As the COVID-19 pandemic continues to wreak havoc the world, Dubai’s most anticipated Expo 2020 got postponed. This halts the booming real estate industry of Dubai. While many developers benefit from completing their projects on time, is it the same for homeowners? Can Dubai locals and ex-pats finally fulfill their dream of buying a residential property in Dubai? Let’s read and find out.
Experts Reveal Homeowners Can Now Buy a Residential Property in Dubai
Prior to the pandemic, the real estate industry already experiencing a 7-10% decline in appraisals for residential property in Dubai. However, everything changed when the members of Paris-based Bureau International des Expositions announced disturbing news. According to the overseer, the members had asked the Dubai Expo 2020 to be postponed and move between October 1, 2021, to March 31, 2022.
The decision to postpone derived to ensure the safety of the public due to coronavirus. The Dubai Expo would surely draw out massive crowds across the world. Unfortunately, this serves as a perfect breeding ground for the virus to spread. The announcement caused Dubai to lose a staggering 25 million tourists that were set to attend the event. This could’ve been a major boost to Dubai’s economy and real estate market.
The Good News
Due to the postponement, the experts predict the decline in prices will fall as steep as 12%. This means the prices and appraisal values of residential property in Dubai will have lower prices than before to cope up with their loss. Fortunately, this is good news for Dubai homeowners. The experts advise the public, whether you’re an ex-pat, a local Emirati, or investor, to purchase property now.
It’s because since developers have halted their operations, there’s currently an overwhelming supply of residential property in Dubai. This gives the public the opportunity to browse for an extensive collection of properties. The experts said this is the perfect time to push through with real estate ventures. Aside from fulfilling your dream of owning a house, you can also transform the properties for business. The experts reveal they expect the prices to surge once the Dubai Expo 2021 resumes.
A Surge in Real Estate Sales
It seems the homeowners are also taking advantage of the price decline despite the pandemic. The experts said the sales trend is already rising since Fall 2019 up to the first quarter of 2020. While it slowly halted during March and April due to COVID-19, the industry sees an upward trend in the last couple of weeks.
In fact, Mr. Abd from Property Finder notes there are more people searching and buying properties in Dubai Marina. With some of them even purchasing a residential property in Dubai for an astounding AED1.5 million (US$408,374). Abad thinks most Dubai home investors have waited for 5 years (at most), and it’s only today that they finally decided to buy properties. This is due to the fact that the prices have never stooped so low until today.
The Government’s Efforts
Despite the pandemic’s dire effects in the economy, the UAE government is poise to bring back Dubai’s glory once again. Aside from the long-awaited comeback of the Dubai Expo, Dubai also implemented security and economic incentive measures to help the public. Dubai offers a free waiver of late payment for mortgages and rental fees. They also give leeway for first-time home buyers. The applicants can loan up to 80% of their purchases.
Want to take this opportunity to purchase a residential property in Dubai? Contact our professional real estate agents now to purchase your first home or real estate! Don’t miss the chance to take advantage of low prices now!