Expo 2020 is happening in about two years in Dubai opening on October 20, 2020. Dubai expects to welcome 25 million visitors between October 20, 2020, and April 10, 2021, 70% of which will be international participants in the grand event.
According to Propertyfinder, there will be an approx. 180,000 properties available in the coming years, up until 2020. Also, there has been an oversupply in the property market, and prices have been going down. According to data collected, a little more than 21,000 units were handed over in Dubai in 2017, and more than 10,400 units have been handed over so far this year.
“There are 40,000 units scheduled to be completed by the end of 2018. However, the materialization rate (the number that will actually occupy them) will be much less, probably around 15% to 20%, which has been the consistent rate over the last few years.
“There are more than 70,000 units scheduled to be completed in 2019 and 35,000 units scheduled to be completed in 2020,” Lynnette Abad, Director of Research and Data at Propertyfinder, told Khaleej Times.
During the Expo 2020, Dubai will be home to approx. 20 million visitors who would prefer to stay in Dubai for business, event purposes, tourism and/or employment reasons for a time period of whole six months. There will be a plenty room available than what is available now when residents of Dubai will open their doors to this traffic.
The hospitality sector has been booming since the news was out that Dubai is going to host Expo 2020. According to the local reports, Dubai’s hotel inventory stood at 107,431 rooms at the end of 2017. It is estimated that in 2020 there will be approx. 150,000 rooms in Dubai for the visitors.
According to Colliers International’s forecast, “There will be a five-year compound annual growth rate (CAGR) for hotel supply, which is expected to increase by 10% in the UAE.”
“The analyst community had over-blown the fears of an oversupply by speculating that in 2017 and 2018, close to 100,000 units would have entered the market. From 2017 to date, a total of 39,197 units have been realized, which is only 40% of the expected supply. We expect that a similar realization rate of supply is going ahead,” says Hussain Alladin, Head of IR and Research, Global Capital Partners.