Expo 2020 to kickstart Dubai property market recovery, says developer
UAE-based upscale developer Seven Tides has indicated Dubai’s property market will start to recover in 2020, driven by Expo 2020, new government initiatives, favourable payment plans and growing flexibility from financial institutions.
The company said the emergence of this recovery was first evident in the final quarter of 2019, with close to 5,000 real estate transactions recorded in October, the highest number of property sales since 2008.
Abdulla Bin Sulayem, CEO, Seven Tides International, said: “With Expo 2020 now only nine months away, Dubai alone is gearing up to welcome more than 14 million overseas visitors during the event.
"The stimulus of the mega-event, which will yield an investment windfall of AED122 billion as well as creating around one million jobs over the same period is expected to positively impact the overall property market in the emirate.
“However, the lasting legacy of Expo 2020 when measured against Dubai’s property market, will only be truly realised when international visitors return to Dubai, to invest, live and work here over the medium to long-term.”
Property prices have been under downward pressure over the last few years, with oversupply hampering recovery. Overall residential stock is expected to reach 637,000 units by the end of 2020, correlating to more than a 10 percent increase in recent years.
Last year, a real estate planning committee was established in Dubai to address the balance between supply and demand. The committee has been tasked with regulating the sector and developing a clear and deliberate strategy to ensure real estate projects are not duplicated and that they add real value to Dubai’s economy, as well as ensuring that small private developers are not competing directly with larger semi-government real estate companies.
“Despite ongoing concerns about supply and demand dynamics, it is important to understand that competition in itself is very healthy, and as a result one of the primary aims of the newly formed committee will be to enhance the competitiveness of the real estate sector as a whole,” added Bin Sulayem.
“So, the overarching message this year for both developers and investors alike, is that the residential market outlook for Dubai in the medium to long-term looks very positive indeed, especially if the government, the banking sector and developers work in harmony,” he said.
“The government can continue to aid the recovery of the market by introducing new and innovative regulations, initiatives and, of course infrastructure, while banks can support with competitive interest rates and easing loan requirements.”