfall of 25,000,000 visitors is expected at the highly-anticipated event. Although the long-term benefits have yet to be determined, countries that have hosted previous world fairs have noted significant positive effects on their economies. Changes are already evident throughout Dubai, as infrastructure projects are developing rapidly and demand for business experiences is increasing.

In addition, the second half of 2021 in the Dubai real estate market has already managed to show a significant increase in sales of luxury real estate. One of these is the largest real estate transaction of the year so far, which was announced on July 25, 2021. A luxury mansion on the sought-after island of Jumeirah Bay was sold for AED 121M (USD 32.9M). Although the details of the custom-built villa and the buyer’s identity are kept secret, it has become known that the buyer is European and a member of Forbes’ list of the world’s 500 richest people.

As for the expectations for the upcoming 6-12 months, there will be a predicted price decline, making residential property in Dubai popular among investors and end-users. Villa prices are expected to remain stable as homebuyers continue to look for more spacious units. Meanwhile, the secondary property deals are set to increase even more.

According to the leading real estate portal, Property Finder, the top areas of interest in terms of transactions for townhouses/villas in Q2 2021 were MBR City, Dubai Hills Estate, Dubai Land, Green Community and Town Square Dubai. The following areas have been highly popular for apartment sales: Jumeirah Lake Towers, Dubai Marina, Meydan, JVC Circle and Downtown Dubai.