UAE realty sector to recover strongly in post-COVID-19 era

Business Bureau, Gulf Today

The UAE real estate is one of the most important sectors in the national economy and it expected to emerge strongly in the post-COVID-19 era. The market will get strength from key factors including strong appetite, Expo 2020 and cost reduction etc. when the crisis of COVID-19 pandemic is over.

The real estate sector before COVID-19 will never be the same when the crisis is over, the same is true for all other economic sectors, said a real estate expert Walid Al-Zarouni.

Al Zarouni identified factors important to market recovery and growth and called on the leading players in the sector to prepare from now on, for the new era after the pandemic, and try to map out the future of the sector after containing the outbreak of this epidemic.

“It is expected that the appetite of real estate investors will be stronger significantly in light of the decline in prices and the rise of offers, which contribute to boosting the investors’ and residents’ interests alike, in the real estate market,” said Al Zarouni, heads the ‘W Capital’ Real Estate Brokerage Company.

He said that the second factor is ‘work from home’ trend will become an essential part of doing business in the post-COVID-19 world in general, while real estate companies continue to benefit from the lessons they have learned from this trend to improve their business efficiency and reduce costs, as well as the decline in office rents, travel and organising events.

Al Zarouni said that the trends of real estate marketing will change also, in line with adopting new technologies. The COVID-19 outbreak challenges created good opportunities to change work patterns and put forward innovative marketing ideas that attract customers. Developers will be pleased to present their products in a new way through the “social media” channels, and the use of virtual reality and augmented reality technologies to give the customers a realistic purchasing experience.

He explained that as the real estate sector is one of the top winners of the government facilities of support, which included large unprecedented packages of fee exemptions or reduction on the sales and rental operations. These ensure the sector’s continuity despite the repercussions of the pandemic crisis, and therefore many of the costs that the real estate investor pays will disappear or have already disappeared.

He said that there will be a frantic race between companies and developers to attract buyers to the market again by special and attractive promotional offers. There will be unprecedented price cuts and various facilities such as easy long-term payment plans, no down payment, fee waivers. The local investor will be the first winner in particular after the decline in tourists’ numbers for a long time.

With attractive real estate prices, buyers will be encouraged in all market segments, i.e. residential, commercial, hospitality or administrative units.

Al Zarouni said that COVID-19 challenges to real estate companies will enforce large partnership deals between developers and companies in the private and public sectors, to finance real estate deals in an affordable manner guaranteed by salaries.

“The postponing of the Dubai International Expo to year 2021 will grant new prospects for real estate companies, besides it will give them an outlet to leeway from the pandemic damages, and give them an opportunity to complete the planned  projects for 2020 and 2021. This will be boosted by strong demand in the projects planned for hand over in 2021,” he added.

Real estate companies undergo a demand for rental properties ending in ownership, which provides greater options for most areas and price range. Although the property ownership period is 99 years, it can be less in some cases, and it is noted that there is a real demand for flexible ownership programs that meet the aspirations and needs of clients.

The end of COVID-19 crisis, coupled with the high level of innovation and the creation of new jobs that are alternatives to traditional jobs, which push employees to develop and diversify their skills, or use their original skills in other jobs, Fresh blood will be pumped into the sector that boost  development and push it forward.

The COVID-19 crisis has contributed to increasing investor awareness towards investment in the real estate sector as a store of value and cash coffer , as well as a source of fixed  income, and an ideal means for growth of investments in the long run.