THE DUBIA REAL ESTATE MARKET

Client’s objections on market instability and guarantee of the market getting stable again.

Solution:

"Almost 200,000 people come to Dubai every year, of which at least 100,000 require apartments to live in. With four people living in an apartment on average, at least 25,000 new apartments are needed annually in Dubai. However, not more than 15,000 to 17,000 units have been delivered in Dubai in the past few years."
There are 40,000 units scheduled to be completed by the end of 2018. However, the materialisation rate will be much less, probably around 15 to 20 per cent, which has been the consistent rate over the last few years. There are over 70,000 units scheduled to be completed in 2019 and 35,000 units scheduled to be completed in 2020

After Expo 2020, Dubai will be counting on a legacy effect to drive the real estate market forward.
According to ValuStrat, Dubai's population grew by 278,000 people during the past year alone, driven by increasing job and business opportunities in the city.

"We expect a high percentage of the additional [Expo 2020] demand will come from blue-collar workers and staff earning incomes of less than Dh5,000 per month. These people will require adequate supply of labour and staff accommodation. This is followed by engineers, project managers, technical, marketing, financial, HR, IT and other employees required to help build the project and later work in it. We expect that most of the lower-end jobs would no longer be required after the event,"
Of the 20 million visitors expected to visit the Expo, a healthy portion would consider staying in Dubai for business or employment reasons.

"We expect a longer term 'legacy benefit' of Expo, part of which would market Dubai's various offerings such as business, trade, hospitality and tourism on a much wider global scale, resulting in a sustained growth in demand for commercial and residential properties," Tuaima adds.

Besides Expo 2020, market observation also cites other engines of growth. The string of recent economic reforms are expected to attract more expats to the city, thereby filling up the inventory.

"After Expo 2020, with all the initiatives driving the UAE - Dubai's Smart City initiative, Abu Dhabi's Economic Vision 2030 and the Happiness Index, I see many positive engines of growth. In addition, the 10-year visa legislation, new foreign-owned company rules and the country positioning itself as a startup entrepreneurial hub, all of these are aligned with the ambitions of property developers to fill homes. Dubai is putting all the proper steps in place to attract more expats and achieve demand,"

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