By Staff writer
New report says developments will create 60% rise in jobs in real estate sector over next five years
Dubai will complete an estimated AED301 billion ($82 billion) worth of projects in the areas of housing, entertainment and infrastructure by 2020, a new report has said.
These large scale developments will create immediate demand in the work force, reducing the current occupancy rates of housing stock, said Reidin's report entitled Dubai: Tomorrowland.
"We extrapolate that the number of jobs created in the real estate sector will rise by approximately 60 percent in the next five years," Reidin said.
The construction boom comes as Dubai prepares to host the prestigious World Expo event in 2020. At its peak, the Dubai Expo 2020 exhibition site at Dubai Trade Centre-Jebel Ali is designed to accommodate up to 300,000 visitors, with average week-day attendance expected at 153,000.
Running October 2020 through April 2021, the Expo will launch the country’s Golden Jubilee celebration and serve as a springboard from which to inaugurate a progressive and sustainable vision for the coming decades.
"We opine that as these jobs are created, there will be a mismatch between the sectors where the jobs are created (predominantly at the mid end) compared to the topography of the real estate, which is skewed towards the higher end," it added.
The report said that given the large supply pipeline of these large scale projects, and the demand-supply mismatch, it is likely that prices in the mid end of the market will remain relatively firm as upward pressure is created.
It added that private sector developers are likely to respond by skewing supply dynamics towards this sector, a trend that is already underway.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.