How does the Holy month of Ramadan affect the real estate market?

Written by Unique Properties

Ramadan is the ninth month of the Islamic calendar, in 2018, it begins around the middle of May. Lasting almost 30 days every year, Ramadan is observed by 1 billion practicing Muslims worldwide. During this period practicing Muslims fast from dawn until sunset, pray, read the Quran, engage in charity and also generally avoid acts that are considered sinful. These grateful deeds are considered to bring practitioners closer to God.

The month of Ramadan is not only marked by dusk to dawn fasting, but also tends to draw crowds into shopping malls, especially in the UAE, generally shopping mall and retail shops expect an increase in the number of sales this month. However it is generally assumed that property sales and transactions slow down in Ramadan, but this is actually just a myth. After looking at the market trends for the past few years we noticed that it may be true that the market sees a small pause, but this is generally because the holy month was often in summer and we generally always notice a slow down in sales during the summer.

There are other factors that have a bigger impact on property sales than Ramadan, for instance as we mentioned earlier the hot and humid months of May to September. Sales usually decline in this time simply because people will be less willing to move around and visit properties they could potentially invest in. We have noticed that property inspections decrease due to the excess heat or due to people being out of the country during summer. However, the investors that actually attend the viewings tend to be more interested and usually end up buying the property. Oil prices drop and general economic slowdown  are among some of the other factors that could impact demand for property.

In fact, we often see leading developers launch major off plan projects just before the holy month starts. A great example of such a developer would be Emaar, which launched two major projects on May of 2017 which was just before Ramadan. These two projects were “Vida Dubai Mall” and “Creek Heights”,  these two projects both sold instantly within the next few months.

In addition it is also common that major developers provide great deals to celebrate this month, for instance, to celebrate the Holy Month of Ramadan, DAMAC Properties, a leading luxury real estate developer in the region, is offering savings of up to AED 500,000 on a selected range of ready properties including apartments and villas in DAMAC Hills, Jumeirah Golf Estates, the Burj Area, Jumeirah Lakes Towers and Jumeirah Village Circle, this amazing deals were recently announced on the developers site.

It is true that the beginning of the year is when the real estate market sales are boosted, but real estate agents often recommend investors to invest during Ramadan as they could take full advantages of the generous deals which are offered only during this time of the year.

From the link below you can book an agent to discuss with them the opportunities available in the Holy month of Ramadan and direct insights from an industry leading broker.

 

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