Expo 2020 fever sweeps Dubai residential market

Well-integrated neighbourhoods close to event site offer high rental yields

The Future Museum in Dubai as of September 2018. Ioan Panaite/Shutterstock

Off-plan residential projects near the Expo 2020 venue are fueling interest among residential property seekers and renters, according to Bayut.

Dubai South, Meydan City, Mudon and Town Square are rising in popularity among prospective home buyers and tenants, Arabian Business reported, citing searches conducted on the real estate portal.

“We can be optimistic about the growth of areas near EXPO 2020 such as Dubai South, Meydan City, Town Square and Mudon in the next few years,” said Haider Ali Khan, CEO of Bayut.

“They are well-integrated neighbourhoods which already offer a high ROI to investors. This could improve further when more handovers are completed and tenants have a wider portfolio of properties to choose from.”

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Major developers such as Emaar, Meydan, Sobha, Dubai Properties and Nshama have already backed projects in the foregoing areas, “definitely” boosting interest in the area, he added.

Dubai South is estimated to offer rental yields of more than 11 percent, offering investors some of the best options in recouping their property investment capital, Bayut research showed.

Dubai South and the emerging district of Meydan abound with affordable residential units, with studio apartments in the former fetching an average price of AED385,000 (USD104,800) and three-bedroom villas asking AED1 million.

Studios in Meydan commonly average around AED450,000 while three-bedroom villas are priced at an average of AED3.3 million.