Residential and commercial spaces in the UAE are poised for a 7-9% increase in rent while luxury properties will see a 9-14% increase in price in the first quarter of 2022, forecasts Stones, a leading independent real estate consultancy.
Price and rent for properties are expected to increase by 10-15% by the end of 2022, Stones predicts.
The real estate consultancy predicts that the opportunities generated due to Expo 2020 will transform the UAE’s real estate landscape.
As Expo 2020 Dubai enables the country to demonstrate its business potential apart from its capacity to host a world class event, the UAE's real estate market is expected to flourish even more in the future.
The global platform has attracted a continuous stream of investors, brokers and homebuyers seeking to expand their business in the region resulting in a graduate recovery of the UAE’s real estate market.
A recent report published by Ernst & Young, observes that Expo 2020 will boost UAE's economy by AED122 billion ($33.22 billion) and also elucidates the revival of the tourism sector and surge in demand for rented apartments in the context of the global event.
Kundan Choudhary, Chairman of Stones, said: "In 2020, we worked on more than 25 commercial and 35 residential projects and have observed an increase in demand for luxury properties and an increased inflow of foreign investments to the UAE. In the past year alone the demand for luxury properties increased from 20-30% while this year it increased by 10-15%. Many investors are increasingly looking for sustainable, eco-friendly properties as they are keen on reducing their carbon footprint.”
The growing demand for luxury properties across UAE is also the result of many looking to reside in the UAE due to its exemplary response to the pandemic along with the numerous investment opportunities.
Recognising the evolving expectations developers too are rushing to adapt to the changing demands of potential investors and organisations.
“Businesses have already begun to review the way they structure and operate in commercial spaces and have started seeking similar spaces in the UAE,” added Choudhary.
By 2022, the UAE real estate market will change dramatically due to rising demand for larger residential units, the return of foreign investors to Dubai, expatriate-friendly economic reform measures, and 100% foreign ownership of onshore enterprises.
Though the long-term impacts of the world expo are yet to be determined, the influx of investors and realtors to the region recently can be seen as its impact. Stones has also witnessed a surge in the demand for luxury properties in prime locations such as Dubai Hills Estate, District 1 MBR, Palm Jumeirah, Jumeirah Bay and Emirates Hills.
Dubai has witnessed an increase in entrepreneurial and investment activities because of economic reform and investor-friendly policies. The Expo is predicted to have a continued positive impact on the economy of the host country even 10 years after it finishes. As a country that has vaccinated most of the population, businesses and investors find UAE with a resilient economy and a stable and safe investment destination.
The legacy of Expo 2020 will continue to have an impact on the emirate's real estate market, dubbed as the Expo effect since it has created a whole new focus for investors.
Despite a worldwide economic slump, the UAE can expect a steady demand for residences as previous Expo hosts Shanghai and Milan too reported an unprecedented growth in property prices after the event.-- TradeArabia News Service