Covid increases the chances of real estate ownership in Dubai –...

Covid increases the chances of real estate ownership in Dubai –...
Covid increases the chances of real estate ownership in Dubai –...
(MENAFN – Al-Bayan) Date: October 11, 2020 Events are currently accelerating in the real estate market and are developing remarkably in terms of the abundance of investment opportunities, and once again the emirate is proving its ability to grab opportunities from the heart of the challenges of regional and global developments, and by bringing the lens closer to the course of the market, it appears that events are accelerating, most notably the pressure of supply on sale prices, and the diversity Offers and have great flexibility in paying for the property.

Some believe that these variables are inevitable results produced by the “Covid 19” pandemic that struck and still are the peoples and economies of the countries of the world, but the most accurate opinion is that the effects of the pandemic on the market in Dubai have receded in slowing down the speed of the real estate market cycle, and in that slowness there are advantages that are evident in the abundance of investment opportunities Unique and distinctive, amid speculation that these opportunities will not be available in the coming year for those who can buy now, but he is waiting for the hope of further price decline, just as it happened in 2010, which means that “Covid 19 has increased the opportunities for investors to own Dubai real estate.”

Complaint and satisfaction

These accelerating events on the market ground and in its corridors at the present time resulted in a complaining team represented by some developers, and another satisfied team that includes all real estate buyers in the time of Covid 19. This year has witnessed a distinguished performance of the Dubai real estate market despite the challenges that have occurred and are still driven by engines. Supply and demand. Ready and under construction properties have performed well.

The Dubai Land Department confirms that the diversity that has become the most prominent title in real estate offers has stimulated the entry of investors of all segments, and of all nationalities, and thus the emirate is achieving more fruits of its efforts to establish its demographic identity as a city for all segments. The consensus of local and international consulting firms and companies specialized in monitoring real estate investment globally, that local development companies are in a fierce competition to win serious, ambitious buyers to buy a second home with the aim of spending holidays or investment.

According to a previous survey by “The Economic Statement,” the prospects for real estate projects with integrated services that belong to the new Dubai regions are more fortunate, with some old areas retaining their share despite being limited to Gulf citizen ownership. The pandemic has also motivated developers to reduce prices and support the buyer with facilities.

In order to revitalize the Dubai real estate market with practical solutions, the Land Department has taken a set of measures, most notably the signing of the partnership of the Cityscape Real Estate Summit 2020, the non-profit real estate conference and forum, which will start on November 16 and 17, with the aim of restoring levels of confidence in the sector and stimulating economic recovery. The department cooperated with Smart Dubai and the Department of Finance to develop remote payment services, which would facilitate the real estate registration process through the Dubai Pay gateway.

Sultan Butti bin Mejren, Director General of the Department, said: We continue to develop our services and facilitate their provision to our customers, not only for the sake of their happiness and comfort, but also to ensure their health and safety, especially in these exceptional circumstances in which our efforts are combined with other institutions and departments, in order to support the efforts of the authorities Health Ministry concerned to limit the spread of the Coronavirus, and contribute to the return to normal life as soon as possible.

priority

Ahmed Al Matroushi, managing director of Emaar Properties, says that the percentage analysis of the total supply of real estate reflects a strong preference for properties owned or developed by government or quasi-governmental companies.

He added that this indicates high and more stable ownership rates ranging from 30% to 40% in areas such as the city center and Dubai Marina, while projects developed by sub-developers achieve rates of up to 30%.

Choices

For his part, Salih Abdullah Lootah, CEO of “Lootah Real Estate Development”, said: The demand for low-density real estate will increase, as most investors, buyers and renters choose larger spaces to adapt to the new situation in light of the spread of “Covid 19, which highlighted the operational risks of transmission of infection.” In densely populated real estate, which is higher, the more likely it is to transmit the disease to others, so the sector will take a new path in designing real estate space in order to maintain standards that ensure social distancing is observed.

Reasons

As for Eng. Mohamed Binghatti, CEO and Head of Engineering at Binghatti Developments, he says that although the middle and high-income end user always prefers villa communities, apartments are still superior in sales for several reasons that are not lost on his mind. The investor or the observer.

