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Invest during a crisis ... and reap results while you recover

PNC Menon

October 22, 2020

Nearly a year after the start of the global spread of the "Covid-19" epidemic, many of us are still facing the challenges and turmoil this year.

As uncertainty persists, there is a bright side of opportunity. Simple basic principles of investment dictate that you buy at competitive prices, then sell at high prices.

Historically speaking, real estate is characterized by its permanent attractiveness, and when crises come, the markets are preparing for the worst, but once the crisis passes and optimism returns, real estate prices will return to stability as they were, and Dubai has always been distinguished by its strong basic components in the long run, thanks to its population growth and the development of its infrastructure Outstanding, world-class healthcare services and education.

Compared to similar global cities, Dubai’s affordability is excellent. It is worth noting the UBS Global Real Estate Bubble Index, which ranked Dubai as “fair value”, compared to other cities such as New York, London and Paris.

Real estate can play a major role in the region’s economic recovery even during crises, as there is latent demand for the Dubai real estate market.

The real estate movement rebounded last summer as a result of buyers' ambition to take advantage of competitive prices, quality and distinctive real estate locations.

And there is no better time than this to take advantage of the market, as investors should be smart, and identify specific assets, in particular.

Villas in prime locations that are currently in short supply are witnessing great demand from all Dubai's communities.

According to GLL's Global Real Estate Transparency Index, Dubai is one of the best cities witnessing global improvement, thanks to a combination of government initiatives, improved regulatory procedures, and the increasing development of the dynamic real estate technology sector.

Dubai is also one of the most lucrative investment locations in the world, providing on average more than 7% of total rental returns.

On the other hand, the Dubai real estate market received more support as a result of the Dubai Property and Land Department providing real estate transactions services via the Internet, through the economic stimulus package provided by the Central Bank, and through the appropriate payment options provided by the developers in the current times.

Recently, we witnessed the announcement of the first-of-its-kind retirement visa program in Dubai, which strengthened the UAE's position as a new luxury retirement destination, opening the door to a new type of investor.

As we move forward in the face of the Corona epidemic, we will certainly see a light at the end of this tunnel as we head towards reaching the new normal.

As for Dubai, its strong fundamentals will contribute to maintaining real estate demand in the UAE, as it has always supported the market even during periods of turmoil, and in the future it will also contribute to supporting and maintaining price levels.

Founder and Chairman of "Sobha Real Estate"