The “fear” of a new property boom on the back of speculations in Dubai is growing as each day passes. This is why the emirate’s administration takes measures against tht. Last month, for example, the Dubai Land Department (DLD) increased registration fees for property transactions. As a result, now they amount not to 2%, but to 4% of the value of the property. However, it seems that this did not really manage to balance the Dubai property market at least as of now. The main factor for most of the market participants is “Expo 2020.”
If Dubai wins the bid to host Expo 2020, this will definitely lead to a rise on the property values in the city, although not in the short term, but rather when the event comes closer. However, a success for Dubai in the World Expo 2020 will affect positively the entire economy.
One clear sign that the Expo 2020 buzz will change the real estate sector in the emirate is the increasing number of requests for mortgage valuation. They are now reaching sky-high proportions. If Dubai gets to host Expo 2020, they will go even higher. One mortgage valuator from an international company told DubaiChronicle.com that he has between 5 to 8 appointments per day, and his ten colleagues are working at the same pace.
The Expo 2020 anticipation is seen across the market in the city, but not only this fall. The hype started about six months ago and early adopters already benefited from the fast spreading bullish news.
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In October, many property developers announced new projects at Cityscape. However, they put off the selling of the properties for about eight weeks, because they hope to generate higher profits then. Although the results from the Expo 2020 bid are yet to be announced on November 27th, sellers are pushing prices higher and higher. One may think, now it is the right time to sell.
It is true that if Dubai wins, property prices in the emirate will continue to rise. That is because the city will start working on many projects which will offer many improvements in infrastructure and facilities. For instance, some of them will concern the transport infrastructure in Dubai. This will lead to an influx of workers to the emirate, but not necessarily high paid workers who will easily qualify for new mortgages. Shortly after that, property demand in the city will increase and most of the currently unoccupied properties will be likely rented on a faster pace.
The current situation is quite strange for some, and people who live since long time in the UAE even comment on the Dubai Eye 103.8 and write blogs to express their opinions.
Businessmen are eagerly awaiting the result, which will be announced next month. It will be good for them if more money flow in the economy.
Property owners in Dubai resemble characters from the Jack London’s Klondike goldrush adventure. They want to get rich in no time. Nowadays landlords generally follow two strategies. Some of them do nothing and simply wait, while others constantly increase the prices for their properties. Most people hope to get rich in no time and some already did during the past one and half year.
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Given the circumstances, real estate agents are left with a little choice, but to pause sales and wait for November 27th together with everyone else in Dubai.
