Developers: We deal realistically with market conditions and the present time is ideal for buying
Realtors are asking companies to grant more facilities with the increase in supply
12,000 housing units were delivered in Dubai in the third quarter of this year.
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Real estate experts reported that the real estate sector suffers from an oversupply, especially with the delivery of more projects, which requires granting more facilities by developers to the final consumer, to attract categories of new investors, especially those wishing to switch from leasing to ownership.
For their part, real estate developers said that the development companies have become realistically dealing with the current market conditions, through the facilities, offers and incentives they provide to investors.
The real estate market
Activating the real estate market The Chairman of the Board of Directors of the Arab Gulf Investment Company, Khalifa Saif Al Muhairbi, affirmed that "organizing the activities of the Cityscape Dubai exhibition is an indication of the first stage of recovery for the real estate sector in the country, as the exhibition is an appropriate platform to enhance the national economy and its leadership and superiority." Al-Muhairbi said: “The approval of granting golden residency to residents for a period of 10 years for a number of categories, which will greatly contribute to revitalizing the real estate market and opening the way for them to seriously go towards buying and owning residential units in the country for the purpose of residency. He continued: “The real estate sector witnessed a slowdown during the last period, but this does not mean that this sector has gone through a state of stagnation. Rather, the buying and selling process continued, but at a lower pace than before, and it can be said that real estate trading prices in various regions of the country are appropriate and encouraging to buy. Ownership, especially for end users. He explained that «real estate development companies operating in the state have plans to launch new real estate projects, which will be disclosed during the coming period, in light of the presence of a demand to buy and own real estate in the state». He stated that «the return of the real estate sector to its activity means the return of many sectors related to it to its activities, such as contracting and construction companies, and banks that will resume providing housing loans. And other sectors ». Abu Dhabi - Emirates Today |
In detail, the head of research at JLL in the Middle East and North Africa, Dana Selbak, said, “The real estate market in Dubai is experiencing an increase in real estate supply, as 12,000 housing units were delivered in the third quarter of this year, and 20 thousand are expected to be delivered. Another housing unit by the end of this year, in addition to the possibility of accelerating the delivery process in the first half of next year, before the start of the Expo 2020 Dubai exhibition.
She added that «the real estate stock in the residential sector amounts to 600 thousand housing units, which requires facing these stocks of units in the market with more plans by real estate developers, in order to attract more final investors».
Selbak indicated that developers should consider with interest the category of investor wishing to switch from leasing to ownership, as they expect more facilities in relation to payment plans and payments, in addition to facilities related to service fees that are an obstacle for all investors.
And she expected that the Expo will contribute to absorbing much of the supply in the real estate market, starting from the third quarter of next year.
prices drop
For his part, Chairman of the Board of Directors of "W Capital Real Estate Brokerage", Walid Al-Zarouni, said, "The decline in real estate prices poses a challenge to real estate developers and increases pressure on them. Therefore, they are required to adapt to market conditions, to ensure that they remain in the circle of competition."
He stressed that the increase in the supply of housing units is pressuring the real estate developer to provide more facilities to the final investor, pointing out that the current conditions have made the developer more flexible in adapting to market conditions, as he began to give up previous profit margins, reduce fees related to services, payment facilities, and bear Some fees, such as registration fees.
Al-Zarouni explained that the market currently includes attractive opportunities for real estate investment for individuals and developers, by purchasing ready-made units at attractive prices, but on the condition that there is sufficient liquidity to do so, amid strong expectations of a recovery in real estate demand during the next year.
And he indicated that the prices have become affordable for everyone, along with payment facilities for up to five years after handover, in addition to launching a product (lease-to-own) by some developers.
He emphasized that there are many incentives that the real estate market in Dubai needs, and they must be taken into account, with the aim of encouraging capital to enter the sector, most notably the standardization of contracts (off-plan sales), reducing real estate registration fees, reducing resale fees, and tightening controls over Ads and offers.
Real estate inventory
In turn, the Marketing Director at Select Group Real Estate, Hisham Al-Asaad, said that “real estate inventories may cause pressure on the developer, which is why alternative plans must be drawn up by developers, in order to stimulate more social segments that wish to invest in real estate. And removing obstacles facing these groups, especially with regard to the first payment, bank financing, payment plans and high service fees.
Timing is convenient
On the other hand, the CEO and head of architecture in the "Binghatti Development" company, Mohammed Binthati, said, "The time is very appropriate to invest in the real estate market in the emirate of Dubai, after prices have reached attractive levels."
He added that «it is expected that the real estate sector will recover strongly during the next year, amid improved demand to offset the increase in the current supply in the market, so those who seize the current opportunity will achieve large gains in the medium term».
Binghatti explained that the real estate sector in Dubai is one of the economic tributaries on which the emirate’s economy depends, so it provided all the required economic incentives and initiatives to maintain the attractiveness of the sector and overcome the negative effects of the "Covid-19" pandemic.
He noted that Dubai maintains the momentum of investment in it, despite the economic and financial challenges caused by the pandemic, noting that the number of real estate investments in Dubai during the year 2019 increased by 18% on an annual basis, to reach 47,000 investments, while the number of real estate investors increased by 14%. During the same year, it reached more than 34 thousand real estate investors.
He revealed that the rise in real estate investments reflects the great confidence in the emirate’s economy, pointing out that these investments led to an increase in the value of real estate transactions in Dubai to 226 billion dirhams over the past year, with an annual growth of 2.1%.
Real estate investor
For his part, CEO of "Azizi Development", Farhad Azizi, stressed that the time is ideal for the real estate investor to pump investments into the market, pointing out that the real estate developer has become realistically dealing with the real estate market, which gave additional advantages to the investor, who became the owner of (the hand The tallest now), because real estate prices in the Dubai market have reached very attractive levels to buy, in conjunction with many real estate developers reducing their profit margins, in a desire to attract more investors.
He pointed out that this realism that real estate developers began to exhibit was that they provided more facilities in relation to the down payment and payment plans, and incurred some fees, such as real estate registration fees.
He warned of the possibility of increasing prices again with the expected growth of the market in 2021, especially with the launch of the Expo 2020 Dubai, citing on this some of the comparative advantages that were given to the investor during the closing period, which declined with the improvement of the situation, which he must realize The investor, the better the situation, the smaller the chances of obtaining advantages from the developer.
He stressed that the right time to buy is now, especially with these incentives in the market, including good prices, great investment returns, attractive incentives and offers.
For his part, Chairman of the Board of Directors of Al-Waleed Investment Company, Muhammad Al-Mutawa, said, “There are many developers who do not realistically receive market demands. These are required to respond to the investor’s requests, so that the movement of the real estate sector in Dubai can be restored.” A golden period for the investor to take advantage of it, because there are on the other hand developers who provide good offers in the market.
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