They confirmed the existence of a tangible demand for villas, luxury units and waterfront properties
Developers and experts: The approach of Expo 2020 supports the rise in Dubai real estate prices
The timing is ideal now to seize the opportunities available in the Dubai real estate market.
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In a poll, developers and real estate experts expected, in a poll, about the expectations of the real estate market in the period before the launch of the Expo 2020 Dubai, a gradual rise in real estate prices in Dubai, in conjunction with the proximity of the international event, which remains to be held for about 156 days only.
They indicated to Emirates Today that some categories of housing units have already started the actual movement, pointing out that developers have started to raise the prices of villas, stressing that the timing is ideal now to seize some opportunities, especially with good offers in the market.
Demand growth
In detail, the Chairman of the Board of Directors of "Al-Waleed Investment Company", Muhammad Al-Mutawa, expected that "the real estate market will witness a hot summer in terms of demand growth ahead of (Expo 2020 Dubai)," explaining that there is a large movement on villas and luxury units.
Al-Mutawa said: "If the market continues in this performance, and control over (Corona) is complete, then there will be a big recovery before (Expo), and the sector will record strong indicators."
For his part, Chairman of the Board of Directors of the Union Real Estate Company, Khalifa Al Hammadi, said: “We have seen a remarkable improvement in prices and demand, especially for villas, and the demand for residential units overlooking the waterfront has also increased.
As for the areas that are far from the main city centers, there are slight positive price movements. ”
He added, "In general, (Expo) is considered one of the most important factors supporting the sector, in terms of increasing demand and reducing supply, and this encourages a recovery that gradually attracts investments."
Slightly high
In addition, the CEO of Binghatti Real Estate Development Company, Mohamed Binghatti, expected a slight increase in real estate prices, especially in villas, and also in some different areas of residential apartments, such as the city center, which is witnessing sales growth better than their levels six months ago.
Binghatti added that the new projects are somewhat low, and this helps increase demand and a gradual rise in prices.
In turn, the head of "On Plan Real Estate", Ahmed Al-Dawla, said, "The situation of the real estate market is constantly improving, and will record a strong recovery during the current year, with the support of Expo 2020 Dubai," adding that the prices of villas and "townhouses" have witnessed Rises are noticeable, and rents are starting to rise in most areas.
On the prices of residential apartments, the state added that “the situation is balanced, as it witnessed a slight increase in rents. As for selling prices, prices began to rise due to the lack of supply in the market, which was affected by the real estate developer’s obligation to deliver the project in a certain period, and deposit 50% of The value of the project in the escrow account, which created obstacles for small developers, so that the matter became limited to developers with high liquidity ».
The state indicated that rents began to rise in apartments, not only because of the proximity of the Expo, but also because of the incentive initiatives of the Dubai government, its success in controlling the pandemic, and the return of tourism and travel in a tangible way.
Demand improved
In a related context, Walid Al-Zarouni, president of W Capital Real Estate Company, said that “real estate prices in Dubai have started to witness a noticeable increase since the beginning of this year, amid improved demand, recovery from the repercussions of the pandemic, and anticipation of the launch date of Expo 2020 Dubai.” .
Al-Zarouni pointed out that the "exhibition" would achieve high levels of attraction for inbound tourism, which would greatly support the demand for hotel apartments, and increase occupancy rates to large levels, thus enhancing the investment return.
He pointed out that the imminent launch of the exhibition activities affects the pricing in the market, as some residential groups have begun to move up, especially the villa sector, which has risen in most of the projects under construction in Dubai.
He added: “It is expected that the developers, in conjunction with the improvement of prices, will change the plan of the payment period, for example, it could become three years instead of five years,” noting that the expected price increase will contribute to compensating for the losses during the year of the pandemic.
He pointed out that the speed of vaccinations against the virus is one of the most important factors for the success of organizing the exhibition "Expo 2020 Dubai", as vaccinations against "Corona" have become among the priorities of individuals to travel around the world.
Al-Zarouni indicated that the investment return has now reached levels of 8%, and is expected to rise above 9% at the height of the exhibition, with the recovery in demand in Dubai.
He pointed out that the real estate market in Dubai witnessed, last March, the second highest real estate behavior in four years (specifically since February 2017), after it recorded 6,590 transactions worth 22.9 billion dirhams, after attracting 5,683 new investors, which reflects the attractive opportunities and positive expectations. For the year 2021.
Market recovery
For his part, Director General of Marketing and Sales at Al-Rowad Real Estate Company, Alaa Masoud, said that “market data in the first quarter of 2021 heralded the revival of the real estate market in Dubai before the launch of Expo 2020 Dubai”, stressing the positive role of government measures in dealing with The "Covid-19" pandemic, in support of the economy and vital sectors, to overcome the associated repercussions.
