The impact of COVID-19 on the Dubai real estate industry in 2020 Vs 2022.
The year 2020 was definitely a real of great challenges. It faced a virus that is new to humanity a large. We had to stay home and not meet even our nearest and dearest. Some of us lost people along the way. Others survived stronger than ever before. In either case, we noticed that the pandemic hit the economy hard all over the world. The real estate market was no exception. Though it was blooming in UAE before, it took a hard curve to the worse but only to start blooming again in the years after! Surprisingly, the pandemic had some good effects on the field after all. If you are wondering how and why keep reading to find your answers in our lines.
General overview of the market in 2020
Going back in time to the year 2020 is not a pleasant journey for many. However, we need to understand the effects the pandemic had on the market back then to be able to analyze the factors that led it to bloom in the latter two years. In 2020, we all had to stay home during the lockdown. Some lost their jobs and suffered really bad times. With the ban on flights, no more tourists were visiting Dubai, and no more people coming to search for work opportunities. These factors led to a great decrease in the demand for property. The general view was gloomy and dull and many investors gave up on the idea of renting or buying any properties in Dubai. Little did we know by then that the industry will soon witness a great bloom!
A new resurgence in the market in 2022
That gloomy picture soon got brighter in 2022. As the restrictions of the pandemic began to be reduced with the pandemic subsiding, tourists and job seekers flooded into the country! Many now started thinking about settling in Dubai as it is one of the safest cities in the world that holds great promising opportunities for hardworking ambitious people. This did not pass unnoticed by the investors. They knew that the market can provide stable and rewarding investments. Yet, several factors contributed to such a bloom, which we are going to uncover now.
Factors that lead the real estate market to resurge
To encourage people to start investing in the domain that was almost forsaken in the year 2020, the government took some important measures. Some of the most important of these measures were reducing transaction fees, waiving penalties, and introducing long-term visas for investors. Additionally, it became easier for foreigners to buy properties as some regulations have become more tolerating, especially in designated areas where they can own 100% of the property. This action has boosted foreign investment and made it simpler for foreigners to engage in real estate in the city.
This exhibition was awaited by the whole world. When Dubai removed the restrictions, the number of visitors exceeded the expected especially with certain measures taken by the government such as reducing the costs of visas and imposing excellent safety preparations. The number of people who now wanted to rent a property, though for short periods, doubled, tripled and kept increasing.
With the pandemic taking over the whole scene, people started looking for alternative income. Some figured out that the best can be working online. Even after the pandemic began to subside, they continued working online. They found it more productive and time-saving. They no longer have to spend hours on the road and can have more time for their families. Because Dubai makes a desirable location for working remotely, more people started seeking to rent and buy properties there.
Demand for bigger homes
A rise in the desire for bigger homes and more outdoor space has also been brought on by the pandemic. Larger homes with more room for outdoor pursuits and home offices were in demand. In response to this demand, developers have introduced larger, more outdoor-oriented houses in the Dubai real estate market.
It is true the pandemic has been a great challenge for humanity at large. Yet, the real estate market in Dubai succeeded at overcoming it and blooming again. The measures taken by the government to improve the investment process, the safety Dubai promises people living there, and the great opportunities that this city holds, are all factors that helped the market flourish and improve. Now, it is attracting more investors than ever before. Have you ever thought about investing in a property in Dubai? Why do you think this is a good investment? What are the challenges that you think you might face? Share your views in the comment section down below. As is always the case, we cannot wait to hear from you all.