Hamad AlWazzan | Dubai´s temporary real estate boom!

 

Since the announcement of Expo 2020, there has been an increase of residential and commercial development at the site and across the UAE. New shopping centers, hotels and over 400 restaurants as well as luxury housing and cycling paths have been completed to cater to the needs of this worldwide event. 

 

According to real estate expert, Hamad AlWazzan the event is estimated to bring in Dhs122bn to the overall UAE economy. “While that will largely be made up of the tourism, hospitality and F&B industries, there has been a noticeable uptick in demand for rented apartments as a projected increase of visitors are expected to gather in Dubai. It is the perfect opportunity for landowners and investors who are on the lookout for a strong market for their properties”, he added

“Despite the recent challenges posed by the Covid-19 pandemic, 74 per cent of respondents are anticipating a recovery for the MENA region’s real estate industry within one to two years since 2020. A key proponent of this growth is regional mega-events such as Expo 2020”, explains Hamad AlWazzan. He adds that developers need to understand the changing demands of potential investors and organizations especially with Expo 2020 ready to open its doors to potentially hundreds of new businesses. “Offering value for money for either larger units or high-end facilities will be essential to attract buyers. Commercial real estate developers will need to offer flexible areas for investors to create the perfect space for their business as opposed to pre-structured floor space”, says Hamad AlWazzan.

“We are already seeing the implementation of these changes firsthand. Developers are focusing on adding high-end facilities such as gyms to established living spaces. Environmentally friendly buildings are also in the making”, observes the real estate expert. According to Hamad AlWazzan, developers have been eager to start constructing new apartments and villas. The interest rates have been lower than usual, just like the property prices and mortgage rates, making them extremely attractive to those looking to buy in the market.

“With a surge of new visitors to the emirate for Expo 2020, I expect that there will be a surge of prospective investors in Dubai’s real estate sector. The likelihood of investing in Dubai has become increasingly more attractive due to several proactive government incentives such as the introduction of new visas; special investor and retirement visas, golden long-term visas, and the reduction of the loan-to-value (LTV) for first time homebuyers to 20 per cent initiated by the UAE Central Bank”, adds Hamad AlWazzanm who believes that these initiatives will provide a significant boost to the industry and, in turn, the economy.