UAE – Mubasher: The real estate market in Dubai is expected to thrive in 2020, driven by Expo 2020, new government initiatives, and flexible repayment plans, according to Seven Tides, a leading company in developing a residential, hospitality and commercial property in the UAE.
The final quarter of 2019 saw the first evidence of the projected recovery, as around 5,000 real estate transactions were registered in October, recording the highest number of property sales since 2008, according to Dubai Land Department statistics compiled by real estate portal Property Finder.
Moreover, Dubai has one of the fastest growing economies in the region with its target of 3.8% growth in gross domestic product (GDP) during 2020, which coincides with the increasing population that is expected to reach 2.8 million this year and 3.4 million by 2030.
The CEO of Seven Tides International, Abdulla bin Sulayem, said: “With Expo 2020 now only nine months away, Dubai alone is gearing up to welcome more than 14 million overseas visitors during the event.”
(CEO of Seven Tides International, Abdulla bin Sulayem)
He added: “The stimulus of the mega-event, which will yield an investment windfall of AED 122 billion (an average AED 12 billion per annum over the next decade) as well as creating around one million jobs over the same period is expected to positively impact the overall property market in the emirate.”
It is noteworthy to mention that over the last few years, property prices have significantly decreased due to the unplanned oversupply.
Meanwhile, the total number of residential units is expected to increase by more than 10% to 637,000 by the end of 2020, compared to recent years.
To balance between supply and demand, a real estate planning committee was set up in Dubai in 2019. The committee has sought to regulate the sector and develop a clear strategy ensuring that real estate projects contribute greatly in the emirate’s economy and that small private developers are not competing directly with larger semi-government real estate companies.
Bin Sulayem concluded: “Developers for their part need to focus on delivering quality developments in prime locations with unique features which are competitively priced and offer attractive yields – finding the right balance will secure Dubai’s position as a preferred property market in 2020.”
