Is the second coming for Dubai’s property market on the horizon?
Rental and sales figures continue to record strong growth results, as a new confidence returns to the sector. Industry statistics and commentary reports seem to suggest the region is making a solid recovery in the wake of the property crash of 2009.
However, the new boom is likely to be more gradual and modest as the Emirate is still learning from its mistakes of the past. This time round finance will no longer be as cheap or accessible as it once was during the decade of excess. Growth will depend on and be linked to the services and exports Dubai creates rather than relying entirely on the real-estate market to suck up the cash. However, the revival could in fact outlive the last growth spurt and create a positive legacy rather than leaving behind a graveyard of failed projects. If managed correctly Dubai’s population could increase by 50 percent by 2020 further pushing it deeper into a range of new industries like food processing and diamond trading. With the end of the decade in sight Dubai’s powerbrokers have also targeted winning Expo 2020 to further accelerate recovery, growth and showcase its services.
But just what is Expo 2020?
World Expos attract millions of visitors who explore and discover exhibitions and cultural events staged by hundreds of participants including nations, international organisations and businesses. The UAE is bidding to host the World Expo 2020 under the theme ‘Connecting Minds, Creating the Future’. The event, which is staged every five years, lasts for six months and would attract millions of visitors to the region creating spin-offs for hotels, restaurants and several other industries. The Emirate is considered a front-runner to succeed Expo 2015 in Milan.
What impact will it have on Dubai?
A recent report by Oxford Economics shows that Dubai Expo 2020 would support more than 277,000 jobs. It also said a total of 77,149 jobs would be created between 2013-2021, 40 percent of which would be within the travel and tourism sector. With a job boom on the horizon coupled with continued development of the energy sector, it paints a positive picture for the region. The Middle East is abundantly endowed with oil and gas resources. Most forecasts indicate that dependence on oil from the area will increase in the coming years, as production starts to decline elsewhere. With Dubai’s growing status as a communications hub, Shell, and various other major firms, are bringing operational excellence to new and existing regional projects – on time and on budget.
And what does all that activity mean for the wider industry?
There will be undoubted positive spin-offs for the real-estate market, increased construction programmes with blueprints for new shopping malls and heightened interest in expats keen on moving to Dubai. All the increased activity should also create opportunities for businesses, as well as helping to plug skill shortages. Most importantly, nearly a decade on after establishing an office in Dubai, Fifth Ring is ideally positioned to capitalise on the predicted activity in the region.
The Dubai buzz really is back.