Expo and Dubai real estate

As EXPO2020 (1st October 2021-31st March 2022) is fast approaching I, more than ever, am being asked what affect it will have on the Dubai Property Market.  With all that has happened in the last two years speculating the young market is even harder than ever.  There were so many negatives that came out of 2020 but with great management, Dubai has come out the other side faster and stronger.
How will EXPO2020 effect the market:

To start its good to look back at the last EXPO which was held in Milan, Italy in 2015. It attracted over 22 million visitors, according to a JLL report published shortly after, Milan’s Central Business District expanded and grew creating an extra 96,000 sq mtrs attracting large investment from the Middle East and around Europe.  This in turn created a demand for more housing, F&B, transport and amenities. 

Dubai was named as the host for EXPO2020 on the 27th November 2013. Immediately after the launch transactions there were 4,012 transactions reported. This constitutes for 16% of 2017 total transactions in just one month. 
Dubai is expecting 25 million physical visitors from the 1st October to 31st March 2022, if travel restrictions get easier during that period, then this number could considerably grow over the course of six months.
In light of the above data, I do believe that EXPO2020 will attract more investment into Dubai, in addition to multiple exciting off plan development launches in the pipeline, the ROI is still higher than any other major City.

It has been widely reported that the luxury property market has spiked in the last 12 months; 466 of transactions have been over AED20,000,000 ($5,500,000) in value. This is widely due to the availability of some of the most amazing properties you will see, custom built villas and branded, designer developments, potentially due to the lifestyle attraction of Dubai.   

Below is the properties that sold off plan and on resale above AED20,000,000
(16/09/2020 – 17/09/2021)

Off Plan (Primary)
Apartments – 57 Transactions – AED20,035,000 for a 5 Bedroom in the W Residences on the Palm Jumeirah to AED31,672,000 for a 4 Bedroom in The One, also on the Palm Jumeirah.
Secondary (Resale)
Apartments – 15 Transactions – AED20,000,000 for a 3 Bedroom in Palme Couture on the Palm Jumeirah to AED72,000,000 for a 4 Bedroom in the same Development.
Villa/Townhouses – 186 Transactions – AED20,000,000 for a 4 Bedroom Umm Suqueim Villa to AED121,000,000 villa on Jumeirah Bay.

There were 50,575 total residential transactions including hotel apartments, commercial, land, full floors and buildings in the past 12 months.
The cheapest to the most expensive of residential off plan and resale only:
Off Plan – 20,481 transactions
Apartments – 14,302 transactions from a AED200,000 studio apartment in Arjan to a 5 bedroom in Opera District, Downtown, Il Primo which sold for AED44,315,899.
Villa/Townhouse – 4,170 transactions from AED400,000 1 bedroom villa in Rukan by Continental Investments to a AED13,000,000 villa in Sur La Mer by Meraas.

Secondary – 27,161 transactions
Apartments – 16,387 Transactions from AED105,000 for a 1 bedroom in France Cluster, International City to a 4 Bedroom in Palme Couture.
Villa/Townhouses – 10,774 transactions from AED500,000 for a 1 bedroom villa in Claret, Damac Hills 2 to a villa on Jumeirah Bay for AED121,000,000

If you are looking to value and maximise your current assets, find your dream home or just ask advice, please feel free to reply to this email.
Laura Victoria Adams

Data from propertymonitor

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