Despite the global pandemic, real estate experts are still hopeful for the stability in Dubai’s residential property market. For obvious reasons, the market has dipped but these effects are predicted to not last for a long time.
If you are interested in investing in Dubai’s residential real estate market and want to know what’s in store for this sector in 2020, you have landed at the right place. This post highlights the property outlook for Dubai’s residential real estate sector and how it is going to unfold in the year 2020. Continue reading!
Dubai Expo 2020
It is, more or less, confirmed that the much-awaited and anticipated Dubai Expo 2020 will not take place this year. The UAE has officially requested to postpone this event. The global event was to take place from October 2020 to April 2021. However, there is confirmation on new dates as of now.
The delay of this event is a setback for the real estate sector. This is due to the fact that about 25 million people were expected to visit Dubai for this purpose. Preparations for the event were in full swing and arrangements for the stay of expected guests were already made. As of now, with the event moving to next year and the UAE witnessing a decreased number of visitors due to ongoing pandemic, real experts believe the demand curve is going to shift towards the lower side. This can open up opportunities for those who are looking for properties for rent in Dubai.
Property analysts and real estate experts predicted that 2020 will play a key role in Dubai’s real estate market and the overall economy. They believed that Dubai will have 50,000 more housing units this year This plan now seems to be halted by the ongoing pandemic. However, it is quite early to say whether this number will be achieved or not.
Having said this, the supply for properties in Dubai is going to see a spike. There has been a surge in the launch of new residential projects in the city. With this development, the number of housing units and apartments are on the rise. The increased supply will have an impact on the economic costs and rents, which are going to stay on the lower side. Hence, those who wanted to own a home in Dubai or get one at rent, they are going to have quite a few options up their sleeves.
The New Trend
The real estate market in Dubai has witnessed a new trend in recent months. Instead of high-end, luxury villas and apartments, developers are now keen to market residential units that are available at economical rates. There are still many options for people looking for luxury villas for rent in Dubai but the shift in trend predicts the demand for affordable housing units will increase over time. This trend will also encourage people to buy property instead of renting.
The Launch of REST
Generally, buying or selling property in Dubai involves complex and complicated procedures. This is why the Dubai Land Department has come up with a new initiative in the form of REST – Real Estate Self Transaction. As the name suggests, it promotes self transactions in an automated way. Thus, there will be less documentation and paperwork required. The process of buying, selling, and renting a property will become much more convenient for every party involved. With the help of this app, buyers, sellers, landlords, and tenants will be on the same platform. They will be able to make transactions online through this app.
On the whole, the process will become more cost-efficient. This platform can particularly prove to be useful in the lock situation as the involved parties can finalize the deal and complete the proceedings online.
The Effect of Golden Visa
It is a residency visa that remains valid for 10 years. The UAE government offers this visa to foreign investors and other specialized professionals such as doctors and engineers. Students with exceptional grades can also apply for this visa. Experts are of the view that the real estate market will grab more attention from foreign investors with the help of this scheme. It will provide them with the opportunity to invest in this sector in major cities of UAE including Dubai.
New Entrants in the Market
The coronavirus outbreak kept China out of the real estate market in Dubai. Therefore, developers shifted their focus towards investors from Russia and GCC countries. Furthermore, the market also witnessed an influx of new entrants from the local market. Young emirates have shown interest in investing in the market albeit not on a larger scale.
India, London, and Africa are other nations that have shown interest in this sector. The increased interest by different nations holds better prospects for Dubai’s residential real estate sector in the long run.
All in all, what 2020 holds in store for the residential real estate sector in Dubai is yet to be seen. However, experts still believe the market is going to bloom. So, if you are looking for opportunities to invest in properties in Dubai, start looking out for your options once the lockdown period is over. You can find plenty of best deals at Zoom Property in both residential and commercial sectors.