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How Dubai immunized its real estate from the pandemic?
Walid Al Zarouni
January 11, 2021
The Emirate of Dubai always proves, with the insight of its usual leaders, that it is always ready to seize opportunities from the womb of the crises of global events, no matter how difficult they are, and even turn them in their favor, and this has often been practically translated on the ground, and this is what recently appeared in the crisis of "Covid-19" that forced All world economies are at a near complete standstill.
It is truly Dubai that follows the approach of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in transforming crises into opportunities and bringing about positive and sustainable changes in all sectors, as it succeeded in containing the consequences of the pandemic on its real estate sector and achieving a gradual recovery. And looking with optimism to the future after "Covid-19".
This success did not come by chance, as the sure way to success was the proactive measures taken by the rational government that enabled the real estate sector and the rest of the various economic activities in the emirate to cross the crisis peacefully, and this also helped speed recovery and return to normal economic activity, in addition to taking a number of Actions and launching packages of initiatives to reduce the effects of the pandemic.
The government initiatives and the incentive packages they contained were the first impetus to achieve further recovery and help the real estate market in the emirate to continue the upward trend, and the sector was among the most beneficiaries of the facilities package in conjunction with the moves of government precautionary measures taken by the state to mitigate the repercussions of the pandemic, which It gave the developers a huge push forward to complete their business as planned.
This is in addition to the important pre-emptive measures approved by the Central Bank, represented by increasing the ratio of mortgage loan to property value for first-time real estate buyers.
The world-class infrastructure, digital transformation plans and technological advancement also had a large share of providing the necessary immunity to the real estate sector during the crisis by continuing to provide all government and private services, all of which contributed greatly to mitigating the expected impact of the pandemic on the real estate sector.
In addition to several other factors, we mention, for example, but not limited to, the existence of transparent legislation that ensured the strengthening of confidence among investors at all levels and played a prominent role in containing the crisis in addition to the continued financing and lending by local banks, despite the pandemic, as they are still providing loans and offering interest rates. Low, which is an additional incentive for likely buyers, in addition to diversifying offers to suit different segments, and providing flexible payment plans to attract new buyers, as the pandemic has contributed to motivating developers to reduce prices and support the buyer with various facilities.
Dubai is considered ready by its ability and potential for any drastic changes that may occur in the real estate development industry in the post-pandemic era in terms of residential designs within its own scope, among which are the designs that adopt the idea of "healthy construction" that uses natural light, good ventilation, as well as the application of strategies. Resistant to germs and other recent innovations.
The real estate market in Dubai is currently witnessing positive rebound patterns in the form of the letter (V), which are characterized by a rapid rise after the decline, to return to the levels of transactions in February and early March 2020.
Chairman of the Board of Directors of "W Capital" real estate brokerage.
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