Since the COVID-19 outbreak started, the Dubai real estate market has been badly hit. The postponement of Dubai Expo 2020 halted dozens of property projects in the Emirate. Not to mention the implemented lockdowns and strict physical distancing exacerbated the problem. Despite this, though, the Dubai off plan property investment yielded positive sales in the last couple of months.
Dubai Off Plan Property Investment Remains Stable Despite Pandemic
The real estate projects in Dubai may have halted due to COVID-19, but the experts see a rising trend in sales. According to real estate experts, they recorded an astounding 60% jump in property transactions last February 2020.
The total number of Dubai off plan property investment sales climbed to 2,746 in 2020, in contrast to 1,708 last year. Meanwhile, in March, the total sales plummeted to 1,474 off sale property investment transactions in March 2020 compared to 1,888 in the prior year. This is due to the widespread lockdown implemented due to the pandemic.
Despite the slight decline in sales after the March lockdown, the real estate experts say they have accumulated enough sales for the second quarter. This is because most real estate developers have launched new projects prior to the lockdown. Around 75% of their off plan property investment inventory are also already sold or reserved.
According to Atif Rahman of Danube properties, they've delivered an astounding 300 million Dirhams worth of Dubai off plan property investment project in the market. They've also launched project Olivz, which consists of five condominium buildings scheduled for April 2022. Prior to the lockdown, they've launched the Phase 1 last March 2020 with initial 399 units up for sale. Despite the pandemic, they've recorded a record-breaking sales of 280 apartments four days after the grand launch.
Off Plan Properties’ Success
The real estate experts say the sales for off plan property investment continues to skyrocket due to two main reasons. One, there’s no need to inspect the site or property since the lot is still raw.
The developers can just send the blueprint, raw images, video, or virtual tour for client inspection. Likewise, the client won’t have to spend some time visiting the site every now and then. Off plan properties are more convenient on both parties who deal with hectic schedules every day.
Aside from that, the need for digital marketing and inspection is important now more than over. Due to the ongoing pandemic, on-site inspection is restricted. This puts the on-site properties at a disadvantage compared to off plan properties.
The Pre-selling Price Lures Customers
Another notable reason why off plan property investment is faring well is because of its low prices. Since the real estate projects are still under construction, the pre-selling price is generally cheaper. Moreover, more developers are competing to gain more customers. So you’ll likely find many offering their customers with cheaper prices, waived fees, ease of doing transactions, etc. Most customers are also taking advantage of this by choosing the best flexible payment schemes that work for them.
Due to these two factors, the off plan property investment industry sees a surge in real estate sales despite the pandemic. The experts see a gradual recovery in sales since Dubai allowed partially to complete resumption of business operations since June.
After the pandemic is over, though, the experts expect a massive influx of real estate purchasers. This is due to the much-coveted Dubai Expo 2020 which is expected to bring millions of tourists and investors all over the world.
Want to take this opportunity? Contact our real estate agents to purchase an off plan property investment now!