As Dubai, along with the rest of the UAE, aims to diversify its economy, opportunities for growth especially in the real estate sector continue to increase. In this article, we will discuss the implications of the Arabian Travel Market (2014) and the World Expo 2020 on the hospitality and tourism sector of Dubai and what this spells for real estate investors.
Without any doubt, it is the construction, real estate, and hospitality industries of Dubai that will derive the maximum benefit from Dubai Expo 2020. There will be a notable growth in Dubai’s hotel capacity that is required to accommodate the attendants of the event. 25 million visitors are expected. It is expected that 45,000 additional hotel rooms are to be added to the existing 80,000+ rooms already on offer. The estimated value of the total hotel capacity required by the end of the decade is estimated to cross US$7 billion.
But that is not all, for there will also be expansion in residential property sector to accommodate expatriates and laborers who will relocate to the Emirate before and during the Expo. Moreover, there is also going to be major impact on demand for commercial property. Offices will grow to cater to logistics and marketing companies that will open shop in Dubai in the wake of this international event (the World Expo is the 3rd biggest event in terms of economic and cultural impact after the Olympic Games and the FIFA World Cup).
An example of the ongoing real estate investment in this context is the Mohammed Bin Rashid City. Components of this plan include:
The 2014 Arabian Travel Market (ATM) further showcases the achievements and tourism offerings in Dubai. This was the 21st installment of the ATM and it was a visitor ocean in its own right with 21,000 trade visitors and 2,700 exhibitors. The space of the event itself covers about 25,000 square meters, as the organizers had to add one extra hall since last year.
The site for the venue of Dubai Expo 2020 is itself spread across 4.3 million square meters. The site will house the expo headquarters and is estimated to include 700,000 square meters of pavilions and other venue space and 500,000 square meters of permanent structures. The cost of constructing the expo site, along with developing supporting infrastructure is expected to be US$7 billion. The visitors are expected to come from 157 countries. Almost 120 hosted buyers from the luxury, cruise, medical and leisure sectors confirmed this. The number of new hotel properties since last year has increased and the upward trend will continue in the near future.
The cost of developing real estate runs into several millions. However, with real estate crowdfunding in the picture, you can also invest in the property market even if you don’t have all the funds. Get started today.