Dubai’s real estate market was discovered by foreign investors at the latter end of the 2000s. In 1990, what is today known as the luxury capital of the Middle East was only a large expanse of desert land? Construction began and by 2007, some of the world’s amazing structures had been completed with the foundation of others being laid. It was during this era that foreigners began to see the investment forecasts of the city and began investing in it. As a result, the value of real estate climaxed up until 2014 when it suffered a steep fall.
According to Yousef Saba and Lisa Barrington of the Routers, the fall in the value of the real estate is a result of supply exceeding the demands, thereby leading to a fall in the prices for rentals and even purchase. This decline continued for about 6 years, reaching up to a 12% decline in real estate.
However, the market is taking a new turn now; a trend that was motivated by post-pandemic panic and even the covid 19 lockdown.
How the pandemic affected the value of real estate in the various sub-sectors.
ü Effects on the residential sector: The residential sector benefited most from the pandemic. After experiencing months indoors, reports show that people are investing in more luxurious homes with beach fronts and lovely views. This is understandable, after being stuck in a 3 bedroom apartment, one would only wish that he had a larger, more comfortable, and spacious apartment. As a result, properties for sale in Palm Jumeirah and other strategic locations with beach fronts are selling out quickly (leading to an increase in their prices for up to 30%). The pandemic may have affected the sales market positively, but that means that many rental buildings will be left vacant, and that may, in the long run, cause their prices to plummet.
ü Effects on commercial real estate: Unlike the residential real estate category which has improved tremendously, commercial real estate is facing a drawback. Many businesses/ start-ups did not survive the long lockdown and many more have now learned to work remotely from home, leading to the surplus of vacancies in this area. Albeit, there is light at the end of the tunnel because companies are likewise sourcing for a larger workspace that will allow social distancing.
How Government Policies Contributes to the value of the real estate
The UAE is currently hosting Expo 2020 in Dubai and has opened its gates to foreign visitation regardless of the covid threats. Rather, than restrict entry into the country, it has intensified its vaccination procedures. There is no doubt that an economy that thrives on tourism cannot continue to shut its doors to tourists. Also, the country has reduced the bureaucracy attached to the visa application process and even gives incentives to intended homeowners.
What does all of this have to do with me?
As a homeowner, you may be wondering how any of these is your business/ why they should be of concern. But guess what? They are. A common denominator in all of the sub-topics discussed above is that the real estate market determines the value of the real estate. According to Ax Capital, real estate is regulated and managed by the laws, policies, and positions of key players in the market.
The Dubai property market determines the price and the value of your property as a homeowner. Should you decide to sell, mortgage, rent, or give out the property one way or another, the market would impact it by determining the price to a large extent.
As it is now, the market is rising due to the recent policies, the expo 2020 and other factors such that experts project that the rise in value of real estate is destined to stay long term. The question, therefore, is how well your home is positioned in the market.
Tiles for walls are more than just practical elements of your home interiors—they are design statements that bring both beauty and functionality to your spaces. Have you ever wondered how a simple change in wall tiles can transform an entire room? With endless options in materials, textures, and designs, tiles can enhance any room, from […]
Creating the perfect wardrobe design for your bedroom interiors can feel like a challenging puzzle. After all, this piece of furniture isn’t just for storing clothes – it’s also a defining feature of your room’s style and a key element of organization. It’s not just a practical necessity; it’s also an essential element that contributes […]
Given a marble’s beauty and timelessness, the variety and types of marble are extensive and boundless in the modern world. Different types exhibit different colors, patterns, and textures based on their origin. That being said, selecting the right type and variety that suits your space is crucial to justify the beauty of marble. Regardless of […]
Marble bathroom designs transform your bathroom interiors to a great extent, considering marble’s purity, shine, and grace. With bold veining, rich texture, and different colorations, marble can transform an ordinary bathroom into a different level of refined relaxation. From sleek, minimalistic designs to strong statement pieces, marble suits your styles, rendered to be equally complimentary […]
When you walk into a room, what’s the first thing you notice in the interiors? The furniture, the walls, or the ceiling? Often overlooked, the ceiling plays a significant role in defining the ambiance of a room. If you’re looking to add some flair, sophistication, or a modern touch to your living room, false ceiling […]
As soon as you enter a space, walls define its boundary, volume, style, and experience. Interior wall designs are crucial in determining the mood and aesthetic appeal of an interior space. To create a one-of-a-kind space for occupants and guests, the interplay of interior wall designs and their volume is key. To evoke a feeling […]
In small bathroom layouts, every square inch counts. Without a thoughtful plan, a small space can quickly become cluttered, making it feel even more cramped. The right bathroom layout not only enhances functionality in interiors but also creates a sense of openness. Think about it—how frustrating is it to move around a bathroom where the […]
Do you enjoy keeping games, books, and ornaments in your hallway? This carefully chosen collection of living room storage ideas will complement your interior decor and be suitable for Indian homes. These are chosen from a shortlist of different product designers’ living room storage designs on Archioo. The following living room storage concepts have been […]
Creating a TV unit design in bedroom requires the right balance of functionality, optimization, and aesthetics to enhance the space. Apart from cots and wardrobes, TV units in a bedroom play a pivotal role in captivating an individual’s attention. Keeping in mind, the design theme and concept of your home, the TV unit design in […]
Are you worried about the small space left in your kitchen? In parallel kitchen design, the layout divides the kitchen into two parallel counters. Including the parallel kitchen design, the work sequence includes store, wash, prepare, cook, serve, eat, and be followed by clear and wash up. From the sequences, we learn that three appliances […]