A Report by a leading Property Consultants and Estate Agents specialising in the finance, sale and purchase of residential and commercial property, has given a projection of the property values in Dubai recording a rise in 2018, for the first time in three years. This projection is largely attributed to the largest mix of trade exhibitions or world fairs “Expo 2020 effect” and the new tax system of United Arab Emirates, UAE.
The ensuing Expo 2020 is to be held in Dubai from November 2020 till May 2021 and according to a New York City, business-related, English-language international daily newspaper it is estimated that the Expo 2020 would witness an approximate foot-fall of 25 million tourists. The international fair “Expo 2020” is to be held in the Middle East as a global event in this region for the first time in recent history an would bring about growth in the real estate market in the region.
As per the said international daily, the Dubai Head of the leading Property Consultants and Estate Agents has written in the said report that the Expo 2020 is expected to raise the job creation rate and demand of tenant. Expo 2020 coincides with the new tax system of United Arab Emirates, UAE. The Head of Research of the leading Property Consultants and Estate Agents told a Gulf based newspaper that the new tax system would possibly lead to better payment schemes for purchasers of real estate in Dubai.
The Head of Research of the leading Property Consultants and Estate Agents also went on to exemplify the oil price stabilization and the goal set by Dubai of increasing its population by double as factors, which will set the stage for Dubai’s long-term market growth. As of now the remaining period of 2017 the value of property in Dubai are plunge between 4 to 5%.
The real estate business in Dubai eagerly awaits the much needed boost, emanating from the synergy of Expo 2020 and a new tax system, as the proverbial shot in the arm for recovery of the real estate market there.
Therefore, with more projects being in the pipe-line for the Expo 2020, which is to be held in Dubai the year 2018, there would be a spur in the job growth and this would aid the recovery of Dubai real estate market.
The view point described is a general view point about the real estate market in Dubai. This now needs to be assessed based on the submarket section wise. Like for instance with the increase in job creation owing to Expo 2020 the demand for affordable housing rather than the luxury properties will see a rise. Thus before making any projection we would need to assess carefully the reasons for increase in demand in a particular class of property and logically talk about the future of property value in Dubai.
Those looking for a positive arbitrage could find an opportune moment to invest in Dubai real estate market at the moment, with speculations of the value of property in Dubai expecting to rise in 2018 after having seen a decline in price for the last three years. The expected net yield in excess of 8%, more in comparison to global average rate in real state property value, is an ever more attractive proposition for investing in property in Dubai.