Covid 19 30 Apr 2020
How It affects the Buying and Selling of Property in Dubai?
For a lot of people, handling the various aspects of the property market is a tad complicated and problematic. It does not matter if you are an investor or a first-time buyer.
Nearly everyone, be it those looking to lease out their property as well as for those who are seeking an apartment for rent, especially during the is not going to be that simple.
Fear of the unknown!
In view of the changing reality brought in by the global health pandemic, it is compelling everyone to seek and look for safer options. Right now, the main priority is on stopping the spread of the virus, which is only possible, when one makes it a point to stay at home. These are indeed difficult times and one day or the other something good will come out of this.
Already there are visible changes, with more and more people adapting to the protocols that are being imposed. More and more people are staying doors and are working from home. Since all essential services are up and running, there is no panic as such. Everything is available and there is no shortage at all.
How bad is the real estate market in Dubai?
To be frank, it isn’t that bad, as one assumes. The property market is up and running, albeit on a completely different scale. Most of the real estate developers, agents as well as brokers have now resorted to using technology in a bid to reach out to the targeted audience. Yes, the normal operations are down, but most of them working overtime like everyone else from home, under the prevailing circumstances.
Some observations being made are as follows
- Going by the recent transactional data made available on the public domain, it does provide a clear picture. A large –percentage of the people in Dubai from the expat community are yet to invest in the property market.
- But then, most of them do realize the long-term benefits of investing in the property market. Because there is interest, there is a rapid increase in online traffic, as they do wish to know more about the various properties.
- With the announcement of the stimulus package by the Dubai government package, the Central Bank of the United Arab Emirates (CBUAE)also made it a point to increase the Loan to Value ration by 5%. The slight increase in, the loan-to-value ratios apply to mortgages meant for first-time homebuyers, which also means buying houses is all set to become more affordable and devoid of any risks.
- Besides, when you look at the overall market trend and take into account the consumer confidence, the economic indicators seem to be on the right path.
What is the general outlook of the market?
Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs, on being asked about the state of affairs said “ We are expecting a growth of two percent in the private sector in Q4 2019. This is the highest growth in the last seven quarters, with 38,765 net new jobs created. Obviously, in the immediate term, these figures may drop off slightly as businesses readjust but long-term, the signs are good”.
Despite the global outbreak of the pandemic, the real estate sector has responded on a positive note. Other than these, the market, in general, has adapted has a lot to offer and this shows that the Dubai real estate has matured and is very much in a stronger position. Of course, there will be a setback, but in the coming days, the market has the potential to bounce back.