Dubai’s Property Prices Won’t Be Rising Anytime Soon
According to the experts, we should not expect the real estate market to stabilize any time soon. Thanks to the pandemic and its effects, the economic volatility has affected the real estate market as well. While things are expected to remain slow for now, this isn’t bad news for everyone. Low prices and a slow market mean that there are going to be plenty of opportunities for buying and renting.
Experts are saying that a low demand has led to prices going down significantly. There has been news about people selling assets at near cost prices. The rental and sale rates have come under a lot of pressure lately.
The state of the real estate market depends on your perspective. Property owners and landlords are stuck in a grim situation. While buyers can enjoy a market that is teeming with opportunities. It all comes down to where you stand in Dubai’s real estate market. The vice-president of the International Real Estate Federation of Arab Countries, Mahmoud AlBurai, is quite positive about the situation. According to him, next year’s Dubai Expo can very well be a turning point for the real estate market. A sudden increase in demand could help strengthen the market and bring it to a better position.
The State of Real-Estate Projects
A survey conducted by Knight Frank Middle East on the UAE market state helped shed light on people’s responses to the pandemic. The survey revealed that about 90% of residential building projects are still being worked on. There have been delays in their completion due to disruption in logistics and the availability of manpower. But other than that, things are being carried out as planned. As for projects that were still in their planning phase, developers are sitting and waiting to see how things turn out. A majority of projects that were still being planned are currently put on hold.
At the moment, developers need to think about how to move forward with their projects. They must be ready to take into account the changes that the market will undergo after the pandemic.
A Surge in Incentives and Discounts
The market is currently seeing an increase in discounts and incentives. And more are to be expected. You can already find places offering rent-free periods, reduced security deposits, and easier payment plants.
Rental rates are expected to fall down further as the year progresses.
We can also expect to see a reduction in the number of off-plan project launches. Better financing options such as lowered interest rates will help in stimulating the market. If that happens, the number of end-users might go up.
Greater Affordability and Availability
All of a sudden, everything in the market has become affordable and also available. Another interesting impact of the pandemic on the market is that more people are demanding larger spaces. Social distancing and quarantining have made people realize the value of larger living spaces.
There are loads of people asking around in the real estate market. However, as of now, no one seems to be in a hurry to make investments.