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The end of "Corona" is a new beginning for the recovery of Dubai real estate

Walid Al Zarouni

27th September 2020

Scholars expect that the year 2021 will witness the end of the emerging corona virus (Covid-19) pandemic, which would have a positive impact on the real estate sector in the Emirate of Dubai, in terms of sales, supply, demand, rents and real estate pricing.

Once the epidemic ends, expectations indicate that supply and demand can be balanced by drying up the quantities of real estate supply in the market, in addition to the economic stability enjoyed by the UAE, will encourage more investment demand for individuals and companies.

During the past two years, the real estate market in Dubai, one of the engines of economic growth in the emirate, has witnessed the launch of a large number of real estate projects, the construction of a large number of housing units, and an increase in the volume of supply against a slight decrease in demand.

In general, the real estate sector has sufficient resilience for longer periods than others in such crises, and the real estate sector in Dubai remains strong and solid and able to overcome difficulties and crises, whatever their type or source, the market is fortified with a system of laws, real estate legislation and modern regulations for the sector, which It has become more influential in the performance of the industry, and historically the sector has overcome many crises around the world, and it is always stronger than it was.

Dubai is currently witnessing real estate prices reaching very attractive levels to buy, due to the economic repercussions associated with the outbreak of "Covid-19", but with the end of the pandemic, during the next year, the pricing curve will shift up again, and achieve good levels such as those achieved by the sector in 2018.

The sector is full of golden opportunities for investment, and the present time is an ideal opportunity to buy in light of a good stage of the price correction process, so there are easy gains, in the short and medium terms, from investing in Dubai real estate.

Whoever bets on investing in Dubai is betting on certain success in the future, especially in light of the challenges posed by the Corona pandemic on the reality of the region’s or global economies alike, and only those who have financial and economic fundamentals will recover.

The emirate maintains its position as one of the most attractive tourist destinations in the world, in addition to government programs such as the "Retirement in Dubai" program and "Expo 2020 Dubai". All these elements guarantee a significant recovery in real estate demand for purchase and rent during the next year, and it has world-class infrastructure. And high levels of innovation, what supports the economy after the end of "Corona".

On the ground, the hospitality and real estate sectors in Dubai have survived the epidemic crisis, because they are essential to the emirate's economic identity, and thanks to the great government support, the two sectors were more flexible in bearing the repercussions of the crisis.

Openness to the world, cultural diversity and peace messages that the UAE government and people are adopting, achieve the required stability of the economic situation, and this has been reflected in the growth of real estate demand in Dubai.

There will be investments that will flow into the country in light of the recent peace agreement, and I expect the real estate sector in Dubai to seize a large share of it, given the investment reputation and the great confidence that the sector enjoys at the global level.

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The ability to balance supply and demand by drying up the real estate supply quantities in the market.