According to JLL’s Global Real Estate Transparency Index, Dubai is one of the “global top improvers” with a host of government initiatives and enhanced regulatory procedures
Favourable bank rates and dropping prices have meant that investors are once more looking to the UAE’s real estate sector, experts said at the 2020 Cityscape Real Estate Summit.
The two-day event, which opened on Monday morning at the Dubai World Trade Centre, brings together several industry experts to highlight challenges in the sector, as well as possible solutions that will drive recovery.
PNC Menon, founder and chairman of Sobha Group, said that real estate can play a major role in the region’s recovery even during a crisis. “There is pent up demand in Dubai’s property market and real estate has rebounded this summer with buyers looking to capitalise on record low prices. There has never been a better time to take advantage of the market. Investors need to be smart and identify specific assets, predominantly villas in prime locations that are currently undersupplied. Initiatives, such as the introduction of online property transfers from Dubai Land Department or the UAE Central Bank’s economic stimulus package, or favourable payment options from developers have supported the market.”
“Dubai’s long-term fundamentals have always been strong, with a growing population, excellent infrastructure, world class healthcare, education and an attractive tax base,” he added. “Affordability within Dubai compared to similar global cities is excellent and it should be noted that the UBS Global Real Estate Bubble Index marked Dubai as “Fair Valued” compared to cities like New York, London and Paris.”
Lewis Allsopp, CEO of Allsopp & Allsopp, said that a lot of people have been waiting for the right time to buy. “Dubai is now in a situation where prices have declined for six years. The economy is coming through something the world has never experienced before: the upfront money needed to enter the market has dropped to the lowest level needed for six years and mortgage and interest rates are as low as they have ever been. Clients have come round to the thinking that if now isn’t the right time to buy, when will it be? Something that may be missed by many is the Central Bank’s instruction to be considerate to those with a current mortgage and offer assistance where necessary. This adds a level of comfort and confidence in making an investment in Dubai.”
Allsopp added that in some cases, buyers have been holding back on purchasing a property as they believe prices will fall further as the economic climate changes. “However, in the last couple of months, Allsopp & Allsopp have seen a huge demand for properties that are in great condition and at an attractive and competitive price but these properties are becoming few and far between and some buyers are now willing to pay a little extra to get the property they desire. This has led to an undersupply in a number of communities across the city – a true indication of the health of the Dubai property market.”