Dubai Property Investment 2020
Nations all over the world strive to reach a stable economy. Some countries fail, others continue to progress, and a few effectively rise among others. The main contributors to the thriving Dubai Property Investment this 2020 are the banking sector, the government, and the developers. Together, they create a proposition for sustainable investment.
Property developers and experts believe that the current year, 2020 will be a year for the recovery of Dubai’s property market. You will likely read one of the main reasons is the awaited Expo 2020. The event will generate millions of tourists and will likely convince a lot of people with its economic potential. Experts also reveal that new government initiatives and beneficial payment plans from property developers prompt investors to conduct businesses in Dubai.
Dubai Property Investment Bounces Back!
The final quarter of 2019 marked Dubai’s real estate comeback as they recorded almost 5,000 transactions. It’s the highest number since 2008 property sales according to Dubai Land Department statistics.
The speedy economic growth of Dubai aims to further increase its GDP to 3.8 percent during 2020. The population increase this year is expected to reach up to 2.8 million and 3.4 million by 2030. Local and international investors are attracted by Dubai’s diversity and political stability.
Expo 2020 Turns the Tide
It’s only months away until Expo 2020 and Dubai is eager to welcome over 14 million visitors all over the world. The mega event will turn the tide for the Arab Gulf Tiger, estimated to yield an investment over AED 122 billion. Among the expected boom will be the rise in demand for employment. Businesses, jobs, and tourism will be a giant leap that’ll create a positive impact on the Dubai property investment sector.
The impact of Expo 2020 in the Dubai property investment sector will only be measured by the visitors' return. Experts have seen the downward pressure of Dubai properties over the years due to oversupply in real estate. But the growth of Dubai’s market makes the resumption inevitable. The residential stock is expected to rise by 637,000 units before the current year ends. The number is more than a 10% increase over the years.
Establishing a Committee
Last year, Dubai established a real estate planning committee to address the supply and demand balance. The task laid out for the committee was to regulate the sector and develop a strategy to avoid project duplicates. They need to make sure that they add value to Dubai’s economy. The committee ensures that small private developers don’t compete directly with larger real estate companies affiliated with the government.
Bin Sulayem thinks that regardless of the issues surrounding the demand and supply, the competition remains healthy– thanks to the committee dedicated to enhancing the overall real estate sector. This also encourages developers to find new ways and discover innovative projects, making Dubai property investment stand out.
Technology has matured, giving big breakthroughs and magnifying the potential for every market that uses it. Real estate is undeniably thriving as it adapts the changing technology, reaching remote audiences with the internet, ads, and promotions.
Even the expected million waves to pay off this year indicates nothing but a bright road for the property market.
Bin Sulayem sees the medium to long-term residential market outlook this year very positive for both investors and developers. More so, if the three main contributors, government, banking sector, and developers, work together.
Real estate professionals and developers have all these elements at their disposal to resume Dubai’s downward property market. Investors are also becoming property savvy, taking their time to research and weigh up options. Thus, resulting in developing the residences to attractive homes, selling the units at a premium. Ask us about Dubai property investment today!