Expo 2020 Preparations Gather Pace
    Market AnalysisFebruary 3, 20173 min read

    Expo 2020 Preparations Gather Pace

    Construction on the Expo site and its infrastructure is accelerating. What is being built and which areas of the city could feel the effects.

    Chief Investment Strategist

    Former Goldman Sachs MD with 25 years in global real estate. James has advised sovereign wealth funds and ultra-high-net-worth families on $50B+ in transactions across MENA, Europe, and Asia.

    Share:

    Preparations for Expo 2020 are accelerating. Construction on the site near Jebel Ali is moving forward, the metro extension towards the site is under way and new roads and facilities are being built. With less than four years to go, the event is starting to shape the city's development.

    What is being built

    • The Expo site: pavilions, public spaces and permanent buildings.
    • Route 2020: the metro extension from the Red Line.
    • Roads: improved access from Sheikh Zayed and Emirates roads.
    • Hotels: new hospitality capacity across the city.

    Areas that could benefit

    Dubai South, Jumeirah Golf Estates, Discovery Gardens, Dubai Investments Park and communities along the metro extension may see increased interest as infrastructure improves.

    Legacy plans

    After the Expo, much of the site is planned to be reused as a mixed-use district, which could support long-term demand in the area.

    Considerations for investors

    Investors should focus on projects that make sense beyond the Expo, with long-term demand from residents and businesses.

    Risks

    New supply in the south of the city could be significant. Investors should be selective about location and developer.

    Rental demand during construction

    Large construction projects create temporary housing demand. Engineers, project managers and specialist contractors working on the Expo site and its infrastructure need homes within a reasonable commute. Some are housed by their employers, but many rent apartments and villas in nearby communities. This can support rents in areas such as Discovery Gardens, Dubai Investments Park and Jumeirah Golf Estates during the construction period. Investors should be careful not to assume this demand will last indefinitely, since some workers will leave once projects are completed. Long-term demand will depend on the jobs created after the Expo, including those in District 2020 and the surrounding logistics and aviation hubs.

    Our view

    Expo preparations are a major source of investment in Dubai. We help clients assess opportunities in the areas most likely to benefit over the long term.

    Expo 2020InfrastructureDubai South