The real estate sector plays a huge role in the UAE’s economy, primarily in Dubai and the other members of emirates. In the last few years, Dubai has shown have shown great pace in developing its local property market.
The global health pandemic corona affects every business sector all over the world, including the Dubai. Dubai ‘s property sector was almost doing pretty well before this pandemic. There was a hustle in bustle in the market as people were taking an interest in sale purchase and resale and renting the property. The real estate market shaken badly with the struck of the corona. According to a report of new consulting firm ValuStrat Home sales transactions cut down by almost fifty percent after the COVID 19, many homes and residential projects were expected to complete and scheduled to handover this year, but everything stopped at once. The sales and transactions for the commercial property were also eighty percent lower as compared to the same period of the last year. Unfortunately, the real retail sector was also hit badly by the lockdown measures against the spread of corona. The hospitality sector was also affected by the travel restrictions on travelers, and many hotels shut down temporarily to meet the fixed cost.
The Situation Nowadays
The good news is that despite corona and its effect, the sale real estate sector starts to show impressive transactions after June. These transactions are less than as compared to last year but satisfactory for the reason that Dubai real estate s market is working. People are witnessing impressive levels of real estate activity from the last few months.
The govt, Ministry, and land sector are also taking different measures and initiatives to attract first time home buyers. Tax and mortgage relaxation are enough to attract home buyers. According to many reports from different land firms, this is the win-win situation for home buyers. Low mortgage interest rates and fewer service charges, and more buying options favor prospect buyers.
There are two more aspects to keep in mind; one is that now people are looking for different types of properties after a corona. They are looking for airy and properly ventilated properties, whether they or commercial or residential property in Dubai.
The second thing is that corona also disturbs the income streams of a large chunk of people.
Many people either lost their jobs or face salary cuts. Businesses are also facing irregular income streams due to corona. It is also a fact that corona disturbs the buying power of prospective buyers. Now people are less to invest in this sector, but govt and ministry is trying to best bring the hustle and bustle in the real estate sector. UAE government is planning to extend its lending policies to support more investments and attract prospective buyers.
This year is great for buying a property with great deferred payment options. This is a great idea for those who are living in rented properties. Now developers and planners are also launching affordable properties. The Ministry of and govt is making buyer-friendly policies. In short, everyone is playing its part to restore the activities in real estate.