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New Downtown emerging in Dubai: Areas in demand around Expo 2020

80% of the Expo-built environment is planned to be retained for District 2020.

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As Dubai works on building different downtown neighborhoods of urban planning, a new center is an emerging fast on the horizon of Dubai’s property market, attracting a large number of users and investors due to its economical proposition for tenants and better return for investors.

Industry analysts say that Expo 2020 and Al Maktoum Airport areas such as Dubai South, Meydan City, Mudon and Town Square etc will be the next big downtown area, as they are already seeing a faster inflow of residents. Since it is a place to be in terms of infrastructure and mobility, it is expected that the prices will be improved and offered as well as the areas that have already been developed such as JBR, Dubai Marina, and Downtown Dubai.

As part of Expo 2020, the Roads and Transport Authority is expanding the Dubai Metro, which will connect the Expo 2020 to the Red and Green Lines network, making mobility even easier for the residents there. In addition, the other key reasons for this project are backed by top-rated developers such as Emaar, Meydan and Dubai Properties.

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The development of Al Maktoum International Airport and Dubai’s plan to transform the Expo 2020 site into a post-event destination tourist will continue to attract a large number of visitors and residents to that area in the post-Expo 2020 period.

Analysts and market players noted that residential properties near Expo 2020 are garnering strong interest from end-users and investors due to strong rental returns, proximity to exhibition’s site, and more affordable rates.

According to Bayut, the studio apartments for sale in Dubai are South at Dh385,000, while 3-bedroom villas are at Dh1 million. In Meydan City, prices are predictably higher with a 3-bedroom villa going for an average of 3 million and studios averaging at Dh450,000. However, the premium amenities of the neighborhood, which include a golf course, equestrian center and mall easily justify the higher price tags, Bayut said.

“We can be optimistic about the area near Expo 2020 such as Dubai South, Meydan City, Town Square and Mudon in the next few years. This could be “You need to improve further when you have a wide range of properties,” said Haider Ali Khan, CEO of Bayut.

In the Legacy period of May 2021 to December 2031, the Expo site will be redeveloped to District 2020, which includes tenants companies and an expanded Dubai Exhibition Center (DEC). Over 80 per cent of the Expo – 2020, and eventually expanded into a city covering more than four million square meters.

According to the forecast, the legacy era will see Expo 2020 contributing Dh2.2 billion with contributions coming from event organization and business services at Dh54.2 billion, retail at Dh2.5 billion and restaurants and hotels at Dh2 billion. While around 548,300 full-time equivalent jobs will be created during May 2021 to December 2031, which will come to around 53,800 full-time equivalent jobs.

Fadi Nwilati, CEO, Kaizen Asset Management Services, said affordable housing is a definite trend that is prevalent in all of the Expo 2020 surrounding communities.

“Tenants also have good negotiation power in these areas, since the handover only increases in the latter part of 2019. We have success in sustainable cities in the past, and now Dubai South wants to position itself as a smart and sustainable city, “This is an area to attract a specific investor / tenant who doesn’t mind paying that higher price tag,” said Nwilati.

He said that the core fundamentals for end-users and investors would be location, developer reputation, finance options, and payment plans.

“The Expo 2020 has only been market-driven for these emerging districts. Areas like Meydan, Dubai South, Mudon and Town Square have created lots of investors / tenants of interest over the past 12 months. These projects have been built by world-class developers. like Emaar, Sobha, Meydan and Dubai Properties, and this only adds to the credibility of these projects, “Nwilati added.

He also came up with an extensive list of amenities which included equities centers, golf courses, malls, and schools, that they could charge that higher price tags. “These well-integrated communities have a surge of interest in the past year, and this will only increase in the coming months.”

Lewis Allsopp, CEO of Allsopp & Allsopp, believes that investors will be purchased for as lit.

 

Source : khaleejtimes.com

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