COVID-19 changed everything – from the act of grocery shopping to travelling and Dubai’s property industry is facing a similar outlook.
Ultimately we went from a sense of normalcy to uncharted waters and the state of Dubai’s property industry is facing a similar outlook.
The fear of the unknown in Dubai’s property market
The world of the property market can be a stressful experience – seasoned investors, first-time buyers, and for many in Dubai, looking to rent an apartment or condominium are often put off by the fear of the unknown.
And the atmosphere was already there before the impact of COVID-19 – forcing everybody to adapt to a new form of reality, altering on a daily basis.
What does the data tell us?
Up to 50 per cent of buyers are non-residents and a large proportion of Dubai’s residential community has not yet directly invested in the property market. However, due to the act of working from home, there was a rise in traffic on researching the topic of owning property – acknowledging its long-term benefits.
Before COVID-19, mortgage lenders were very positive. The Central Bank of the United Arab Emirates announced an increase by 5 percentage points, the loan-to-value ratios applicable on mortgages for first-time homebuyers – ensuring houses are affordable without associated inherent risks.
So if I wish to buy a property in Dubai?
In Q4 2019, Dubai announced growth of two per cent in the private sector – the highest growth in the last seven quarters, with 38,765 new jobs created. With this positive economic growth, the real estate sector has responded well too.
For 2020, there is an estimate of 50,000 units – primarily focusing on the new areas of Dubai;
- Dubai South
- Mohammed bin Rashid City
With the rise of units for sale, it shows the market has adapted and matured – perceiving the need to offer properties that are able to fit everyone’s budget.
How about selling a property in Dubai?
If you wish to sell any property in Dubai, the current climate offers a unique opportunity to re-evaluate how to approach your sales and their buyer’s needs.
As sellers and landlords, you know your properties better than anyone else.
For example, 6 months ago a separate space to work may have seemed luxurious – Dubai’s real estate market is seeing how people are changing their priorities, by researching the market in-depth and make these critical decisions with even more valuable information to hand.
For property developers in Dubai, rethink the strategy. By inputting a consumer specific requirement, it allows the consumer to see through their plan of action in the years to come.
As we reached the middle of 2020, the global economic situation may become unstable and continue to create a domino effect on Dubai’s climate.
With a sense of uncertainty and too much to process, getting the right professional assistance could make a difference.
It might help you sell with greater confidence and achieve your objective in a shorter time.