Are you wondering about Dubai's upcoming Expo 2020? With 2019 coming to a good end, the world looks with bated breath to Dubai's Expo 2020. Set to begin from October 2020 until April 2021, the 2013 declaration of the Expo has already provided a tradition for fruitful efforts. The Expo is already having a positive economic impact and will maintain this trend until 2031 (the legacy period: 2020-2031).
The Real Estate Companies in Dubai had one of the most fascinating impacts it has seen. The same study notes that construction activity has seen positive growth during the pre-expo period, which is Nov 2013-Oct 2020. Although 2019 has seen an increase in the completion of property development in both the residential and commercial sectors, 2019 has also seen the economy shift to a steady state. Pricing is moving towards the price point for 2009-2010, which allows buyers to enter the market.
A huge migration of around 25 million visitors from 190 countries around the world can also be seen at Expo 2020. This is beneficial not only for the economy, where a GVA of AED 122, 6 billion will be produced, but also for the real estate sector, as holiday homes are becoming increasingly popular. Construction has added up to AED 25.7 billion in the pre-expo process alone.
With the rise in the influx of tourists, the centre of attraction for all around the world will be Dubai. Expo 2020 will bring Dubai, its luxuries, accommodation, and premium shopping offerings under the spotlight in terms of investment possibilities for new viewers who have never encountered Dubai. This will boost investment from another segment of the continuum of foreign viewers.
The expo has had a profoundly positive impact in terms of work. With only the pre-expo process creating a total of 262,400 FTE (Full Time Equivalent) work-years, 905,200 FTE work years are planned for the total employment that will be generated before the end of the legacy period. For the economy, this is fantastic news. The beneficial influence of this on real estate is that more individuals will migrate to the UAE, thus pushing up demand for accommodation, leasing or sales.
The effort to monitor the demand-supply ratio in the real estate sector has been taken up by the UAE government. This will push the economy to a stable state, making it much more favorable and balanced for everyone. To control the sector, they have set up a commission. In addition to this, investors often have an incentive dependent on their contributions to receive long-term visas or 'golden card' residency permits. As a percentage of total deposits, the government has eased the rules on foreign investment of companies and the central bank has abolished the 20 percent ceiling on real estate loans. All of these variables have provided very fruitful explanations for investors.
There are other benefits from developers, in addition to the aforementioned, such as post-handover payment arrangements, waivers of property registration fees, waivers of operation charge fees. Up to 75% mortgage coverage is also provided by the banks.
Therefore, the Expo is expected to have a significant and constructive impact on the UAE. It is strongly advisable to invest now in the Developers in UAE so that you can enjoy the benefits in the near future.