With the start of a brand new year, and decade, comes the opportunity for new avenues and exciting market trends within the luxury property sphere. The global positioning of Dubai provides a unique pathway in terms of economic growth that is unlike anywhere else in the world. For those looking to sell their home, buy a new property or expand an existing investment portfolio there are some key trends and evolutions that are set to shape the industry in the coming months. We are taking an inside look into how those changes will affect the luxury property sector and how you can take advantage of them with a little help from Gulf Sotheby’s International Realty.
According to a recent piece in Gulf News, the International Monetary Fund (IMF) provided a revised growth forecast for the UAE, concluding that the “country’s GDP will grow up to 3% in 2020 from a relatively modest growth of slightly above 1% in 2019”. Attributed to visionary foresight, geography and international investment, this continued growth has wide reaching benefits for every sector, particularly when it comes to real estate. The uncanny ability of the UAE government to attract visitors, residents and businesses from all over the world has cemented its expansion of non-oil revenue streams, a crucial stabilising factor, and as a result the steady influx of people and brands ensures that the demand for housing and commercial spaces will continue long beyond 2020.
The EXPO effect
The build-up has kept us all in raptures in the last four years, but now that 2020 is finally here, everyone is talking about EXPO. The six month event officially opens in October, but its impact and legacy stretch far and wide in both directions. As well as the project visitor numbers of over 25 million, this once in a lifetime event is on track to created nearly 1 million jobs and contribute an extra 1.5% to the UAE’s GDP. The rapid expansion it has generated could be a cause for concern in less strategic hands, but the government has undertaken vital measures to ensure the evolution of a more mature investment environment with far-reaching opportunities for long-term economic stabile and growth.
EXPO 2020 is a chance to further introduce the world to the unique attributes of the UAE and encourage further investment from international channels. Access to our enviable position in political and trading arenas is coveted by large multi-nationals and SMEs alike. The 172 day EXPO promises to enhance our reputation as a force to be reckoned with and result in an even larger accommodation of brands and individuals with an eye on the future. More people means more business and that means more demand for residential properties, particularly in the luxury market. Developments like District 2020 and Dubai Hills are key to capturing the legacy of EXPO 2020. Not only will they provide new commercial concepts and leisure space, they further increase the variety and innovative design options required for the luxury property market. In part two of this 2020 market trends assessment we take a look at the steps being taken to position the UAE as one of the world’s leading sources of stunning luxury property and the government initiatives that are changing the demographics of our nation.