The UAE, like the majority of nations has been effected severely by Coronavirus. The global pandemic has resulted in strict measures to be put in place including a nationwide lockdown that began in April. Naturally this lockdown has had an economic effect on virtually every industry, the property market being no exception.
Despite this Property Finder figures suggest that the United Arab Emirates property sector may be more resilient than anticipated. This is shown through the total number or property transactions throughout April. In this timespan there were 1824 property sales transactions amassing a total value of Dh 3.62 billion. (Source - The national) This figure is less than previous monthly transactions, however this is to be expected. The global pandemic has resulted in large amounts of uncertainty, and therefore many predicted the property market to be hit harder. Having said this, it is now clear that COVID-19 is set to have more long term effects than previously expected. Therefore the question remains as to how the property market will continue to be effected into the future.
The future of the real estate market is set to change. The nature of COVID-19 is that working from home is now a compulsory practice for many people. Certain companies are realising this is case for the foreseeable future, and are perhaps noticing benefits from the situation. Due to this, many people are working from their living areas currently, and may be working from there permanently after the pandemic. As a result of spending more time at home, individuals are realising that a home could be more important than just a place to sleep.
As a result some believe that the real estate markets decline may off offset as people look to upgrade their homes. The post COVID-19 real estate market in China has rebounded slightly, as demand for larger homes that are more suitable for living alongside working has increased. Many predict this trend to be mirrored in the UAE property market. It is also predicted that many developers will be designing mid level properties with working from home in mind. New properties are likely to include additional features such as quieter ceiling fans/AC, soundproof windows and more potential areas in apartments and homes to be turned into work stations. Developers are also set to place an emphasis on productivity and safety in communal areas. Some believe they will take inspiration from hotel lobbies, with powerful wifi and semi private spaces.
What is happening in Dubai?
The property market in Dubai has shifted, now giving the tenant more power than ever when negotiating new contracts. This information has come for the latest market report from Core real estate.
The report anticipated additional rental incentives towards tenants for example a higher number of cheque payments, some contribution towards utility bills as well as partial rent waivers and even rent free periods. Essentially landlords are being lenient towards tenants in an attempt to maximise the occupancy.
It is a period of changing times, social and business norms will be altered and there will be an extended period of uncertainty whilst the world and the UAE figures out the new norms. Despite this life must go on, and many people are still moving or planning moves in the near future. More than ever it is imperative to make sure you are making the right move. Visit Mintaga to gain an invaluable insight into buildings and communities in Dubai, and avoid nightmare moves.