Dubai is the platinum real estate market of the Middle East and the Asia Pacific regions for over two decades now. Since the last recession of 2009, Dubai as a property market has grown leaps and bounds. Considering the experience taken from it, I believe Dubai is going to come out just fine from the COVID 19 setback.
Dubai property market 2020
To begin with, the primary sale market is not going to get much beating as compared to the local rental market during this pandemic. This is because off-plan sales had already shown considerable growth of 17% in February 2020 since last year transactions of 8%. Had the pandemic never occurred this difference would have stretched further in 2020 Q3/Q4. On the other hand, the rental market has already been volatile for a while now with landlords giving 10% straight discounts on annual rents for existing tenants or for new tenants to come on board. With businesses being closed and salaries being slashed around, no one at this point is shelling out much for rentals. Indeed, the rental market has taken much serious beating than the off-plan market in 2020.
With Dubai being favourite among expats for living and working, especially Asians, I believe the property market will bounce back strong and hard like it did after 2009. With more population, demand will go up again for off plan Dubai sales and rentals and market will once again start to flow in the right direction. Also, since the majority of investors in Dubai are from the Middle East and Asia, due to the flight restrictions they are unable to do the transactions. Once the restrictions end, these people will come and revive the market like it was left before the pandemic struck.
To summarise, Dubai is surely going to come out of this crisis as and when restrictions around the world come to and end. Since off plan sales were already on track before the crisis, it would not be difficult to set the tone. Same goes for the rental market, it will also grow when people start earning more again.
Is it a good time to buy property in Dubai 2020
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