A mixture of buyers from investors to first-time home owners have booked apartments that will be built overlooking Expo City Dubai attractions.
Properties went on sale on Wednesday, with families showing up at the newly opened sales centre asking for more information about residences to be completed in January 2026.
Existing infrastructure built for Expo 2020, such as the metro station, as well as payment plan options for apartments starting at Dh1.2 million ($330,000) have attracted investors.
For Jayant Gupta, a commodities trader, buying a one-bedroom apartment was a “no-brainer” due to the road and Metro connectivity.
This is how I see the future of all cities, not just Dubai. It’s the beginning of something new
Shayla Chari,
prospective buyer
Mr Gupta moved from Singapore to the UAE seven months ago and has invested in town houses and apartments in three other Dubai developments.
He said the option to pay the final 50 per cent over 16 months after handover were attractive.
“Being a seasoned investor, I invest in multiple properties and having a flexible payment plan allows me to invest in more projects. So I can keep my cash safe with me and find more projects to invest in,” said Mr Gupta, who spent less than two hours finalising the purchase of a one-bedroom apartment.
Having lived in Singapore for eight years, Mr Gupta now lives with his family in Dubai.
He had never been to the Expo site before Wednesday and was upbeat about growth in the surrounding area.
“Expo is a brand I know because all Emirates planes had Expo 2020 written across,” he said.
“The Jebel Ali area is developing at a fast pace, the port has always been a success and there is a Jafza [Jebel Ali Free Zone] extension coming up so a lot of corporates will be coming here.
“Location-wise this is a good spot.”
He said investing in Dubai made sense due to a “welcoming environment” where people from different nationalities had made the UAE their home.
The planned new community in Dubai South capitalises on an exceptional property boom in the emirate.
Several off-plan developments, when homes are sold before construction, have been introduced over the past year.
Dubai has experienced record growth with the value of property deals reaching a high of Dh528 billion early this year.
The number of investors has risen by 53 per cent compared to 2021.
Promise of a green home
For first-time buyers, the promise of sustainable housing, pedestrianised zones in a ‘city of tomorrow’ is the draw.
Expo City Dubai is being developed as the country’s first 15-minute city where amenities, attractions and transport will be a quick walk or jog away with dedicated cycle tracks and bike paths.
Shayla Chari, a finance professional, hopes to buy a two-bedroom apartment.
“I love how conscious they are about the environment,” she said.
“This is how I see the future of all cities, not just Dubai. It’s the beginning of something new, where we will learn to value nature and consciously think of the role greenery plays on us mentally and emotionally.”
As an Expo fan, Ms Chari and her family often visit the site.
With more people coming into the country due to new visa rules, Ms Chari believes the demand for property will continue.
“There is an inclination of people to stay here post-retirement,” she said.
“It has become a central city for all nationalities.
“I’m keeping my options open. I’m looking at something I can stay in case I can’t rent it out.”
A showpiece the world knows
Brokers and residents said it was likely apartments would be booked quicker than the villas due to the higher entry point of Dh3.4 for three-bedroom homes at the new Expo Valley compared to lower-priced villas in developments nearby.
But unique offerings such as a wadi and a forest area was the Expo lure.
Vikram Jakhar, a real estate adviser with Upstream Properties, has two clients from overseas who have booked apartments.
Among potential buyers were those with investments in Dubai, consider the UAE their second home and already have property they rent out.
“There is interest among the English, German and French investors overseas because this is not something you can compare to Dubai’s other communities,” he said.
“This was first created as a showpiece for the world and people were mesmerised by what they saw.
“Now they hear of walking around in green zones, no cars on roads and the wadi bringing nature closer to you.
“This place is in its own category also because of the events planned, fan zones, the concert areas.
“It will be a trendy place that people want for the buzz it generates.”
Despite good road connectivity, the remote location is often seen as a disadvantage as most residents prefer to live near their workplace.
Mr Jakhar said he asks hesitant clients to visit the area to make up their mind.
“Many residents prefer to live in well-established communities as they work around that area,” he said.
“This city is not being built to bring people from exiting areas here.
“This will also draw people who have yet to come to Dubai.
“New people are moving into Dubai with companies opening up offices here.
‘I tell them, ‘You need to have a vision, you need to believe in this place, come, see it before you decide.'”
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
World Series
Game 1: Red Sox 8, Dodgers 4
Game 2: Red Sox 4, Dodgers 2
Game 3: Saturday (UAE)
* if needed
Game 4: Sunday
Game 5: Monday
Game 6: Wednesday
Game 7: Thursday
Company%20profile
%3Cp%3E%3Cstrong%3ECompany%3A%20%3C%2Fstrong%3EWafeq%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJanuary%202019%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3ENadim%20Alameddine%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%2C%20UAE%3Cstrong%3E%3Cbr%3EIndustry%3A%20%3C%2Fstrong%3Esoftware%20as%20a%20service%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%20%3C%2Fstrong%3E%243%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3ERaed%20Ventures%20and%20Wamda%2C%20among%20others%3C%2Fp%3E%0A
What is an FTO Designation?
FTO designations impose immigration restrictions on members of the organisation simply by virtue of their membership and triggers a criminal prohibition on knowingly providing material support or resources to the designated organisation as well as asset freezes.
It is a crime for a person in the United States or subject to the jurisdiction of the United States to knowingly provide “material support or resources” to or receive military-type training from or on behalf of a designated FTO.
Representatives and members of a designated FTO, if they are aliens, are inadmissible to and, in certain circumstances removable from, the United States.
Except as authorised by the Secretary of the Treasury, any US financial institution that becomes aware that it has possession of or control over funds in which an FTO or its agent has an interest must retain possession of or control over the funds and report the funds to the Treasury Department.
Source: US Department of State
Your rights as an employee
The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.
The new measures passed by the Cabinet in 2016 were an update to the Wage Protection System, which is in place to track whether a company pays its employees on time or not.
If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.
Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.
The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.
The%20specs%20
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%204cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E261hp%20at%205%2C500rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E400Nm%20at%201%2C750-4%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E7-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E10.5L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C999%20(VX%20Luxury)%3B%20from%20Dh149%2C999%20(VX%20Black%20Gold)%3C%2Fp%3E%0A
NBA Finals results
Game 1: Warriors 124, Cavaliers 114
Game 2: Warriors 122, Cavaliers 103
Game 3: Cavaliers 102, Warriors 110
Game 4: In Cleveland, Sunday (Monday morning UAE)
The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
Five personal finance podcasts from The National
To help you get started, tune into these Pocketful of Dirham episodes
·
Balance is essential to happiness, health and wealth
·
What is a portfolio stress test?
·
What are NFTs and why are auction houses interested?
·
How gamers are getting rich by earning cryptocurrencies
·
Should you buy or rent a home in the UAE?
LAST-16 FIXTURES
Sunday, January 20
3pm: Jordan v Vietnam at Al Maktoum Stadium, Dubai
6pm: Thailand v China at Hazza bin Zayed Stadium, Al Ain
9pm: Iran v Oman at Mohamed bin Zayed Stadium, Abu Dhabi
Monday, January 21
3pm: Japan v Saudi Arabia at Sharjah Stadium
6pm: Australia v Uzbekistan at Khalifa bin Zayed Stadium, Al Ain
9pm: UAE v Kyrgyzstan at Zayed Sports City Stadium, Abu Dhabi
Tuesday, January 22
5pm: South Korea v Bahrain at Rashid Stadium, Dubai
8pm: Qatar v Iraq at Al Nahyan Stadium, Abu Dhabi
