For many years, business analysts who have been observing the Emirati real estate sector have gone on record to state that Dubai's property market will experience a significant spike post expo. The reason behind the spike is the inclusion of various global businesses wanting to setup business in the UAE and choosing Dubai as the ideal location for the same. Many leading hotel business and hospitality plus tourism service providers have already made their intentions clear by investing in the real estate sector.
Due to the interests shown by the various corporate entities, the rates for commercial and residential properties in Dubai are also expected to upsurge because of high demand. Many of these firms hail from eastern parts of the world, such as tech firms from China, corporate firms from the South Asian regions, etc. The return percentages are predicted to increase from 6%-8% (pre-expo) to a whopping 10%-12% (post-expo), rivaling those of tier-1 business locations such as New York, Paris, and so on.
Impact of Expo on Dubai’s Real Estate Market
The Dubai Expo 2021 has outlined several promising growth opportunities for businesses observing the scope and extension of which new business owners plan to set up business in Dubai. The Expo will serve as a massive plethora for innovators and aspiring entrepreneurs to grow their business in the Arab market. The real estate sector, especially for the hospitality and industrial leasing sector, is expected to boom post the Dubai Expo 2021 following the introduction of new corporate entities into Dubai's economic ecosystem.
The event is expected to pool in AED 122.6 Billion into the local economy, along with providing a significant employment boost with 49,700 jobs in the year 2021. In the previous year 2019, a major influx was experienced in the real estate sector due to the innovative marketing, advertising, and PR activities conducted by the organizers of the Expo. Approximately 5000 cumulative multi-tier transactions were conducted relating to real estate purchases or sales in Dubai.
The aggressively marketing global event will be a monumental celebration of the UAE vision 2021, which will mark the achievement of crucial goals that had been set by H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai for his prestigious nation of United Arab Emirates. These goals include cultural diversity in the corporate world, preservation of Emirati heritage, and achieving sustainable development goals for securing a self-sustainable self-sufficient future for the Dubai economy and the UAE as a whole.
District 2020 - Contributing to the Real Estate Sector as a Business Park
District 2020 is a tremendous location where legacies will be submitted, and history will be made. The venue itself is a monumental achievement in the field of infrastructure, flaunting automated structures, and renewable energy to its architectural credentials. District 2020 is found to the south of the Dubai Investment Park. And the enthralling fact about the venue is that post the Dubai Expo 2021, the government plans to retain the location and convert it into a business park where start-ups can seek incubation, and global conglomerates can set up corporate offices.
The official premiere partners of the Expo, namely Accenture and Siemens, have already booked parts of the venue for setting up their business in Dubai. District 2020 will witness the urbanization of the Dubai Expo 2021 site into a smart self-sustainable micro city-within-a-city that welcomes an innovation-driven business ecosystem while being a diverse and thriving urban community. The business park/hub will be a playground for Dubai’s growing start-up sector.
How can Commitbiz Help?
We are thoroughly observing the Dubai Expo 2021 and determining the various impacts that it will have on the business atmosphere in Dubai. As the event is close to becoming a reality, we plan to bring new articles to indicate how this juggernaut venture will influence different industries. We at Commitbiz are professionals in the field of business setup in the UAE and various global locations. Moreover, we provide administrative services such as company secretarial services, accounting and bookkeeping, and nominee director services. Contact us to know more about starting your business in the UAE.