Dubai unveiled its most recent megaproject: A scene in the heart of a super luxe shopping and dining area Last week.

The arena, which will host sports events and concerts, is situated in a leisure retail and residential location called is new and was created by Meraas, a company owned by Dubai ruler Sheikh Mohammed bin Rashid Al 46, City Walk, that.

It is just one at a pipeline of tasks that the emirate is churning out in the lead-up to the next year’s World Expo despite concerns and the economic downturn that an oversupply is weighing down real estate prices.

“Property is a cyclical business and we are in a period of a soft economy,” explained Craig Plumb, head of research in the Middle East for JLL, a property and investment management company. He noticed that retail rents are falling by being more elastic because they’re responding.

The major developers of dubai, like houses with glass chambers submerged off the shore of the emirate, have plans for cities, parks, parks, skyscrapers and fantastical concepts like Meraas, Emaar and Nakheel.

The projects reflect the aspirations to develop as a tourism destination and heart of Dubai, but current requirement is being outstripped by the absolute scale of these developments.

Because oil prices started their slide already, real estate deals across the United Arab Emirates have dropped. A boost in oil prices last year seemed to have little impact on Dubai’s bellwether estate marketplace.

Real estate prices in Downtown Dubai dropped this past year, according to a report by property agent Savills. Challenges enclosing a demand and supply mismatch are expected to last through the calendar year, the report said.

Statistics released this week from Dubai’s government demonstrate that gross national product grew by 1.9percent last year, a constant decrease year-on-year since 2014 when growth clocked in at 4.6%.

Regardless of the economic slowdown, Dubai programmers that are major reveal no signs of slowing their sprawling jobs ahead of next year’s Expo.

Nearly units in Dubai have been completed according to JLL.

Dubai forecasts that the six-month-long World Fair, which runs to April 2021 from October 2020, will bring 25 million visits, even though it is uncertain how many of those will be traffic from Dubai.

An analysis by Ernst & Young prediction that Expo 2020 will contribute around $6 billion into the economy of the UAE during the period of the average. That amount is mainly drawn from government information and EY said that it hadn’t been able to establish the trustworthiness of the sources it utilized had it verified. The Expo organizers of Dubai commissioned the report.

Regardless of the construction bonanza heading into expectations it will be a boon for the market and the Expo, subcontractors are thinking about delays in obligations rippling through distribution chains in industries like the real estate industry.

In a report issued last month, major bank Emirates NBD additionally discovered that staff had cut on on amid the weaker growth at their sharpest rate in a decade — either through firing or even a freeze .

Foreigners form most the UAE’s population, but they are finding it tough to keep up with the rising costs of living in Dubai along with neighboring emirates such as Abu Dhabi and Sharjah. To alleviate surging school prices, schools were prohibited by Dubai this past year from increasing their costs.

Families also make the daily commute for a job and live in Sharjah, After the cost of living becomes much too high for households in Dubai. Even that has come to be too costly.

“Families are moving away,” said Balaskandan Raghunathan, managing director of a technology consultancy which operates round the UAE.

He said he knows of Indian families who’ve left Dubai because school prices were high and there was job safety.

“They have to find a formulation for households. The household must be here. Population growth is not sufficient,” he explained.