He explained that there is a fundamental shift in the behavior of serious investors towards combining the right price with high quality, and we saw that after we launched housing projects during the past year.

Do not delay

Omar Farouk, CEO of Samana Real Estate Development, says that the company stands on the side of those satisfied with the course of the market and is very optimistic, as it did not suffer much with regard to the impact of the pandemic on the completion of its projects, explaining that the reason behind this is that its properties are distributed among Individual buyers not wholesale investors, in addition, its projects are sustainable, energy efficient and environmentally friendly with a low carbon footprint.

Real estate consultant: The market is full of quality opportunities

The real estate consultant, Muhammad Al-Nimr, said that the market is currently full of qualitative opportunities, and by reading the latest data from Bayut and Dubizzle, we find that the prices of properties offered for sale and rent in most prominent neighborhoods in Dubai remained stable during the first half of 2020, as they witnessed slight decreases that did not exceed 4%, compared to the prices recorded during the second half of 2019, which confirms the flexibility of the market despite the implications of the spread of the pandemic and the temporary restrictions imposed on movement and travel during the past months, in addition to the impact it had on landlords and property owners as they became more flexible when negotiating prices. Sale. “Potential buyers on both real estate platforms are still interested in known areas of Dubai,” he added.

Savills: The stimulus plans have given a strong momentum to the sector

“The real estate sector has shown great resilience since the beginning of 2020, and stimulus plans have provided a strong momentum for the real estate sector in the medium and long term. We have already witnessed a gradual increase in demand rates in the recent past, especially within the real estate sector,” said Murray Strang, Director of the Dubai Office of Savills Middle East. Housing, while improving loan-to-value ratios will attract more investments to the sector.

He added, “It is likely that banks will enhance their exposure to the real estate and construction sectors, in addition to expectations of a significant increase in mortgage refinancing activities in the coming months.”

Chestertons: Resilience in Residential Real Estate

Chris Hobden, head of strategic advisory at Chestertons Middle East and North Africa, confirmed that the residential real estate sector in Dubai witnessed a clear resilience at the beginning of 2020, in conjunction with the annual increase in sales volumes that contribute to creating a state of optimism among buyers. Continuing decline in real estate value in a way that touches the quarterly and annual decline, the decrease in the number of new housing units launched in the first quarter is a positive step, especially since the increase in supply over many years contributed to the decline in the value of real estate. On the chart it is positive for the dynamics of supply and demand in the medium term.

By the numbers

24.5

The report of the first half, issued by the Dubai Land Department, showed that real estate transactions in the emirate recorded a renewed start in the results of the performance of the Dubai real estate market for the second quarter of this year, to reflect the gradual return to the growth path witnessed by the emirate in its various sectors, benefiting from the packages And the incentive initiatives launched by the Dubai government during the past months.
The report issued by the Dubai Land Department stated that real estate transactions during the second quarter exceeded 24.5 billion dirhams, through 7,834 procedures, while 22,779 procedures were recorded during the first half of 2020, with a total value of 72.5 billion dirhams.

631

The Dubai Land Department report stated that in the matter of registering the sale of various types of real estate, including lands, buildings and units, in the second quarter of 2020, the “Mercad” area topped the scene with 631 sales, worth 1.52 billion dirhams, then a region. Dubai Marina with 515 operations, with a total value of 1.1 billion, and Al Barsha South came in fourth place, with 430 operations valued at 371 million dirhams. The remaining seven places were from the top ten, respectively, for: Business Bay, Wadi Al Safa 5, and Sheikh Gardens Mohammed bin Rashid, Worsan First, Burj Khalifa, Khairan 1, and Al Thanyah Fifth.

9160

The Dubai Land Department report showed that the first quarter of 2020 witnessed the participation of 9160 investors, who made 11,940 investments, worth 21.2 billion dirhams, but the second quarter recorded a relative decline, after 5,528 investors concluded 6,523 deals, the value of which approached 11 billion dirhams. . Thus, the total number of investors in the first half reached 14,688, with 18,463 deals, amounting to 32.15 billion dirhams.

