Here’s why Dubai property values should finally rise in 2018
Expo 2020 and a new tax system will be a shot of confidence to the real estate market
A new report by Cluttons projects Dubai property values to show their first growth in three years in 2018, thanks largely to the “Expo 2020 effect” and the United Arab Emirates’ new tax system.
Expo 2020, the upcoming World Fair showcasing art and culture will be held in Dubai between November 2020 and May 2021, is projected to bring in 25 million tourists, according to the Wall Street Journal. Expo 2020 will mark the first time the international event is held in the Middle East and the first major global event in the region in recent history; the fair is also spurring growth in the real estate market.
“We expect it (Expo 2020) to drive up the rate of job creation and tenant demand, but this is not expected for another one to two quarters at least,” Murray Strang, the head of Cluttons Dubai, wrote in the report, according to the Journal.
The “Expo 2020 effect” dovetails with the introduction of country-wide tax system. Cluttons’ head of research Faisal Durrani told Gulf News that the new VAT will may result in better payment plans for buyers of Dubai real estate.
Durrani cited the stablization of oil prices and Dubai’s goal of doubling its population as necessary for the market’s long-term growth. For the rest of 2017, Dubai’s property values are estimated to dip between 4 to 5 percent.