Dubai’s Emaar Properties inks deal for 1st project at Expo site

DUBAI - Reuters

People celebrate after Dubai won the right to host the 2020 World Expo, in front of the Burj Khalifa last November. REUTERS photo

Dubai’s largest property developer, Emaar Properties, announced Dec. 12 a joint venture project with Dubai World Central (DWC) to build hotels, malls and golf course communities close to the emirate’s 2020 World Expo site.

The project is the first development plans announced after Dubai won the rights in November to host the 2020 World Expo, beating competition from the Brazilian city of Sao Paulo, Yekaterinburg in Russia and Izmir in Turkey in a vote by members of the world fair body. Emaar did not specify the value or financing plans for the project.

The project will be jointly developed by DWC, which is the logistics complex where the Expo site will be built, and Emaar, the firms announced in a joint statement.

Housing bubble risk

Spread over 13.63 million square meters, the project’s first phase will include a golf course villa community, several hotels, a high-end shopping mall, leisure attractions and a business hub.

The master plan for the joint venture project is currently being finalized, the statement added.

The Dubai government expects the World Expo win to boost trade and tourism in the emirate and boost business.

However, some developers and analysts have warned that it could trigger another real estate bubble similar to the one that burst in 2008-2010, when the global financial crisis caused Dubai property prices to crash by more than 50 percent.