UAE and MENA Real Estate report conducted and posted by Informa markets in 2021 highlighted the fact that 74% of respondents are anticipating a recovery for the MENA region real estate industry within the next two years. Despite the global challenges caused by Covid-19, the credit goes to the mega events conducted by EXPO 2020. The impact hasn’t stopped at the real estate industry alone, it has impacted several other sectors such as hospitality, restaurants, F&B and luxury housing, industrial and logistics too.
Expo 2020 already has 121 LEED buildings, 12 of which are certified Platinum, the highest rating for sustainability. These buildings are constructed with sustainable materials and are certified because they have low carbon footprint, good air quality and significantly reduced energy and water consumption. This step towards a sustainable urban environment is definitely a trend that will continue in the near future, especially as more businesses develop their CSR ethos and strive to be environmentally sustainable. However, this trend is not limited to commercial real estate. Austria, Spain, the Netherlands and many other countries have demonstrated thru their pavilions the ability to bring sustainable practices into homes, especially when it comes to construction. These new technologies will serve as the basis for modern urban planning. Therefore, UAE developers should be encouraged to adopt these green practices as they see the bigger picture of Dubai's future.
Very noticeable opportunities have risen to the surface to be seized by the craving investors, yet it’s hard to anticipate a long-term viability of any real estate deals. What is interesting is that investors are no longer limited to developing in the downtown area, and they have futuristic plans to expand in urban areas. As we speak these areas are going through massive development process. We all know that not everyone can afford a 2-bedroom apartment for rent or lease in downtown specially during the recovery of 2 tough years.
Several factors played massive roles in shaping the mindset and market trends for the whole land ecosystem, Covid was one among it and that they have made a number of us more practical when selecting where to move and made it even less important for others to be demanding about the locations they choose to occupy specially during the lockdown time.
Expo’s location was chosen carefully by the wise government where it attracted the investors and developers’ eyes on the urban area closer to the Expo’s physical location to create more attractive communities to reside in. As of December, there were 6,388 sales on Dubai's property market – Dubai’s highest level since December 2013, according to Dubai Land Department's (16th) Mo'asher index of sales prices, launched by Property Finder.
Dubai Expo added to the excitement because there are so many people visiting Dubai right now that they tend to spend a lot of money since 70 to 80 per cent of the visitors are new to the city. When they see Dubai's growth, the vibe, the security, the economy, and everything there is for them to enjoy, they tend to buy.
The Expo site will be transformed into District 2020 while retaining most of its attributes. The Expo is attracting a huge number of people to Dubai and introducing them to its upscale lifestyle, safe environment, and potential for huge earnings.
The upgraded and new infrastructure has enabled investments in the area surrounding the Expo 2020 site, making living in these areas a more viable option. There are plans for extensive development of new residential areas and infrastructure development including metro extensions and shopping malls and other recreational areas. The Dubai Expo site and surrounding areas have been included in the Dubai City Masterplan 2040, which includes major changes to the city's downtown area. So, what's next? Will there be a real estate boom in Dubai after EXPO 2020? Well, in a nutshell, Expo 2020 is just the beginning of Dubai`s new future. This global event is expected to kickstart business development and encourage foreign investment into the country, which will allow the country to further diversify its economy and create a thriving, attractive place to both live and work.