Real estate in Dubai. Expo 2020
“Dubai will provide visa preferences, tax benefits and a number of other benefits for Expo 2020 participants” – said Achmed ben Said Al Mactum, the chairman of The Highest Preparatory Committee on carrying international exposition in the interview for British publishing and consulting companies on production of annual investment and economical reports Oxford Business Group.
EXPO will take place at the expo center Dubai Trade Centre – Jebel Ali. Multipath logistic network, which apart from two airports, is maintained by the regional railway, will be built for supreme convenience. Exhibition center EXPO in Dubai is consuming 438 ha, where various pavilions and other areas (living, hotel and logistical) will be built.
What is a World Expo?
Grand exhibition of worldwide manufacturing occupations, which took place in London in 1851, established a tradition to hold World Exhibitions as the most important events in the world aiming to boost its relations, estimate cultural diversity and just look at the engineering wonders. As they say: “To see and to be seen”. Recently world exposition EXPO 2010 had been held in Shanghai. It contributed to turning the industrial area in the city center into prosperous business and cultural district as well as to illustrate 73 millions of visitors, the major idea – “The better the city, the better life is”.
Now the World Expo is taking place in Milan, Italy (Date: 01/05/2015 – 31/10/2015). Its main motto is – “Feeding the planet, energy for life”.
Five candidates claimed for holding EXPO 2020: Dubai (UAE), Ayutthaya (Thailand), Ekaterinburg (Russia), Izmir (Turkey) and Sao Paulo (Brazil). Sheikh Mohammed bin Rashid Al Maktoum declared determination to provide an extensive support in conducting this worldwide support and emphasized the major idea of their country – “Senses connection in the name of future”.
Real estate market in the UAE survey: 2013-2014
The UAE real estate players still remember the economic recession in 2008. The crisis was devastating. By 2011 the number of apartment deals shrank by 70%, while the prices were reduced by 50 – 60%.
|Building description||How much does it cost?|
|Apartments in the popular district among the tourists – Dubai Marina, located on the Arabia Gulf coast, a 25 minutes drive from an airport||Studio, 50 square meters in area – $180 000 – 300 000 thousands depending on the complex status value and a seascape.
Two-bedroom flat, 120 square meters in area – $385 000-700 000.
|Apartments on the Trunk of well-known artificial island Palm Jumeirah||One-bedroom flat, 100 square meters in area – $450 000 – 600 000|
|Apartment in Downtown, central Dubai region||Two-bedroom flat, about 115 square meters in area – $600 000-800 000.|
|Villas on Palm Jumeirah island||From $3 000 000 for villa with 3-4 bedrooms|
|The apartment in the central Abu-Dabi districts – the UAE capital||From $200 000 for studio, 50 square meters in area|
|The apartment in Ras al-Khaimah emirate, located on the north of country||From $100 000 for studio 50 square meters in area, located not far from the beach|
In 2012 the situation improved, and next year the most rapid expanding in the world started. During 2013 the property in Dubai increased in price on average for 25 – 35%, while in the most fashionable UAE districts the price explosion up to 60% was observed. The same situation has come about in Abu-Dabi. The real estate market in 2014 developed rapidly, which drove the property prices in Dubai up to the maximum values in 2008. The price gain in the second part of the year began to cool down. It is important to know that owing to the state officials’ cutback, coming into effect anti-corruption programs and sharp fall of state expenses, visa procedures have been simplified and tourist fees were reduced as well.
Dubai designers created the entire city with climate-control, showed environmental initiatives (forest planting in the desert) and built unique entertainment facilities.
The real estate market in the UAE can be widely regarded as international. According to data of Territorial Department in Dubai, apartments and villas in Emirates are purchased by natives from 140 world countries. Among foreign leaders are citizens of India, Pakistan and Great Britain. From January to June 2014 customers invested in purchasing of 9739 property items, which is equal to nearly $5,67 billion.
The market became more powerful and successful, becoming more preferable for long-term investors who aim at raising significant revenues on a regular basis for a long time.
Dubai investors gain annual income from investment to the construction segment, which showings are one of the highest in the world! A splendid opportunity on holding an exhibition EXPO-2020 in Dubai is one of the key factors spurring very rapid development of the UAE property market. Firstly, the construction of hotels, shopping centers and other infrastructure facilities is expanding. Hotel real estate, particularly VIP-class, remains the leading industry. The attendance of luxury hotels often goes beyond the 90% rating.
Market attractiveness in the UAE has increased in 2015, while prices remain on the affordable level for purchasing. Long-term investors in Dubai experience “the golden epoch”, as
- investment can provide steady income for many years;
- financial health in Dubai guarantees the safety of your contributed capital;
- investor`s rights are protected on the legislative level;
- stable growth of real estate market potential;
- preparations for EXPO-2020 exhibition creates additional opportunities for high-profitable investment.
Owing to the announcement of Dubai the World Exposiоtion can be hosted on the Middle East for the first time in 160-year history. The hotels are built, we can see the trading movement, the property area develops with record prices and, more important, young professionals and businessmen from around the world come to this country for shaping the future.
Holding EXPO 2020 in Dubai is a splendid opportunity to bring the role of the Middle East region back to life, as this region is far back a place of meeting and co-prospering trading, cultural and civilization routes.
Today not only Dubai but all UAE can be compared only with goldmine discovered in America. The UAE is really prosperous, rich and promising country.