Dubai is Rising Again with Soaring Real Estate Market
The Expo 2020 impact on the real estate market of Dubai
COVID-19 had a severe impact on Dubai’s economy due to which investors faced many ups and downs in the market flow. Despite the crisis, the real estate market of Dubai maintained a positive impact. The developments increased and the property demands rose.
The real estate market faced heavy deviations in the secondary market. However, prices are gradually stabilizing in elite and prime locations. At the start of 2020, the real estate market of Dubai experienced an increase in rates on a month-on-month basis. Due to high demands, the property rates grew higher. The investors expected attractive benefits during the residential property Expo 2020. This caught more fuel as COVID-19 became the concern for property giants.
According to the stats by Ernst & Young (EY), Expo 2020 can bring about 62.2 billion AED to Dubai’s economy. Also, from 122 billion AED of gross value added, the construction sector alone brings about 27 billion AED. These figures were 37.7 billion AED between Expo 2013 and 2020. Back then, the construction sector contributed 25.7 billion AED. That shows an excellent edge for the real estate business in 2021.
Another report claims that in January 2020, the year-on-year transactions rose by 12%. This percentage grew further in February 2020 to 33 percent. Moreover, the real-estate transactions had an exuberant rise of 76% in the off-plans. Hence, investors and business magnates sought great interest to invest in Dubai.
Increase in UAE’s Residential Real Estate Market
Despite the adverse effects of COVID-19 on the UAE’s economy, the property sector’s investment kept the flow moving. Hence, transactions grew more in rental and buying dealings. This resulted in the increase of new projects and development in the residential real estate market in the UEA.
The real estate market of Dubai grew 9.74% in the first quarter of 2020 compared to 2019. Furthermore, the pandemic-affected year 2020 turned out to have the highest real estate transactions since 2017. This shows that property business can be a worthy investment for investors to buy property in Dubai.
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