Dubai Expo 2020 happens every year, and everyone is aware of the benefits of this event. As the 5-year plan and 50 goals still roll, there is an understandable hype in showing what has been achieved out of the expected goals. One of the biggest sectors that will be affected by this event is the real estate market. What would investors and buyers expect during the months before, during, and after this international event?
Want to know if you should buy an apartment in Dubai? Things will be different depending on whether you’re an investor, a renter, or a property buyer. But if you’re looking for residential properties for purchase or rental, 2020 might be your best chance to grab a unit. Here are the things that are expected to happen in Expo 2020.
New residential units to hit the market this year
The supply for real estate properties is expected to be at its peak in 2020. This year alone, there are more than 50,000 new residential units expected to be finished. Expo 2020 has a big effect on the demand for residential units to accommodate millions of people who are expected to be present for the event.
Most of these residential areas are on Dubai South, Dubai Production City, Jumeirah Golf Estates, Al Furjan, Dubai Investment Park, and Downtown Jebel Ali. Top communities include the Al Andalus, Lakeside, and Ritaj. Although most visitors will be renters, this is a big chance for developers to showcase their residential units to prospective buyers.
But for the most part, the winner of this development are buyers who want to reside in Dubai. Ex-pats and professionals are among the main factors for this move. With more and more residential options, more and more people are willing to start a new life in Dubai.
Why the Shift from Luxury to Affordability?
A few months ago, developers decided to shift their focus from building luxury properties to residential units. Why did they decide to shift their focus from luxury properties to the more affordable residential properties? Data shows that the demand for a more affordable option raises the chances of people buying a property instead of renting. The demand for this kind of product is also increasing, with a 14% rise compared to the same period last year.
Payment options are no longer as limited as before, too. This makes getting a property in Dubai easier and more convenient. Real Estate Self Transaction or REST is a new platform being rolled out by the Dubai Land Department, which is another initiative to attract more buyers and investors. REST supports buying, selling, and renting transactions for both the tenant and the landlord.
In addition to the REST platform, the Government also implements the Golden VISA to attract more international buyers. This VISA allows a foreigner to have a residency for ten years. Although only offered to investors, artists, engineers, doctors, and scholars, the VISA has been a great success. Over 6,000 applications are received for the first week alone.