Impact of FIFA World Cup on Dubai’s Property Market

The commencement of the Qatar World Cup 2022 has boosted enthusiasm in homes, offices, restaurants, and bars. The tournament started on November 20, 2022, with the finale on December 18, 2022. People are flying in from all over the world to witness the Qatar World Cup. Due to overwhelming bookings in Qatar, many travellers have parked their suitcases in Dubai. For some, the reason is more than the FIFA World Cup. Even though Qatar is organising the World Cup, Dubai will reap the rewards. 

Dubai is the fourth most-visited city in the world. According to a report, Dubai already has 15.8 million international visitors, breaking several tourism records in 2022. Most people have added a Dubai vacation to their itinerary as they travel to Qatar for the World Cup. With 1.5 million fans attending the World Cup and the unavailability of accommodations in Qatar, Dubai will be the next preferred destination. Dubai is the go-to destination for luxury vacations. Some Qatar World Cup crowds are looking for luxury hotels with amenities. The rest of them are looking for rental apartments for a short period of time. Experts have estimated a rise in investment in luxury properties in Dubai with the onset of the Qatar World Cup. 

Why Do People Come to Dubai for Qatar World Cup 2022? 

Since Dubai is just an hour and 10 minutes away from Qatar via flight, fans prefer Dubai as the ultimate destination. Football enthusiasts are opting for Air Arabia, Qatar Airways, and Flydubai to fly to Qatar for the matches and return to Dubai on the same day. People who like to make their travels luxurious are choosing high-end hotels and bed and breakfast accommodations. With the FIFA World Cup going on next door, international travellers are ticking Dubai off their travel lists. Ardent football fans would already have locked down their post-World Cup 2022 plans to catch their favourite players vacationing in Dubai.

Many footballers will be celebrating the New Year in Dubai. The fans of these football icons are trying to find accommodations in resorts and hotels preferred by their idols following the Qatar World Cup. Dubai is an attractive destination for investments for high-net-worth individuals. The apartments in the elegant high-rise buildings are selling and renting out fast, especially during the World Cup in 2022. 

Dubai – A Major Tourism Hub 

Dubai has so much to offer. Whether it is the desert, white sand beaches, the Burj Khalifa, or the Palm Jumeirah, the list is endless. Dubai has welcomed tourists since October 2021 for Expo 2020. With Qatar hosting the World Cup in 2022, Dubai has prepared itself for more tourists this year. It is a one-stop destination for accommodation seekers due to its second-highest number of 5-star hotels.

Tourists are also choosing Dubai to get away from the restrictions listed by the Qatari government. They have issued strict guidelines regarding the consumption of alcohol and meat and the dress code, to name a few. Due to these reasons, tourists are avoiding Qatar altogether. Comparatively, Dubai is a liberal city. The FIFA Cup is the world’s most beloved sports tournament. Naturally, the fans would treat it as a festival celebrating the end of a quadrennial. Therefore, the fans favour Dubai instead of Qatar. It is the best city to enjoy the sport alongside the opulence and nightlife the city has to offer. 

How is Dubai Preparing for The 2022 FIFA World Cup, Qatar? 

Since January, hotel prices have increased by 43%. Many homeowners in Dubai are renting their homes for a shorter period rather than renting them out on an annual basis. During Expo 2020, short-term rental services proved to be a great success. Since then, the asset holders have been preparing for the influx of tourists and following suit by renting out apartments for a short time to the tourists.

This trend is being continued for the tourists in Dubai for the Qatar World Cup 2022. Apart from this, many foreigners, after experiencing what Dubai has to offer, want to move here. Several project management firms in Dubai are providing exclusive deals wherein the customer can stay at a 5-star hotel. The hotel is working with an airline that takes travellers on shuttle tickets to Qatar and brings them back to Dubai. 

Dubai Rental Market is Up By 27.3%

Many of these travellers, especially high-net-worth individuals, are planning to rent or buy properties in Dubai. According to recent research, real estate rents in Dubai will rise by 27.3% in 2022 due to increased demand for properties. Major real estate developers in Dubai are introducing new projects and developing existing ones rapidly, which in turn is creating demand in the market. Most of these properties are sold even before the project is completed. Dubai’s freehold areas are golden eggs, drawing foreign investors into the country. 

The extravaganza of the Dubai lifestyle instantly sells. The elite properties attract foreigners like a moth to a flame. The trends show that they invest in apartments and villas that could be turned into vacation homes for themselves and short-term apartment rentals when they are not using them. The cost of renting a villa is up by 25.7%, and the cost of renting an apartment has risen by 27.5%. This change has caused the existing renters to move away from the city. But, the demand for properties is still high.

Dubai Real Estate Sales Market 

Experts predict that a large number of high-income individuals will relocate to the UAE in search of better job opportunities. Dubai is one of the wealthiest and most liberal cities in the Middle East and Africa. It is also safe. These characteristics attract wealthy foreigners to invest in Dubai. 

There has been a significant increase in the number of real estate projects in Dubai. From the first quarter of 2022 until the third quarter, apartment sales have shot up, and villa purchases have doubled. However, there are no sales in terms of office space. The developers are focusing on meeting the demands of those with purchasing power. There are numerous high-rise luxury apartments, penthouses, villas, and hotels under construction. Many local real estate developers are utilising the Golden Visa offered by the UAE to entice foreigners to move into the country. The availability of the visa and moving to the UAE would cause the immigrants to rent or buy new properties in Dubai. 

In a Nutshell

Dubai will benefit from the influx of FIFA enthusiasts and winter tourism. The food and beverage, luxury products, and real estate industries are prospering. The demand for luxury apartments is greater than the available properties. In order to meet the demands of foreigners, Dubai’s leading real estate developers are introducing new projects. Few companies have set base prices for the purchase of properties that would qualify the buyer for the Golden Visa for the UAE. This offer is too good for high-net-worth football fans to pass up. Dubai is speeding to become one of the ‘best cities to live in’ in competition with cities like Miami, Los Angeles, and London. 

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