5 Post – COVID Norms in the Dubai Property Market
Covid – 19 played a huge role in the impact caused on the Dubai property market. There was a lot of construction work that came to a halt as well due to the restrictions and lockdown dates which were implemented by the government, which further resulted in the development of projects getting delayed. Apart from this, Expo 2020 also got rescheduled to a later year, finally taking place on the 1st of October until the 31st of March 2022 which is now, subjective to reopen on the 1st of October 2022 as District 2020.
Due to the pandemic, the performance of the Dubai property market did not meet expectations and continued to show almost zero results, in comparison to how it was doing before the pandemic. Although, fortunately, the market soon witnessed a change in the 3rd quarter. Ever since, the market has been picking up and is expected to continue the same. That particular year noticed a sale of around 71,135,094,496 DLD units, still lower to the numbers that were witnessed back in 2019. Although, keeping in mind the pandemic, these numbers were meant to be appreciated.
Post all these changes due to the pandemic, the market began to notice some upcoming trends that affected the market which were as follows:
- Better Standards of Residential Projects
It is anticipated that real estate developers would use new techniques when creating their projects in order to meet the shifting needs and desires of customers. For instance, there will be a lot of attention paid to the infrastructure of buildings so that each residential unit is roomy and has amenities like balconies, terraces, etc.
- Demands for bigger residential spaces
Before and in the early stage of the pandemic, buyers favored smaller spaces such as studios, smaller apartments and smaller living spaces due to the ease on their pockets. Although, the lockdown and the pandemic on the whole changed mindsets and people started thinking that bigger living spaces are more efficient and effective. Due to this, the demand for bigger residential spaces started increasing day by day after the pandemic.
- Sanitation and safety became key
Sanitization and safety were two of the most important aspects that were focused on, during and post the peak of the pandemic. Residential and commercial projects now have something called as disinfectant booths at the entrance. Moreover, the pandemic also ensured that each part of the property is sanitized thoroughly on a day-to-day basis, focusing on advanced safety protocols.
- Digitalisation
The pandemic aided in the digitalization of some aspects of purchasing and selling real estate. First, viewing properties virtually became the standard. Virtual property tours were already a popular practice. However, the pandemic increased its popularity. In order for potential buyers and investors to obtain a sense of the unit from the comfort of their home, developers and real estate portals started offering 3D tours of homes. Additionally, it provided customers with information about the amenities and facilities offered by the unit. In addition, several Dubai real estate and development firms now use artificial intelligence in their operations. Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) solutions are now now often used. In conclusion, it is unclear what the real estate market in Dubai will look like in the future. However, it is currently safe to assume that these tendencies in the real estate market will continue.
- The growth of Secondary Market in Dubai Real Estate
When compared to 2020, the major market’s sales value increased in 2019. In 2020, the pattern, however, shifted. While the primary market was impacted by COVID-19, the secondary market fared better. The main reason for this is that construction was halted. Off-plan enterprises were surrounded by ambiguity in relation to their rivals. As a result, buyers and investors displayed their hesitation. The 2020 sales data make this quite clear.