The building process in Dubai will stably continue during the following 2.5 years. Its aim is to construct facilities for Expo 2020 which is the major incentive for expanding this sphere.
According to BNC Network, this year as of the 31st of March the whole budget of main construction projects dedicated to the future Expo comprised 42.5 billion USD boosted by state and private sectors. It’s planned to complete most of these initiatives before 2020 because Expo will be held in October. The project will also provide many workplaces. The initiatives dedicated to Expo 2020 will form a new range of low buildings apart from towers that form a majority in the north of Dubai.
In 2017 3 billion USD were allotted for Expo 2020-related projects. According to BNC Network, this year as of the 31st of March the whole cost of the TOP-10 projects in process dedicated to Expo 2020 comprised 32.7 billion USD.
Avin Gidwani, the Chief Executive Officer of BNC Network claimed that Expo 2020-related initiatives provided wide opportunities for the construction sphere as it could have been judged from busy construction activities. This favourably influences the national economy, makes it stronger and stabilizes the consumption. Cranes and busy workers flooded the northern part of Dubai as it’s the future location of the village where Expo 2020 will be held. The completion of the project will unite the whole city around the International Airport named after Sheikh Al Maktoum.
Rizwan Sajan representing Danube Group claimed Expo 2020 would host visitors from all over the world who would arrive here for discussing their ideas, sharing innovative technologies and seeking for co-operation. Without doubt, this will power up the economy of the country. Besides that, the market of construction services will develop more rapidly as the Expo will boost the regional business activity and encourage the UAE to become the Middle Eastern start-up center.
Nimish Makvana, managing partner of Crowe Horwath claims that the building sphere shows a stable growth taking into account such tremendous directions for spending billions of dollars for creating new and improving the existing amenities.
He added that measures taken in anticipation of Expo 2020 shall boost the construction sphere of the emirate. Makvana gives an optimistic forecast for this sector while Dubai is preparing for the Expo in full spate. The next 2.5 years will provide opportunities for major players in the building sphere and construction companies so as allied spheres complying with the schedule of delivery.
According to the statistics of BNC Network, 17 billion dollars were allotted for amenities and transport, 13 billion dollars — on business and civil construction and 11 billion dollars — on hotels and theme parks.
According to them, the 1st stage of developing the Al Maktoum International Airport costs 8 billion USD, expansion of The Villages in the southern of Dubai — 6.8 billion USD, extension of Exhibition City — 6.5 billion USD and expansion of the Red Line of the local subway — 2.8 billion USD.
Imran Farooq, Chief Executive Officer of Samana Developers has mentioned that Expo 2020 would drastically change the construction sphere in the emirate and become a global trading platform not only for developers, but for all spheres: construction, hotels, travel industry, aviation and allied industries.
He added that the construction had been boosted by the increasing rush of tenant builders and their peers. They race to finish and deliver the result before 2020 otherwise the demand for their services will decrease. Expo improved the real estate sphere of the emirate as according to recent JLL data, nearly 575,000 new buildings will appear on the market by 2020.
Gidwani underlined that it would take approximately 2.5 years to prepare and finish big amenity projects.
He added that private tenant builders are financing sustainable construction and travelling industry projects.
Although these current developments may not concern the Expo 2020, but they help the country in other sphere.
To conclude, in November 2017 the total cost of 11,755 real estate initiatives in the emirate exceeded 816 trillion USD, according to BNC.
Gidwani added that projects and orders in the private sector would be persuaded by personal intentions of the companies, notwithstanding Expo 2020. Main tenant builders such as Dubai Properties, Danube Properties, Nakheel, Azizi, Damac, Deyaar and Emaar will further make their contribution into the regional economy not related to Expo 2020.