Down fall of Dubai Real Estate during the Covid-19 Pandemic
The starting months of 2020 brought the outbreak of the novel coronavirus throughout the world. Every country affects by the spread of this deadly virus. Governments worldwide imposed complete and partial lockdowns in their respective regions to control the insane spread of Covid-19.These lockdowns affected almost all industries worldwide, but it has had a more significant impact on specific sectors, including Real Estate in UAE.
Although, The risks of the spread of the virus from different activities, the advantage of online businesses to operate remotely, and the policies to control the spread of the infection have each played a role.
Main Causes of Economy Downfall
These conditions went the same for Dubai as well. Many sectors constituting Dubai’s economy collapsed due to the sudden outbreak of the novel coronavirus, especially the Real Estate Market in Dubai.
As a result, his demand for Apartments for rent in Dubai went through colossal suffering. However, the government of the UAE took unprecedented steps to minimize the effects of this deadly pandemic and bring the everyday life of Dubaians back to normal.
During early 2020, the real estate market in Dubai was shockingly hit so hard by the unprecedent events and incredible challenges of that historic year.
However, It had been predict at that time only that the economy, and consequently the real estate market, would gradually recover from the shock depths it had hit earlier in the year.
A famous Global Magazine has said that the Real Estate Market of Dubai has now seen a permanent change that will be continued forever.
The Real Estate in UAE possesses some unique features compared to its equivalents in the region’s other countries.
This is mainly because UAE is a temporary home for many folks from abroad compare to the nationals, which in turn affects their preferences and consideration when it comes to choose a residential place.
This large population of foreigners mostly decide to live in one of the Apartments for rent in Dubai.
Peak of Pandemic
The Covid-19 pandemic has forced many people to work from their homes, and most of these white-collar workers live in Apartments for rent in Dubai; that’s why more and more people would now choose homes that are soundproof or that have a space for exercising.
However, Covid-19 also introduce the risk that high-density residential areas could have on residents. Hence, it is believe that real estate developers will start considering designs that maintain new distancing standards.
During the peak of Covid-19 in 2020, UAE’s property market has transitioned through several different stages. However, the main problem that worse the situation during the Covid-19 period was the oversupply of Real Estate in Dubai.
During the last decade of the 2010s, tons of investors enter in Dubai Real Estate Market with heavy investments and started hundreds of new residential and commercial Real Estate projects. As a result, the supply of residential units was too much higher than the demand for Real Estate in the market.
Decline in New Constructions
The whole decade of the 2010s was filled with vast numbers of new constructions in every part of the city. When Covid-19 hit the whole world in 2020, the situation in Dubai Real Estate got worsened.
There were many empty residential units with no buyers to get them, along with a considerable number constituting of empty Apartments for rent in Dubai with almost no tenant to rent them out.
Dubai’s primary & central areas, such as Downtown Dubai and Dubai Marina, saw further declines. Still, they continued to perform above average, while secondary locations, such as Motor City, JVT and JVC, saw steeper declines.
Emirati Government’s Response to Pandemic
After the fall and decline in Dubai’s Real Estate Market, the government of UAE took immediate measures and initiatives to make this current rebound of the economy and Real Estate sector possible and encourage individuals, especially ex-pats, to reside in Apartments for rent in Dubai.
Those government initiatives strengthen the market momentum for the next 12 to 18 months. As a result, experts predict that these upcoming months will be the most golden period for Dubai’s Real Estate Tycoons and other developers in Dubai’s Real Estate Market history.
The government acted as being responsible during and after the decline and made sure the longevity and security of the Real Estate sector.
The Local Government has Taken a Number of Measures
Over the past year, the UAE government has introduced several measures to support the economy. This includes visas for retirees and professionals working remotely and expanding the 10-year golden visa initiative.
The government of United Arab Emirates UAE’s successful coronavirus vaccination drive resulted in the lowest number of Covid-19 cases recorded in the last 12 months; Dubai’s real estate sector is flourishing with the highest-ever residential secondary market transaction values recorded in the second and third quarters of this year.
Emirati government’s response to the Covid-19 outbreak has results in around 92.4% of its population being fully vaccinated along with companies back working in person, children back in schools, and tourism fully open to all countries have all made the UAE an even more attractive option for businesses and individuals looking for a stable and safe country to move to.
Due to practical steps taken by the UAE’s administration, life in UAE came to normal so quickly. The country’s tourism also reached its peak. This happened as other tourist spots around the globe were closed due to Covid. Dubai was attracting a large number of tourists.
UAE has made one of the fastest and most amazing recoveries from the Covid-19 virus. Every industry rebounded and came back to its previous position. Investors from all over the world became interested in investing their money into different sectors, including Real Estate. The demand for Apartments for rent in Dubai also rose to its previous level.
Dubai Real Estate Rebound and Increase in Demand of Apartments for Rent in Dubai
When the pandemic ended, the economy of the United Arab Emirates started rebounding. The investors in Real Estate got their returns in almost no time.
Dubai’s real estate market has always been regard as a prestigious market. This is because investors put all their hopes while investing here. Several different factors are behind & driving the Real Estate recovery in Dubai: –
Successful Vaccine Drive
UAE was among the first and the most prosperous nations to start and complete the Covid-19 vaccine drive. As a result, as of 7th November 2021, the UAE government has vaccinated almost 88.4% of its population.
Dubai Expo 2020
The happening of Dubai Expo 2020 has also predicted positive impacts. This will not only influence not only on the Real Estate sector but on the overall economy of the UAE. Almost 25 Million individuals will visit the ongoing Exhibition. Many will decide to permanently settle in Dubai due to the valuable Business and financial opportunities due to Expo.
Due to the settlement of these new Dubaians, new demand will emerge in the Real Estate sector of Dubai. The previous decline will recover due to this.
New Visa Policy
The United Arab Emirates has decided to a new visa policy giving visas to retirees. The government has recently proved a law that provides long term visas for retired individuals. This will bring more accommodation oriented folks into Dubai, and eventually, demand will increase.