August 31, 2021
Dubai Market post-Covid 19 is a blog aiming to look at the impact of Covid 19 on Dubai’s real estate market and forecast for the industry in 2021/2022.
Generally speaking, around 90% of Dubai’s population is transitional. Trends indicate repeated cycles of people coming and going, as per circumstances. Therefore, the real estate market in Dubai is not easy to measure or estimate. It is ever-changing and evolving. However, everyone living and breathing today knows that when Covid came, the market was hit hard. The pandemic was such a huge financial blow at a global level. Expo 2020 was postponed and Companies all over the world started slashing jobs amid a very unstable economic climate. The world was in total lockdown and travel was suspended. Therefore, international investors stopped arriving in Dubai. Local buyers and end-users stopped buying due to fear of uncertainty. Many expats returned to their home countries leaving the rental market in dismay.
At the lowest margins of 2020, the Dubai property market lost up to 40% of its value. However, the slow recovery to pre-pandemic levels ironically started the same year. The recovery is ongoing and the real estate market is gathering momentum as we sail into 2022.
Dubai Market post-Covid 19 would never recover without UAE’s outstanding contribution. The progressive measures that the government is taking during pandemic times are cementing UAE’s reputation as a global leader. Due to solid governmental assistance across all industry sectors, real estate is rapidly bouncing back at full speed. UAE’s resilience in the face of adversity shows how quickly the nation is able to adapt to new market reality and make the best of crisis. The smart solutions adopted by the Government show how UAE is a model of stability and resilience in the face of adversity.
UAE leaders had to enforce firm initiatives to tackle the impact of the pandemic. For instance, The National Disinfection Programme took over the country in an attempt to contain the virus spread. Furthermore, the economic stimulus worth AED 256 billion was a groundbreaking initiative to salvage and stabilize the economy.
While much of the world was watching the stillness of life from behind their window curtains, UAE remained open to tourists, lifting travel restrictions in July 2020. The huge surge in the number of tourists also signaled the revival of the real estate game. Furthermore, UAE is leading by example, conducting the fastest vaccination campaign in the world. Over 80% of the population in the UAE is currently vaccinated. However, safety and sanitization measures continue to remain in place all over the country. Also, wearing a mask is still compulsory in UAE.
Dubai Market post-Covid 19 – Today, Dubai is business as usual for many residents, foreign investors, and nationals. They once again take to the market and show confidence in buying, as they see the prices stabilize. We see a clear increase in demand for golf course townhouses and family villas. Residents are now looking for bigger space, more privacy away from the city center because many are still working from home. Villa transactions are definitely at the top of the revenue. Similarly, high-end waterfront property is also reviving the property market, with a consistent jump in sales.
Despite the pandemic, the economy is open, offering very attractive incentives for buyers and investors. All-time low prices, flexible payment plans, and relaxed mortgage conditions are driving the market upwards with record sales.
Dubai property market post-Covid 19 is looking much brighter. Borders are now open pretty much everywhere, people are getting vaccinated and Expo 2020 is just around the corner. The real estate market will definitely see a surge in demand when Expo 2020 kicks off. Dubai and Abu Dhabi remain favorite destinations, particularly for other GCC states. UAE promotes stability in the region, security for assets, and capital appreciation. Therefore, the country will see a sharp growth prior to and post Expo 2020.
UAE expects a huge traffic of visitors and tourists to the country. Therefore, we will see a lot of foreign and domestic investors taking the market by storm. Similarly, the event will create ample jobs in various sectors, subsequently leading to more housing demand. Expo 2020 positions Dubai at the center of tourism, trade, and logistics, preparing to welcome over 25 million visitors to the event. Dubai’s real estate market is already attracting more foreign investment with the return of international home buyers.
Furthermore, UAE implemented more relaxed legislation around issuing long-term visa and granting citizenship to outstanding residents. For sure, these measures will further boost the market attracting a larger audience. Expo 2020 is appealing on many levels and is already generating a huge volume of property transactions. Cash payments, cash management and financing continue to dominate the real estate sector, speeding the recovery of the market in 2021.
There is a great sentiment of achievement and prosperity surrounding UAE, especially before the big 50-year anniversary this year, on 2nd December 2021. There is no greater way to enjoy the National Day and Golden Jubilee than looking back with pride and moving forward with success.
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