All Eyes On Dubai

In the lead-up to Expo 2020, Dubai’s property market is heating up—but it’s not all good news for luxury real estate

- K Fernandez

For those keen to establish a second home abroad, now might be the time to take a closer look at Dubai, home to Bollywood stars and a haven for politicians from everywhere. Although the Emirate’s property market has been declining for several years, the upcoming Expo 2020 is expected to yield a tidy profit for investors.

The giant exhibition is set to open in two years’ time, and the UAE government expects that it will attract 25 million visitors and new residents—as compared to 15.8 million in 2017. The consequent economic uptick is likely to benefit the property market, as Sapna Jagtiani, S&P’s credit analyst for corporate and real-estate ratings, told Reuters.

Agents on the ground agree. “Government spending in the run-up to the Expo 2020 has already increased [by almost 20 per cent from 2017 to 2018] and construction in infrastructure, hospitality and retail sectors is in full swing,” said John Stevens, Managing Director at Asteco, the Middle East’s largest full service property management company, in an email to BlackBook.

The total value of major Expo-related projects reached AED11 billion ($42.5 billion) at the end of March this year, according to data from the digital intelligence platform BNC Network. Over the same period, the total value of the top 10 active projects linked to the event exceeded Dh120 billion ($32.7 billion). The volume of construction is expected to have a knock-on positive impact on the overall economy and improve consumption.