Confessions of a Real Estate Agent - February 2018
1 February 2018, and just 992 days before the World Expo opens in Dubai in October 2020.
Those of us who have lived in Dubai for some years know that the city will put on a great show over the six-month exposition period. This is an opportunity for the world not only to visit one of the fastest growing and alluring cities but also to learn more about the remarkable story of the United Arab Emirates and in fact, the entire Middle Eastern region.
The World Expo is considered to be the third-largest global event in terms of economic and cultural impact, coming after the Olympic Games and the FIFA World Cup.
The Eiffel Tower in Paris is a landmark legacy from one of the World Expos that have showcased technology, architecture and culture every five years since London’s inaugural Great Exhibition of the ‘Works of Industry of All Nations’ in 1851.
However, hosting a World Expo is much more than just buildings. Bidding cities count on an economic boost and a higher international profile, marking a certain ‘coming of age’ for a city.
Jobs are created as large construction and infrastructure projects get underway, and international and local tourism increases, producing a boon to restaurants, hotels, car rental agencies and other businesses. Dubai, for instance, expects more than 25 million visitors and 300,000 new jobs.
From my perspective, I am interested in the impact that the World Expo will have upon the local economy, in particular, the real estate sector, before, during and after the Expo. We can already sense a gathering, a momentum gearing up to the actual opening date.
Legacy, or what remains in functional use after all the visitors return home, is the key focus of recent Expos. The gap between the potential and actual impact of the Dubai World Expo will obviously narrow as we head towards the period, perhaps up to five years, after the Expo has closed. According to Jones Day analysts, the event is likely to generate around $23 billion (£16.3 billion) for the emirate, equating to around 24.4percent of Dubai's current gross domestic product between 2015 and 2021.
It seems that the positive impact upon Dubai’s real estate sector of the World Expo will come from three areas:
1. Job creation - around 300,000 direct jobs and at least a million indirect jobs throughout the UAE. Skilled people in the travel and tourism sectors will be recruited and housed from both inside and outside Dubai, providing a massive boost to both property rental and purchasing in the city
2. Tourist visitors - of the total visitors (25 million plus) expected to head to Expo 2020, around 17 million will be international tourists who will visit the emirate. Such large numbers of tourists will boost Dubai's hotel and rental apartment businesses, leading many to go on to conclude actual property purchases as a result of their visit to the city.
3. Completion of major projects - further enticing visitors to consider property purchases are the exciting projects completed and coming on stream, notably, the Dubai Water Canal, Bluewaters and Dubai Eye, Creek Harbour Tower, Museum of the Future, Deira Islands, Dubai theme parks, and Jewel of the Creek, among many others.
But there is another, far more potent and long-lasting impact that may emerge from the millions of visitors drawn to the World Expo and its peripheral attractions. Many people will experience the city for themselves rather than via the often unfair and tarnished view of the city that they may have read about in tawdry and explosive media reports.
The fact of the matter is that having lived here now for 15 years, I consider Dubai to be one of the safest, cleanest, and most exciting cities in the world - and I want the world to enjoy it for themselves.
Thank you for reading and I hope to see you very soon!