They confirmed that the Corona vaccine stimulates transactions in the "sector"
Realtors: Stopping the offering of new projects that will contribute to absorbing the current supply of units
The real estate sector is one of the most important in the UAE and Dubai.
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Realtors reported that the Corona vaccine will stimulate transactions in the real estate sector, as it is an indicator to control the virus and the return of activities to normal, pointing out that the current indicators call for optimism, and that the psychology of the real estate investor has begun to improve, especially as stopping the introduction of new projects contributes to absorbing the supply Current of units.
They indicated, in statements to "Emirates Today", that the real estate sector was among the most affected by the "Corona" crisis, but real estate prices are expected to move up during the next year, supported by the growth of demand and attracting new investors, as well as the launch of events Expo 2020 Dubai.
An economic catalyst
In detail, the Chairman of the Board of Directors of the Union Real Estate Company, Khalifa Al Hammadi, said that “vaccination against the Corona virus is the most important catalyst during the present time, and it is expected that it will play a major role in the rebound of global and local economies during 2021, with the return of economic activities to Their nature ».
He pointed out that the high levels of supply of units were one of the main reasons for the decline in the real estate sector during the past years, and it is natural that the price correction process ends when the supply decreases, especially with the legislative amendments witnessed by the state, such as allowing foreigners to fully own companies and others.
Al Hammadi stressed that the real estate sector is one of the most important sectors in the UAE, especially in Dubai, and it is difficult to stop the movement of real estate development, expecting the construction movement to return again in 2021.
Recovery strategy
In turn, the Vice President of the International Union of Arab Realtors, Dr. Mahmoud Al-Burai, said, “The vaccination against the Corona virus is part of the strategy of recovery locally and globally and the beginning of the end of the spread of the Corona virus as a health crisis, the beginning of a return to normal life, the opening of aviation, tourism and the improvement of trade movement.” .
He stressed that reducing the supply would be good at this time, to enhance stability and confidence in the market, and since the current prices are the lowest in 10 years, this will be a catalyst for investors to enter the real estate market.
For his part, Director General of Marketing and Sales at Al-Rowad Real Estate Company, Alaa Masoud, said: “It is certain that vaccination against (Corona) virus is considered a lifeline from this virus and will send hope and optimism in many sectors, including the real estate sector. The virus, locally and internationally, will contribute to the return of things to normal during the new year, especially since there are important events we await, such as the Expo 2020 Dubai, which the real estate sector relies on to stimulate demand and sales.
Masoud pointed out that the prices are currently stable and suitable for all segments of society, in the event of a desire to enter the world of real estate investment or to shift to ownership instead of leasing.
The real estate market
For his part, Chairman of the Board of Directors of "W Capital", Walid Al-Zarouni, said, "The vaccination against (Covid-19) will directly affect the real estate market and will be a catalyst and a main driver for the markets during 2021, because vaccination means a state of reassurance for people and a decrease in fear of infection. HIV ».
Al-Zarouni expected that the price levels would move, with the decrease in the supply of new projects, and the balance of supply and demand equation, and this would positively affect the real estate market.
Regulations
In the same context, the Chairman of the Board of Directors of "Sahab Real Estate", Abdulaziz bin Hoyden, said that "the real estate sector is characterized by strength, durability and the ability to overcome difficulties and crises, in light of the system of laws, real estate legislation and modern regulations, and despite this there is no doubt that the real estate sector Like banks, financial markets and other strategic economic sectors, it has suffered during the year 2020 the negative effects of the spread of the emerging (Corona) virus, and the associated fears and anxieties at the level of individuals and businesses, and the slowdown and stalling of the economy in some sectors.
He added: “It is no secret to anyone, that this crisis has, on the other hand, produced enormous investment opportunities in the real estate sector, in light of a good stage of the price correction process, and we also notice stability and gradual growth in prices in conjunction with the registration of the vaccine against the Corona virus.
And I can be sure that providing the vaccine to all members of society will contribute to a boom in the economy, which is currently growing gradually, and then liquidity will move from banks to markets and the real estate sector.
He continued: «During the next year, the pricing curve will shift up again, and achieve good levels at the very least.
And do not forget the great government support for this vital sector, with the presence of attractions for the growth in demand for real estate in the country.
He stressed that in addition to the positive trend of the market due to the vaccine, real estate developers are trying to achieve a balance between supply and demand by draining the quantities of real estate supply in the market and temporarily stopping the construction of new projects, which will undoubtedly lead to an increase in prices again.
Encouraging investment
In addition, the real estate consultant, Saleh Tabakh, said that “vaccination will allow more freedom to travel, and it certainly provides reassurance that things are moving towards correction and the return of things to normal, and it also enhances confidence in general, which is the main element to encourage investment in all sectors, including the sector. Real Estate », pointing out that the trend will be for small and medium enterprises that provide a varied and distinctive supply. We must avoid repetition and introduce projects with new ideas to avoid increasing the supply that negatively affects the market.
He added, "I think that the end of next year will be an ideal period for launching new projects, which provides an opportunity for the market to be better prepared to contain new units."
Tabakh expected prices to rise significantly in the last quarter of next year, given that the impact of stopping new projects begins to emerge after the completion of the delivery of current projects that were targeting the years 2020 and 2021.
For his part, the founder and director of the "Royal Liwan" Real Estate Company, Mohamed Bouhareb, said that "there are effects of vaccination in all economic sectors, and the real estate sector in particular", expecting the real estate supply to be exhausted within two years at least, and therefore the appropriate time to offer new units is after two years at least.
He stressed that the matter is also linked to the incentives in the real estate market, pointing out that the reduction in service fees is expected to stimulate real estate investment in Dubai.
The CEO of Standard Real Estate Management, Abdul Karim Al-Mulla, said that “the start of vaccination with the Corona vaccine will have a strong impact in the sector and other economic sectors,” stressing that the positive effects in the sector are hoped to appear starting from mid-2021.
He pointed out that the market does not bear more real estate supply, and that real estate developers are required to be patient in launching new projects.
Investor psychology
The real estate developer, Chairman of the Board of Directors of Al-Waleed Investment Company, Muhammad Al-Mutawa, said that vaccination is in the interest of the economic sectors, as it will improve the psyche of investors in the market, including the real estate sector, but it takes some time, indicating that the sector is expected to move in The second half of 2021 is fine, but with prices remaining at 2020 level.
He stressed that the market must be given more incentives, the most prominent of which is the reduction in service fees, expecting that there will be momentum at the level of sales, starting from the second half of next year.
Economic activities
The CEO of "Sultan Bin Ali Al Owais" Real Estate Company, Halima Al Owais, said that "the borders between countries will be opened after a period of vaccinating individuals against (Corona), which means that economic activities will return to normal, as vaccination will not be a treatment only against the virus, but rather Against the stalemate in the economic movement caused by the virus for many sectors, including the real estate sector.
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