Infrastructure ‘to draw most of early Expo spend’
Dubai, November 28, 2013
Dubai’s successful bid for Expo 2020 will see initial investments aimed at the delivery of the Expo site with major spend accelerated towards transport infrastructure, retail, leisure and hospitality, said an industry expert.
“Dubai’s successful bid will signify to the rest of the world that the Emirate has now cemented its pathway to recovery following the global financial crisis that crippled global real estate markets,” added Steve Morgan, head of Cluttons Middle East, a global real estate consultant.
“A positive result will also go some way to ensuring steady growth to 2020 and beyond and mark the start of a new era in Dubai's evolution, rather than the end of the remarkable growth story we have experienced thus far.
“With an expected increase in population in the region of 3 million projected by 2020, we are now likely to see the on-going development and growth of the city southward, away from the coast as Dubai's urban boundaries are pushed out further. The fast-tracking of projects designed to complement our city's 2020 vision of hosting 20 million tourists is inevitable and this will involve the resumption of work on some of Dubai’s stalled schemes,” he added.
“This positive decision will act as a catalyst to help move planned expansion work along to the next level and provide visible goal posts, along with a definitive reason to get the work completed, although many of these planned projects would have materialised even without the Expo, albeit in a more organic fashion,” Morgan noted.
“We feel the much talked about ‘Expo boost’ has already been priced into the real estate market to an extent. Dubai has already seen a surge in property prices and we expect a trend of more stable and sustainable growth to persist over the short term. This is going to be underpinned by recent federal and DLD regulatory changes and is already being reflected in overall market activity.
“Population growth, hand in hand with job creation will mean that housing demand levels will continue to rise, but the Expo will boost investor confidence and help lift values further as global capital hones in on our city, particularly in the months leading up to the Expo when a mini surge is almost inevitable,” he added.
“Dubai’s win will serve to boost business throughout the emirates and benefit the commercial sector nationwide. Furthermore, the Expo win will give the global business community a reason to be positioned in this part of the world.
“With the recent opening of Al Maktoum Airport and one of the world’s busiest seaports nearby at Jebel Ali, we expect to see a number of aviation related and industrial occupiers look to take space at Dubai World Central and Industrial City, particularly as Al Maktoum Airport starts gearing up to host a projected 160-200 million passengers annually, making it both the world's largest and busiest airport. This exciting news will see Dubai press on with its ambition of creating a world class city, arguably one of the most remarkable ever seen,” Morgan concluded. – TradeArabia News Service