COVID-19 has affected markets all over the globe and Dubai’s Property Market was not any different, the sector has seen a slowdown on the first few weeks of the pandemic due to the enforced lock-down safety measures taken by the UAE Government that has restricted movement which was an essential part of property viewings, sales meetings, relocation & more.
However this didn’t last for long as the governing bodies and real estate companies where quick to react and change the way the industry operated. Technology became a significant part of the real estate industry and in no time sales meeting turned into virtual online meetings and property viewing turned into 360 virtual tours.
In addition, work on construction projects resumed at a steady pace as the sector has been exempted from the restriction on movement, resulting in most of the projects going ahead with deliveries.
Analysts expected the slowdown to be temporary, even with the massive drop in the stock market and related sectors, we didn’t witness the same in the UAE’s real estate market. This industry is and will always remain a fundamental part of the country’s economy.
Demand for real estate in Dubai was already rising exponentially before the current crisis, driven mainly by local residents. We have seen the highest sales record in more than a decade last fall and we had high expectations for the first quarter of this year, which to be fair was still outstanding considering the global economy situation.
It’s Buyer’s Market Post COVID-19
It’s really too early to predict the extent of the global economic fallout from the current crisis, but we can very much say that prices today are at the bottom, or at least very close to it.
The coming months will present an opportunity for buyers with a long-term plans, expats who’ve made Dubai there home, local Emiratis or investors seeking high rental returns; they all are eager to benefit from another year of discounts before Dubai Expo 2021, in which economist predict prices will increase as Expo 2021 launch date gets closer.
Furthermore, today the current interest rates are very attractive and mortgages are made more accessible to first-time buyers, expatriates purchasing their first home can now finance up to 80% of their property price. Once the effects of the Coronavirus slows down and the restrictions are eased, we expect Dubai’s real estate market to face a buyers boom as stakeholders will seek to capitalize on factors such as low interest rates and lower down payments.
In addition to buyers getting financing at a historically low rates, developers are also competing to offer clients exclusive never before offers, some of which include DLD & service charge waivers and post-handover payment plans that last up to 10 years after-handover.
All of the above plus the continuous support from the UAE’s government, in terms of granting few billions in stimulus relief packages will all reflect directly or indirectly on investments made today, we might be witnessing today a unique opportunity of a lifetime for investors who are ready to invest.
If you are interested in learning more about the unique opportunities available in today’s market, feel free to get in touch with one of our real estate experts to get a free real estate consultation.
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