I went to a great entrepreneurs leadership talk this week. The topic was “Emerging opportunities for businesses in the UAE and the opportunities and hazards of the EXPO 2020 announcement.” Appropriate for the real estate market as I think since the BIG announcement, Dubai real estate prices are either A.) In a holding pattern or B.) On the rise.
With every conference and talk I attend I like to leave with a message, this is how I qualify it if whether or not it was a waste of time. This one was a good one…as the message was heard loud and clear.
2020 is seven years from today. So why are real estate prices in the UAE already going up? Speculation. How did that work out for us last time? Or is it really hopeful people think this time around they are not going to get caught up in the bubble. Personally, I don’t believe in the whole Dubai Bubble thing anyway. Miami had not just a bubble but also a massive blister and the whole world isn’t talking about Miami or blaming the United States for it. So why is the UAE getting such a bad rap? But that’s my personal opinion.
Back to 2020 and the message. Things really aren’t going to get starting to move or build or take off until 2016 according to our speaker. So what can we do now for the next two years?
PREPARE! That word hit me hard. PREPARE for what? Well, for 2020, basically people and their needs. Including a huge need to fill jobs. Some say there will be lots of hires. Estimates are floating around the market that as many as 30-40 percent for professionals. So how does that relate to real estate?
People in the UAE need a visa to work. Once they get a visa they need a place to live. SO unlike Europe or America. People here are not jobless. Not because they don’t want a job or cannot find a job but simply according to the law they cannot live here without a job. So that is where real estate comes in. Those 30-40 percent of professional people need a place to live and operate their business. SO commercially things will go up to. In addition to that many professionals will be with their families, so schooling and basic living needs will be required. All back to real estate. SO the message here is prepare. If you are a buyer prepare for prices to rise…it’s simple supply and demand. If you are a seller: prepare your house to sell. Fix up things that need fixing and remember curb appeal adds value! On the commercial side: all these new businesses are going to need a location. 2020 is only seven years away so Dubai let’s get ready!