When expo 2020 dubsai ended, many assumed it would be short-lived. In reality, instead of disappearing, the area was transformed from a world event to an ongoing source of growth for the city of dubai. The expo grounds were transformed into district 2020, along with several other projects in the surrounding areas. The impact can be seen today, as changes in local investment, pricing, and property demand have been influenced by the ripples of this one global event.
How Expo Legacy Developments Are Transforming Dubai Property
Dubai’s legacy expo projects were always about creating a lasting foundation in terms of both physical infrastructure for the local population as well as an attractive business environment that would provide stability to those who choose to call it home. The underlying strategy was to continue to shape Dubai’s property market with new locations where people could live, work, and make long-term investments.
Infrastructure Expansion and Accessibility
One of the most powerful factors contributing to rising dubai residential property values — largely due to the legacy of expo — is the development of infrastructure.
A great example of this is the expansion of Route 2020 on the Dubai Metro. Prior to its construction, many communities previously perceived as being at the periphery of dubai city center are now accessible directly to key business centers.
Improved access has attracted new residents and investors alike to formerly under-recognized or distant neighborhoods. An excellent example of improved accessibility attracting new interest can be observed in dubai south with it’s improved connectivity to cargo/industrial zones, al maktoum international airport, and what will become known as the former EXPO site. Improvements in transportation options (road network improvements) continue to improve travel time to/from other regions within dubai — thus improving the viability of dubai south and similar “edge cities” for longer term living.
Business Ecosystems and Job Creation
Expo Legacy Developments were intended to be multi-industry (tech, sustainability, logistics, innovation) hubs for attracting a diverse group of employers. District 2020 was branded as an expo city and business hub for encouraging both start-ups and multinationals.
The exponential growth of businesses will have a significant effect on dubai property demand. Employees who work in the area want to live close to their jobs, which creates high occupancy levels in neighboring communities; thus, increased rental yields and decreased vacancy risk.
As an example of this trend can be illustrated with the development of mixed-use properties located near Expo City. The residential component of these projects are not simply speculative investments; they provide housing for employees attracted by proximity to their workplaces and amenities. The functional demand created by employee preferences add credibility to the long term viability of dubai property performance when compared to areas driven solely by short-term trends.
Lifestyle Communities and Urban Planning
Another way that Expo legacy projects can differ from other new residential developments in Dubai is through their focus on lifestyle. The Expo Legacy Projects provide for an emphasis on walking, green space, and community amenities, all of which reflect current trends in global urban development. These projects are planned as sustainable communities that will meet the needs of residents within them and not require reliance upon shopping or entertainment located far away at traditional city center locations.
When evaluating a purchase or rental opportunity, consumers may evaluate the total living experience beyond the cost of the property. The access to local parks, retail centers, co-workspaces, etc., and also access to cultural experiences create additional long-term value in each location. As a result, many of the cities, towns, villages, neighborhoods and communities built using the design principles of the Expo Legacy Projects tend to attract families with children, young professional adults and remote workers. With such a diverse group of potential buyers/tenants there is greater long term stability in Dubai real estate in those same areas.
Long-Term Investment Outlook
Beginning in terms of investments, expo-legacy developments in dubai property have changed investor’s views on evaluating dubai properties. Investor focus has transitioned away from “prime” established neighborhoods to developing (emerging) zones that possess significant future development potential.
Newer investors typically view various indicators to assess opportunities. These indicators include; infrastructure readiness, government backed development plans, and commercial activities. Expo-based locations meet each of the above criteria. Additionally, they are developed as part of long term plans vs. individual development projects.
Additionally, Dubai South is continuing to develop into a logistics/aviation hub. Dubai South has been further enhanced by its association with Expo city. Early entry investors into the new market will be able to take advantage of the rental income generated by their real estate holdings while experiencing capital appreciation as the area develops.
In addition, the stable nature of these developments will attract more conservative or risk adverse investors. These investors view expo based developments as lower risk alternatives when compared to other dubai property developments.
Insights from the Experts
We assess throughKeyspace Realty and Keyspace Dubai the effects of Expo Legacy Developments on the property in Dubai at a variety of levels, including infrastructure, rental demand, and long term capital growth. Using a methodology that focuses on determining what
existing neighborhoods will be positively impacted by this transformation as compared to other more established residential or commercial areas. With a combination of on-the-ground intelligence, transactional data and future development strategies, our research assists investment decision makers in understanding where value creation is occurring, and how best to invest strategically as Dubai’s real estate market evolves.
Market Behavior and Price Stability
One of the less noticeable impacts that Expo legacy project have on the price of real estate are long-term improvements in price stability. As opposed to short-term prices that spike due to speculative activity, Legacy Developments will produce sustainable demand.
Once local businesses are established and residents begin working in nearby job centers, it will be easier for the housing market to balance itself out. The reduction in extremes and the consistency of price growth provide a stable environment which is beneficial to the long-term investor. This allows the long-term investor to better plan their exit strategies, to make investments or to diversify their portfolios with better confidence. Furthermore, it provides lending institutions with better predictability in regards to the sustainability of an investment.
The Role of Sustainability and Innovation
Dubai’s Expo 2020 had sustainable principles as a focus point and those same principles continue to be a focal point for the legacy projects of expo city. Many of the new buildings being built in and around Expo City will have energy efficient building materials; they will have “smart” technology integrated into them; and their design will be “eco-friendly”.
The purpose behind using such elements is not simply an advertisement for how green the project is. Such features do however provide direction and guidance to potential buyers about what types of features or attributes of a particular development are desired by today’s homebuyers. Furthermore, as there becomes more world-wide interest and awareness regarding sustainability, it would appear that the homes or condominiums or apartments (collectively referred to herein as “properties”) which meet certain minimum requirements for being classified as sustainable properties will become more desirable from a demand perspective.
As a result, for Dubai-based property investors, the trend towards sustainable properties also provides a basis for increasing the overall value of each property investment. Sustainable trends and properties are inherently less likely to go out of favor over time thus lowering the risk of becoming obsolete.
A Shift in Dubai’s Property Map
The most significant conclusion regarding the Expo legacy projects’ impact on Dubai’s real estate landscape relates to the shift of Dubai’s property map from being solely based upon traditional “hot spots”. The city now has new corridors which support their development through a combination of infrastructure, business activities and lifestyle amenities. As such, this new trend toward de-centralization provides more options for buyers. Rather than having to choose among a handful of premium neighborhoods or developments (which may be priced out-of-reach) buyers can now also consider other options that could provide better value, greater long-term appreciation and a better quality of life.
Frequently Asked Questions
What are Expo legacy projects in Dubai?
The expo legacy projects refer to all of the developments that have been established since Expo 2020 and include the Expo City dubai (formerly known as district 2020), various other upgrades to the existing infrastructure and new residential and commercial communities around the expo.
How do Expo legacy projects affect dubai property values?
The legacy developments create greater demand in this area by upgrading the local infrastructure, increasing the number of businesses operating in the area and providing new residential options thereby supporting both future price growth and rental yield.
Is investing near Expo City a good idea?
There is great long-term potential for investment in locations close to expo city because of the continued large-scale development in the area, increased business activity and improved accessibility.
Which areas benefit the most from Expo legacy developments?
Some of the primary areas that will be impacted positively by the expo legacy developments will be those located at dubai south, and other neighboring communities as they are directly related to both the expo city development project and the larger scale of development in the area.
NOTE: Pictures used in the advertisement are for illustration purposes only.