He stressed that there is a demand for ready apartments, and indeed there are a large number of projects that will be delivered in the period before the launch of the exhibition, along with attractive real estate offers for investment by developers, and payment plans of up to 10 years.
He pointed out that, indeed, there are some residential groups that have already begun to move, noting that a number of developers have started to raise villa prices.
High efficiency
For his part, the real estate expert, Muhannad Al-Wadi, said, “The UAE has dealt very efficiently with the (Covid-19) pandemic, which provided great support for the economic sectors as a whole, and the real estate sector in particular,” adding that the performance of the real estate sector in the first quarter of 2021 was record, and promises That this year will be a "year of opportunity," it is expected that the recovery will continue in the second quarter, and record the same pace of demand growth.
He stated that the monetary policy that was put in place to support the economic recovery made it easier for the final buyer to obtain loans with lower payments and appropriate interest rates. The current policies are likely to support the pace of purchases until the last quarter of this year, in conjunction with the launch of Expo 2020 Dubai.
Al-Wadi expects that the exhibition will coincide with a strong start at all economic levels, with the risks of contracting the virus minimized, so investors should seize the available opportunities.
Positive moves
In the same context, the CEO of Standard Real Estate, Abdul Karim Al-Mulla, predicted that “movements in real estate prices will be positive, and tend to rise before Expo 2020 Dubai, thanks to several factors, most notably the increase in vaccinations against the (Covid-19) virus, And the country's success in supporting the recovery process from the pandemic, in addition to providing golden residences that encourage investors to buy real estate before (Expo).
Al-Mulla pointed out that the law of foreign ownership of companies in full is a catalyst also for the sector, and it attracts a large segment of investors, pointing out that the prices are currently appropriate and within the reach of many, and encourages buying and taking advantage of the opportunities available in the real estate sector, explaining that the Dubai government has reduced fees. And it supports programs to revitalize trade, industry and economic sectors as a whole, providing the necessary support to the real estate sector.
In turn, the General Manager of "Green Yard Real Estate Development", Eng. Mahmoud Awwad, affirmed that "the real estate sector in the country is waiting for a good qualitative leap, with the launch of the Expo 2020 Dubai exhibition nearing, and the emirate’s endeavor to attract new foreign investments, which will open new horizons for growth. The real estate sector completely, creating more demand for residential units, as well as investors seeking to seize the attractive opportunities in 2021 ».
Awwad added, "The real estate sector in the UAE is betting on a record recovery during 2021 and 2022, especially with the return of economic activities, and confirmation that they will go on the road to recovery after the closure due to the Corona pandemic," stressing that the real estate market is on a date with great momentum in the coming period, For several reasons, including the exhibition «Expo 2020 Dubai», which will start in the beginning of next October until the end of March of 2022, and will open great and new horizons globally for the Emirates, while the international exhibition shows the world the potential of Dubai and the UAE, the strength of its infrastructure, and the legislation that protect The rights of all parties, the opportunities provided by the city, its ability to organize large international conferences, and its global outlets, such as Dubai International Airport and Jebel Ali Port.
Awwad expected a revival in the market, with the launch of the exhibition "Expo 2020 Dubai" nearing, as the exhibition is one of the largest international events, which is held every five years, in which governmental bodies, institutions and international companies participate to promote their achievements, products, ideas, innovations and reputation .
Gradual recovery
Halima Al Owais, CEO of Sultan Bin Ali Al Owais Real Estate Company, said that “with the approaching launch date of (Expo 2020 Dubai), the real estate sector is witnessing a gradual recovery, and its indicators have started since the beginning of this year,” adding that “since the announcement of the exhibition, there A positive impact on the market, which inflated in some stages before it was corrected. During the last period, there has been a relative stability in prices, and great confidence in the real estate market, after a period of up and down fluctuations.
Varying increases
The real estate consultant, Mohamed Al-Hafiti, said that «there is an increase in real estate prices in varying proportions, and this increase came with the support of a set of positive factors, most notably the success of countries in attracting tourists and the successful publicity of the Expo».
Al-Hafiti stressed that “considering Dubai among the safest in the world, especially with regard to the Coronavirus, in light of the spread of vaccinations and precautionary measures, also boosts demand, and thus raises real estate prices, especially luxury.”
• "The exhibition" will achieve high levels of attraction for inbound tourism, which will support the demand for hotel apartments.
• “Downtown” is witnessing a growth in sales better than its levels six months ago.
• The price index for some categories of housing units is moving up ... and developers have raised the prices of villas.
• Decline in new projects supports demand and the gradual rise in prices.
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