Among them, the market received 1223 Gulf investors during the second quarter, recording 1431 investments, whose value increased to 2.1 billion dirhams. On the other hand, 706 investors of different Arab nationalities accepted the Dubai market and completed 798 deals, amounting to 1.2 billion dirhams.

2895

From the data of the first half, reported by the Dubai Land Department’s report, it appears that 2895 Gulf investors participated in 3712 real estate investments, whose total value reached 6 billion dirhams, and a turnout of Arab investors in the same period, after the entry of 1839 investors of different Arab nationalities And they registered 2,203 investments, whose value exceeded 3.2 billion, and there was a noticeable increase in the number of foreign investors, who reached 9,213 investors, who concluded 11,240 deals worth 16.2 billion dirhams.

Women had a share of the total number of investments and their value. In the second quarter, their number reached 1,781 investors. They concluded 1922 investment deals, amounting to approximately 2.6 billion dirhams.

“GVG: Competitive price incentives for investors

Ali Al-Salami, founder and president of GVG Real Estate Development, said that the UAE, with its great success in containing the pandemic early, has established its position and the status of its real estate market as a safe haven for all residents, pointing out that the effective precautionary measures taken by the UAE in facing and controlling the pandemic have become a new element. In addition to the attractions of the real estate markets in the country in general and in Dubai in particular, in addition to the investors ’conviction of the other advantages that residential real estate in Dubai enjoys, which is that it is among the cheapest and most competitive in the world, as it is not subject to tax and has quality in construction and finishing Integration of services, advanced infrastructure, and feasibility of investment returns.

He added: The increasing desire of foreign investors to live in Dubai against the background of the authorities’ handling of the pandemic came on the words of the investors themselves, especially those who have families, and the company’s staff conducted video interviews in recent weeks with investors from outside the country, and their conversations focused on their desire. In buying homes in Dubai after they saw the high craftsmanship and the strong and immediate response of the state in all its joints and institutions at the highest levels to protect the health and safety of the population through an advanced health infrastructure that contained and undermined the pandemic.

Al-Salami pointed out that the health system emerged victorious from the sudden and difficult test that it was subjected to on the eve of the spread of the Corona virus, it has reformulated one of the essential features of Dubai real estate, which is security and safety, in addition to the residents ’feeling and reassurance of their security and the security of their families in the community, the feeling of protecting their health came Their safety was an added factor that further entrenched this essential advantage for investors.

Mag Development: The demand for real estate continues

Talal Mowafaq Al-Gaddah, CEO of MAG Development, said that the company’s investment in Dubai reflects its belief in a promising future for the emirate regionally and globally, while the volume of foreign investments does not exceed 5%. He continued: Dubai is immune to the crises created by the emerging Corona virus, Thanks to its economic diversity and the rational economic policies pursued by the emirate’s government, which guarantees a strong boost to compensate for the losses that were recorded during the suspension period. Investment sectors operating in it, on top of which is real estate investment.

MAG Development, the real estate development arm of MAG Holding Group, announced that 95% of its investments will be concentrated in Dubai, based on its full confidence in the future of investment in the real estate sector in the emirate. The investment opportunities that Dubai abounds in, which will be the region’s destination for real estate investments after the end of the (Covid 19) pandemic. She confirmed that it continues its construction work despite some stoppages due to the repercussions of the outbreak of the Coronavirus, explaining that it is trying to keep pace with the changes imposed by the pandemic on customer requests.

Al-Gaddah emphasized that the momentum of demand for Dubai real estate continues in light of continuous keeping up with the desires of customers, and that the crisis has shown profound transformations in the real estate development sector, explaining that, for example, the “Covid 19 crisis” contributed to the high demand for designs of homes or villas that overlook private areas to be Designated for closed gardens, places for play and entertainment, in addition to maximizing the role of contactless digital technology in new buildings.

10 attractions

01 Variety of offers
02 Flexible Payment Methods
03 Abundant Opportunities
04 Affordable Prices
05 High quality
06 sustainable projects
07 Increase purchase financing
08 government stimulus packages
09 Maximizing the role of technology
10 integrated sanitary canopy

To view the “Health Statement” file in pdf format, click here

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