LOADING

Type to search

Expo 2020 delay, a positive catalyst for Dubai real estate

Share

The real estate industry is a key pillar of the UAE economy, and it has been going through a correction phase in recent years due to the widening gap between supply and demand.
Leading property developers had been rushing to complete their development projects ahead of Expo 2020, which has now been rescheduled to next year in the wake of the coronavirus outbreak.

The start of 2020 brought about almost 5,000 residential units available for sale. According to Core’s reports, this brings the total number of residential units in Dubai up to 555,000. This was all in anticipation of the massive influx of visitors the Expo 2020 was set to bring.

The delay of Expo 2020 could be a positive catalyst for the real estate industry, as it will help attract investors for ready residential units in the market. Developers have held on new projects and slowed down the pace of work on existing developments so they will be able to market existing stock to potential buyers ahead of the six-month long mega event, which is expected to attract 25 million people across the world.

The UAE real estate market is suffering from an oversupply, with more projects nearing completion, so the delay in World Expo, could help to resolve this key issue by affording more time for developers to sell their residential and commercial units, as prices become more affordable.

Even though the UAE economy is facing a significant challenge, the real estate market will continue to mature. Given the long-term nature of the investment that real estate has always had, it’s safe to say the market is going to survive and growth will come back.

Real estate consultants and agents claim their recent clients are in search of bigger living spaces. It seems the pandemic has changed consumer behaviour and made a new demand for villas and townhouses, with numbers of transactions rising.

The date of the Expo 2020 has shifted to 2021 and times are challenging but the desire for people to visit, live and work in the UAE has not diminished.

 

To see the full article please visit Khaleej Times.com

Tags:

You Might also Like