Dubai: The new ‘mini-city’ that will be created to host Expo 2020 already has its own airport — the Dubai World Central. The many other pieces of the development gameplan will soon be taking form.

“Projects such as the construction of the Dubai Metro Purple Line and the work in and around the Dubai World Central — the actual site of the expo — are likely to be expedited,” said Mat Green, head of research and consultancy UAE, CBRE M. E. “The new airport would also witness significant development activities, fast-tracking its use as a passenger hub and becoming a catalyst to development of the air transport infrastructure — a key driver for the sustained economic growth of the emirate.”

Dubai’s mega-developers will also be using the coming years to flex their land banks and fully capitalise on them.

“Through our portfolio of residential communities, commercial and retail developments as well as our large land bank, we believe we are well-placed to meet the increased demand a successful Expo 2020 bid brings,” said Khalid Al Malik, CEO at Dubai Properties Group. “We are also encouraging third-party investors to develop projects that will cater to the growing number of residents and visitors expected in Dubai over the next decade.”

A new commentary from Jones Lang LaSalle reckons that the immediate impact of improved sentiment is “likely to be an increase in the asking price for both land sites and existing villas/apartments in developments close to the Expo site”.

“While prices in the Jebel Ali area will almost certainly increase, the availability of significant new supply will temper this increase and could result in a widening gap between asking prices and those the market is willing to pay,” the report said.

“Supply levels in the corridor to the south of Dubai are likely to increase. A number of developers have major land holdings around Dubai World Central and plans to develop these are likely to be kickstarted on the back of the improved sentiment resulting from the Expo decision.”

Nakheel recently launched 500 new land plots at Al Furjan in Jebel Ali, and other developers would soon start to leverage their own holdings in the immediate neighbourhoods.

There remain significant levels of new residential supply planned for Dubai over the next two years (with 45,000 units scheduled for completion by the end of 2015), according to the Jones Lang LaSalle report.

“While few of the new projects around DWC are likely to be completed within this timeframe, significant levels of off-plan sales could add further competition to those projects already announced,” it said.

But developers and other market stakeholders could yet do with retaining a sense of caution. “While the Expo will result in long-term benefits to the Dubai economy and the real estate market, the short-term impact needs to be managed carefully to avoid the inevitable boost in sentiment translating into excessive price growth or over development,” said Alan Robertson, CEO of Jones Lang LaSalle Mena.