Samuel OskysThe Expo 2020 Dubai will take place in Dubai from October 20, 2020, until April 10, 2021, and promises an unforgettable experience, a celebration of humanity, cultures, creativity and innovation.
192 nations will take part in the Expo 2020 and each nation will have its own decorated building. It will be a unique chance to band together at least 11 million foreign visitors from different nations that face similar challenges when it comes to mobility, opportunity and sustainability.
Dubai Real Estate Market
But even though the Expo seems to bring solutions to the real estate industry, there are those who believe that it won’t improve the decreased property prices of the Dubai real estate market.
The Expo 2020 world fair may indeed attract even more tourism during this period, but it’s not expected to improve the Emirate’s real estate market which is vital to the Dubai economy.
The possibility that this event will work well for hotels and retailers is high, but the long-term conditions in the real estate sector will not be affected as much.
According to statistics, early 2019 the year on year economic growth was around 2% and the same goes for the real estate activity of the nation, which also contributed approximately 7.5% to the total GDP. But although the economy in the region is dire since 2014, the flexibility of Dubai’s economy along with the business structure of the nation has helped it maintain economic growth.
Industries like foreign trade, oil and tourism, have supported the Dubai economy and protected the status it has as the main hub for business services in the region. But the same cannot be said for the real estate market, as the prices have been down for over 5 years.
Properties prices have fallen over 10% and will most likely drop further by the end of 2019. Having said this, the nation of Dubai has set up a planning commission for the real estate sector to regulate projects and avoid private agencies being too competitive with semi-government firms.
Damac Damac.DU, one of the leading property developers in the region, believes that everyone should stop residential projects for at least a year in order for the country to recover its real estate market.
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