Planning to invest in real estate in the UAE?
Allegoria Properties will guide you through one of the most popular suburbs of Dubai and give the latest predictions from the market.
Dubailand is 3 million sq. ft. Residential, Entertainment, and Tourist destination developed by Dubai Properties a subsidiary of Dubai Holding.
This marvellous region was launched to be the all-in-one destination to live, work, entertain and rest.
Located along Sheikh Mohammed Bin Zayed Road (E311) Dubailand is divided into different parts. Residential communities include The Villa, Serena, Mudon, DAMAC Hills, Dubai Hills, Arabian Ranches, Arabella, Villanova, La Quinta, Amaranta, Remraam, and other areas.
Cut the long story short: Dubailand is a city inside a city.
Dubailand construction started in 2003 but interrupted several times due to the financial crisis. It was one of the most popular areas for investing by 2017 with 13 % of requests, followed by such areas as Dubai Marina/Jumeirah Beach Residence (JBR), Downtown Dubai, Barsha Heights, and Silicon Oasis.
The suburb has faced many challenges within the last 17 years and was set on hold several times. Despite the criticism about setting all those projects in the middle of a desert without roads and transportation, Dubailand grew and became one of the most popular areas to live and visit.
Covid19 Impact on the Real Estate
Let’s explore if it is relevant to invest in real estate, particularly villas and townhouses in 2021. We present a brief look at the impact of the Covid19 pandemic on the Dubai market.
According to the real estate service company JLL’s Global Real Estate Transparency Index, Dubai is one of the global top improvers. However, the UAE real estate market was straggling long before the pandemic. As mentioned in Infomineo, one of the main reasons has always been the ex-pats. They tend to return to their home countries sooner or later and don’t find it necessary to invest in properties. Another considerable reason is the job loss and salary cut during the pandemic.
Dana Salbak, head of MENA research at JLL, is in broad agreement. “In the UAE, particularly in Dubai, the market was already in the late downturn stage of the cycle for all asset classes. Even before Covid-19, rents were bottoming out for residential, office, retail, and hospitality segments. Particularly, for the residential sector, we assumed that we are close to the bottom”.
Is It a Proper Time to Invest?
Considering the profitable situation to invest across the UAE, experts and market researchers are trying to find solutions and predict the real estate market condition in 2021,
Some experts are sure that the market will fully recover by 2022. The reasons are the government decisions of obtaining properties as well as the lower percentage of the mortgage.
By the summer of 2021, Dubai real estate market will possibly recover about 50%. This depends on the fact of being open for tourism, the return of employees, and the hiring of new ex-pats.
Indeed, as the only country open for tourism, there are chances of having a high revenue from the second house or so-called ‘holiday houses’. The need to work from home set the idea of purchasing villas or townhouses away from the noisy city center.
Predictions allow us to think that the foreigners, who have spent a long time in lockdown, would rather invest in holiday homes and continue working remotely.
Villas and townhouses in Dubai are spacious, luxurious, and most importantly, they are brand new. The investors have the freedom to upgrade or renovate the interior design according to their preferences. Let’s not forget about the perfect sunny weather all year round.
2021 is just onboard, market predictions may differ and reality may not meet the expectations. However, the UAE government is doing the best possible to recover the economic pressure and provide a better living for the residents and tourists.
As experts in real estate, Allegoria Properties agents offer their service in finding the relevant house. We do our best to meet each client’s needs and requirements in Dubailand and other areas of Dubai.