Is this the right time to invest in Dubai’s real estate market?
The pandemic has changed the consumer behavior in Dubai and made a new demand for townhouses and villas in Dubai, with number of transactions rising.
Basically, investing in the property market is a tricky game because of its ever-changing market and the current situation; it can be difficult to know when the best time to invest is. The property market in the city of Dubai witnessed a major growth of 20% last year. This means any property investments will be sure to rise to meet the demands in the future, whether you are looking to sell or rent your property.
This blog will highlight reasons which will make you understand why investment in Dubai can turn out to be the best option now.
The property market in Dubai is rising
The coronavirus pandemic is taking a toll on real estate developers and home-builders in second quarter of the year. Leading property developers had been rushing to complete their development projects ahead of 2020, which has now been rescheduled to next year in the wake of the coronavirus outbreak, as per a report.
The postponement of Expo 2020 could be a positive catalyst for the real estate industry, as it will help attract investors for ready residential units in the market. Developers have held on new projects and slowed down the pace of work on existing developments so they will be able to market existing stock to potential buyers ahead of the six-month-long mega event, which is expected to attract 25 million people across the world.
The Dubai real estate market is facing problems of an oversupply, with more projects nearing completion, hence, the delay in World Expo could help to resolve this key issue by affording more time for developers to sell their residential and commercial units, as prices become more affordable.
Properties in Dubai 2019-2020
In 2019, builders began with projects that were set to offer at least 13,216 units by the end of the year. However, the actual completion rate with real estate projects is almost 40-50% of that. Therefore, a total of 6,500 units saw actual completion in 2019. The momentum shifted towards the start of 2020 and continued the spillover with more than 20,000 residential units completed from January to April 2020.
Developers targeted areas likely to be the most plausible options for the Expo 2020 site. Since the declared event site was more towards the Southern districts of Dubai, projects were launched there. As per the data pooling in from various statistic reports, the Jan-April 2020 period saw a rise in numbers such as more than 15,000 flats and apartments, over 1,000 serviced apartments, and more than 3,800 townhouses and villas in Dubai.
Although the UAE economy is facing a significant challenge, the real estate market will continue to mature. Given the long-term nature of the investment that real estate has always had, it’s safe to say the Dubai real estate market is going to survive and growth will come back. At present, times are challenging but the desire to visit, live, and work in Dubai has not diminished.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Propertypistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
