Everyone has heard about the next big thing for UAE, “Dubai Expo 2020” it’s everywhere; on the news in the mainstream media or on social media on the internet. Whether you are watching a Youtube video or scrolling the social media on your mobile phone it’s there in one way or another. This does makes someone thinking that why this is so important for the UAE, why dubai government is investing so much on this? & obviously, what happens after the guests around the world would pack their bags and go back home? Will the fate of dubai 2020 expo site will be rusty, same as the Olympic stadiums of many host cities.
The answer to the last question is a straight and resounding No, and it’s fairly easy to understand the answers for the first two questions. United Arab Emirates is a wealthy natural resources country, but everyone knows that these fossil jewels would not last for ever. Therefore it has been a long term commitment of country`s leadership to transfer the economy from oil based to a tourism based economy. But tourism is also prone to recessions as we have seen in the year 2008 when economic recession hit every industry really hard, thus the policy makers of the nation have envisioned a new plan to make UAE a knowledge driven and industry based economy, thus the dubai 2020 expo is themed around the motto of “Connecting Minds, Creating the Future”. UAE has one of the highest percentage of youth population, with this excellent human resource opportunity in hand, the visionary leadership wants to nurture them with the required skills to boast the future industries which would also attract the talent from around the world. The coming dubai expo 2020 is a big step forward towards to make this dream a reality, this will only help as a catalyst for the economy. The next century is filled with extreme technological advancement, be it the hyper loop the next generation transportation with ridiculous speed of 700Mph; conceptualized by none other than Elon Musk. The list is endless such as 3D printing technology, Artificial intelligence or superfast 5G communication system all these modern breakthroughs will be shaping our world and changing rapidly the way we live. The expo 2020 dubai will provide these technology leaders to display and sell these technologies to the world under one roof. Imagine representatives from more than 190 countries, displaying their technological prowess will definitely help build those specialised companies to build their regional offices based in Dubai, for some companies like Microsoft and Oracle already have offices here. To conclude all of the above facts it is a long term strategic move towards a leap forward in future to further diversify and strengthen the dubai economy.
Coming to the next question which is honestly one of the most critical question anybody can ask in this day and age, a lot of top economists have hesitated to tackle this question. But we are none to predict or suggests the outcomes, but what we can do is mention the facts and steps to maximise the outcome of the dubai expo 2020 and further stabilise the real estate sector to save the industry from sudden fluctuations when the number of visitors recede after the expo dubai. According to gulfbusiness.com apart from the overdue projects of there are around 59,800 approximate properties are to be delivered, but only 80- 90% of the properties would be handed over by the next year. This means by the simple demand and supply rule the price of properties would definitely be increasing, an equilibrium in demand may reach by the end of 2020. The dubai government efforts to relax the property rules and extended visa policy such as 10 years residence permit and hopefully lower entry secondary property mortgages will see a dramatic increase in the investment which will subsequently reflect in the real estate development. Apart from this Dubai Land Department is starting the tokenisation of property which will further fuel the consumption of the properties in dubai, abu dhabi and other emirates in UAE.
It’s a well-known fact that the dubai 2020 expo site will be redeveloped after April 2021 when the expo 2020 ends. This all will become a new suburb for Dubai south. Approximately around 8,288 units will be built along with new shopping malls and schools, rest assured, a whole new community will be built from ground up, and there will be no rusting of dubai expo site after this all ends like the Olympic stadiums of Rio in Brazil. The new metro line built for the area with 10bnDhs in investment is another legacy for which this expo will be remembered. Billions of Dollar around the world marketing will also have a positive impact for the city, post Expo and time leading to expo, this will further improve the image of the country where people would see it as a next investment opportunity. The 2020 dubai expo will also help the young entrepreneurship and there will be initiatives taken to invest in new technologies where the future lies. It is easy to assume that prices of real estate will simply increase after the launch of Dubai Expo 2020, however, in reality, it is quite difficult to predict what is going to happen in the future, even if we try to base our assumptions on historical trends and data. Nonetheless, we believe that the amount Dubai has invested in the 2020 site will show tangible benefits well beyond the Expo 2020 itself. There are more to look forward as the resilience of this country has always amazed the world. No matter what the rumours say there will be an excellent growth opportunity in in near coming future for everyone. After all there are long term growth plans even after dubai expo 2020 such as the Vision Abu Dhabi 2030, which has an ongoing extensive plan to further deepen the economic foundations of the country. Whether it’s Expo 2020 Dubai or the vision 2030 for Abu Dhabi, one thing is confirmed and no one can deny that United Arab Emirates is going to be major economic powerhouse in the region and on larger world events thus rest is assured that any investment in general and real estate in specific will not be deal of loss. There are bright and stable investment prospects in the real estate sector, both leading to and post Dubai Expo 2020.