Dubai real estate experts were keenly awaiting the arrival of the year 2020 because of the much-anticipated, global event Expo-2020. However, due to the novel coronavirus, it had to be pushed to 2021.
This wasn’t the only change that COVID-19 triggered in Dubai real estate sector. The market witnessed a drastic change in terms of prices and demand for off-plan and ready properties including villas, townhouses and apartments for sale in Dubai.
Take a look at some of the major changes witnessed by the real estate market in Dubai:
A Shift in Demand for Apartments
Studios and apartments were considered to be the hot properties before the COVID-19 hit Dubai property market. Projects, in every part of the emirate, were launched featuring high-end living spaces. However, due to the global pandemic, construction work was halted. This severely impacted the real estate market.
Also, salary cuts and downsizing also contributed to the reduced demand for apartments for sale in Dubai. As the purchasing power of the buyers was impacted, their priorities shifted to making their ends meet instead of buying a new home or investing in the property market.
It’s no secret that the living cost in Dubai is on the higher side. Thus, a lot of people, particularly singletons who belong to other countries and have to support their families back home, opt for shared apartments to reduce their living cost. However, due to the pandemic, even those who can afford a separate residential unit, have opted for shared living spaces. It allows them to manage their funds effectively if their salary has been reduced.
Incentives Announced by the Government
The UAE government, in order to, give a boost to the property sector, announced some incentives for buyers. The LTV ratio was reduced and the process to buy a home in Dubai was made easy. Timely actions were taken to encourage locals and expats to buy properties in the region.
Reduced Property Rates
The developers, too, showed enhanced flexibility to sell out their stock of ready apartments and other types of residential properties. Property rates were reduced significantly. For some, the purpose was to liquidate their assets while for others, it was to generate revenue. Nevertheless, the reduced property rates in Dubai have made it an ideal time for people looking to venture in the real estate market or add more listings in their existing portfolio.
A lot of people, who lived in posh areas or lavish rental residential units, had to relocate to more affordable residences. Again, pay cuts and downsizing is the reason that has led people to make this decision. Also, the fact that the number of COVID-19 cases is increasing and there’s uncertainty in everyone’s mind isn’t helping either.
Increased Demand for Villa
While the demand for residential properties, on the whole, reduced but relatively bigger and spacious units (villas and townhouses) witnesses a surge. This is due to the fact that it is during the lockdown many people realised the importance of spacious residences. Particularly, those who lived in smaller apartments or studios. As they were confined to their homes during the lockdown, they faced many difficulties. They were also instructed not to use shared amenities such as swimming pools and fitness centres. This is why those who can afford moved to villas and townhouses. Top real estate agents and portals confirmed that they received a higher number of enquiries for bigger living spaces.
The Right Time to Buy Property in Dubai
It’s not easy to enter in the Dubai real estate market for the sole reason that property rates are extremely high, be it ready properties like apartments for sale in Dubai or off-plan properties. However, as the property rates have reduced, it’s touted to be the best time to buy real estate in the emirate. It doesn’t have to be located in one of the most popular communities. You can look for properties for sale in neighbourhoods located at a little distance from the city. These are mostly self-contained communities with luxurious residences. The best part, rates are comparatively lower.
Life in Dubai has, more or less, returned to normal with travel restrictions being eased and tourist attractions reopened. However, experts believe that it will take some time to real estate in Dubai to be back to the way it was earlier.