The COVID19 pandemic pushed Dubai’s real estate market to a standstill. The lockdown and restrictions imposed by the government halted the construction projects, resulting in the delaying the real estate projects that were in progress.
Even the famous Expo-2020 has been rescheduled due to muted market conditions. The event will start on October 1, 2021, and run through March 31, 2022.
The property market in Dubai exhibited dismal performance during the entire 2020. Demand for properties was at an all-time low.
But, the demand showed signs of recovery in the third quarter of 2020. The market, after that, started picking up against all odds. By the end of the year, the real estate market achieved total transactions of 35,186 Dubai Land Department (DLD) units.
However, the number is lesser than in 2019—at 39,663—but is encouraging, given the challenges due to the pandemic.
The disruption caused by the pandemic also brought some long and short-term changes to the market, giving rise to new trends.
The new trends to shape the future of the Dubai property market are:
The pandemic has shown the risk of staying in high-density properties. Due to proximity, the risk of contagion is higher in such properties.
People will surely want to avoid infection in the future, so they will likely turn towards lower-density properties to get more livable spaces and avoid crowded places.
Real estate architects will be rethinking the space design to enable people to maintain distancing.
People’s preference for maintaining social distancing will be the guiding principle for developers in constructing real-estate properties.
Property developers will need to take into account the shifting of mindsets of prospective buyers towards new preferences. Developers need to redesign their properties to provide better infrastructure, such as thorough retrofitting.
Consequently, properties will have extra spaces with various safety features to add more value to investors as a consequence of their new design initiatives.
The pandemic has taught people to become more cautious about health and safety standards. People are likely to prefer properties near healthcare facilities, educational institutions, and retail stores, so they need not move far from their homes to avoid crowded places.
Mixed-use properties, which blend commercial, residential, and industrial activities into one location, are expected to be the most preferred property types for investors.
Such properties will give rise to the concept of a “community within a property.”
With the growing demand, Dubai real estate prices are likely to increase by the end of 2021 after reaching a 10-year low due to the pandemic.
People have now become more aware of the need to maintain safety and sanitation due to the pandemic. Even people intending to buy a house in Dubai as foreigners will now prioritize sanitation and safety before finalizing a property.
As such, property developers should put safety and sanitation aspects in their properties to attract investors.
To maintain high sanitation levels, developers should install disinfectant booths at the entrance of residential and commercial properties. They should also ensure they disinfect the properties thoroughly regularly.
Implementing advanced safety protocols is also another initiative expected from developers in the future.
According to Dubai real estate news market trends, the secondary real estate market performed better during 2020 than the primary market.
The underlying reason is not difficult to guess. The primary market suffered mainly due to the stoppage in construction work during the pandemic. And a sense of uncertainty arose among investors over the completion timeline.
A secondary market is also a good option for buying a house in Dubai for expats. Many foreigners who left Dubai during the pandemic are looking to sell off their properties in the city. Buyers can better negotiate the price.
But, the foreign population will increase in the city as the government has offered attractive schemes for foreign expatriates to relocate to the city. Visas for expatriate retirees and the expansion of the 10-year golden visa scheme can attract more foreign professionals to move to the United Arab Emirates.
Before the pandemic onset, many buyers preferred studio and one-bedroom apartments as they were cheaper than other properties.
During the pandemic, people have realized that they need bigger living spaces to confine themselves during constraints, such as the pandemic. As such, demand for bigger properties, like townhouses and villas, has risen in Dubai. And the trend is expected to persist in the future.
With the increasing demand, the average apartment price in Dubai has also moved up from the 2020 levels.
During the pandemic, digital equipment has helped in the property buying and selling process. Virtual property viewing by prospective buyers became a popular trend.
The trend of virtual property tours is not new. They have already been in existence. But, they gained more popularity during the pandemic.
As people stayed in their homes during the pandemic, property developers marketed their properties through real estate websites that offered 3D tours of properties.
In this way, prospective buyers can get an idea of the property right from the comfort of their homes. With 3D viewing, they also can get to know about the amenities and facilities available with the property. It is more or less physical visiting the property.
There are more digital implementations in the real estate market of Dubai. Many real estate companies have adopted artificial intelligence as an important part of their operations.
Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) platforms are now the common digital platforms in use among Dubai’s real estate companies.
According to the Dubai housing market forecast, property prices are likely to go up by the end of 2021.
It is difficult to draw up a clear picture of the future that holds for Dubai’s real estate market after the impact of the pandemic. But, the trends are sure to shape up the market in the future.