Dubai recorded 6,388 sales in the property market in June – the highest number since December 2013
Dubai Expo 2020 is expected to drive residency demand throughout the UAE, and one industry player has already seen increased interest in real estate services.
“We have noticed an increase in international enquiries relating to various real estate services such as sales and acquisition of residential units, opening of new offices and obtaining new development land for potential hospitality projects,” said Hamza Betraoui, managing director of Land Sterling.
“The enquiries have come from countries with which the UAE has recently signed treaties and where Dubai has promoted foreign direct investment incentives.”
The six-month Expo event is set to open in October after being postponed a year to due to the coronavirus pandemic. Organisers are expecting around 25 million visitsthroughout the duration of the six-month showcase, despite ongoing Covid-19 concerns.
“It [Expo] will make people visit Dubai but actually help them understand the country, appreciate it, and want to live in it,” explained Diana Magariu, CEO of Dubai-based Key One Group.
Regional consultant KEO believes Expo 2020 will deliver both opportunities and challenges for the development and real estate industry.
“While long-term gains are yet to be determined, history has been kind to host nations of previous world expos. Indeed, economic change can already be seen throughout Dubai as infrastructure projects flourish and business demand experiences growth,” said Darryl Custer, executive director of KEO’s Design Division.
Dubai’s real estate market has continued to recover from the Covid-19 pandemic that has thrown markets into turmoil globally. Last month the emirate recorded 6,388 sales in the property market – the highest number since December 2013, according to the 16th edition of Mo’asher, Dubai’s official sales price index, launched by Dubai Land Department (DLD) in cooperation with Property Finder.
Sales transactions in June 2021 were 44.33 percent higher in terms of volume and 33.2 percent in value compared to May 2021.
“Although real estate transactions will continuously increase over the next six to 12 months, I believe that there will still be a price decline which will make Dubai’s residential property attractive to investors. Villa prices are going to be more stable as people continue to look for bigger homes and we expect the secondary market transaction volumes to increase even more. Investors are back, however, to trigger recovery, we believe that a cutback on supply of housing is necessary,” added Magariu.
According to Custer, the Covid-19 crisis has also imposed significant changes to the design and development industry, particularly in how projects are programmed and built.
“In terms of design, we see a growing need for built-in flexibility of spaces, especially in public areas,” Custer said. “Another change is the need for a higher level of built-in ‘future proofing’ in preparation of new and future technologies all of which are meant to anticipate unknowable change.
“In terms of programming and getting projects built, we are seeing a higher need for integrated thinking between designers, related governing agencies and developers to work together on more holistic solutions.”
Key emerging development trends identified by KEO include a focus on net-zero design and decarbonisation as part of climate action, sustainable cities and communities with good health and well-being for the users, sustainable infrastructure innovation as well as responsible sourcing and production of materials which encompass the benefits of circular economy, recycling, and sustainable resources.
• All three consultants will take part in Cityscape’s virtual investor intelligence summits and online seminars in the lead up to the 20th edition of the flagship live, in-person event taking place in the heart of the Expo 2020 site – the Dubai Exhibition Centre (DEC) – from November 7-11