Emaar Properties has signed the deal with Dubai World Central to develop a residential project where Expo 2020 will take place. The new development will be built on an area of 13.63 million square metres.
Dubai Expo 2020: Homes, hotels, golf course and mall deal for Burj Khalifa developer
The new development will be built on an area of 13.63 million square metres, Emaar said.
The first phase of the Dubai project will include a villa community by a golf course, several hotels and a mall, the developer added.
“[Expo is] expected to welcome more than 25 million visitors during the six months’ period. It is important that the city further builds its retail, hospitality and residential facilities to meet the anticipated demand,” said Mohamed Alabbar, the chairman of Emaar.
Jones Lang LaSalle said in a report that the Expo 2020 win would likely be a catalyst to Al Maktoum International Airport, which started its passenger services in October.
A Metro extension to the Red Line, an increased conference space, as well as developments to the logistics hub in the area are all long-term benefits to hosting Expo 2020, the report added.
Dubai’s economy is also expected to be given a huge boost over the next seven years, as Expo 2020 is expected to add 2 per cent to its GDP as well as creating 277,000 jobs.
However, analysts warned of excessive price growth or over-development in the short term, which could lead to a bubble.
In October, Emaar reported a 50 per cent rise in third-quarter profits helped by more than six million visitors to The Dubai Mall every month. Its net income rose to Dh581 million from Dh387m a year earlier.
Shares of Emaar yesterday closed up 0.14 per cent after reaching a 52-week high of Dh7.04.