What To Expect In Dubai In 2020?
The rush for residential properties will reach Dubai’s highest historic level in 2020, which will keep prices and rents under pressure again this year and will attract more cost-conscious buyers due to greater affordability.
Property research companies predict that around 50,000 units will arrive in Dubai this year, most of which are due to lost deliveries expected last year. Falling prices and rents are expected to slow down this year as 2020 will be a pivotal year for Dubai’s economy and the housing market.
Real estate analysts believe that 2020 will be an essential indicator for determining where the Dubai real estate market currently stands in terms of supply and demand and for determining the direction of prices and rents in the coming years.
With around 25 million visitors expected at Expo 2020 Dubai, the wait is now starting to see if short-term visits to the Expo can become long-term residences, which will give a boost to the real estate market. And as we come to the long-awaited year of the Dubai Expo, here are some realistic forecasts from our experts.
Rent Will Increase
With the commencement of the Expo in 2020, we anticipate a further increase in rents this year and 2021. This is good news for property owners and prospective real estate investors.
New Methods Of Rent Payment
New forms of rent payment, such as monthly charges, are expected to become the norm by 2020. This is an indication that the technology industry is growing. Another plus for the Dubai economy, and this is also a major reason to invest in Dubai’s real estate.
Favorable Ownership Costs
With a wide range of deferred payment plans available in the market, the opportunities to buy a property at a low cost will attract end-users who would otherwise pay the rent. According to the Dynamic Monitor index, which tracks property prices in 42 Dubai communities, real estate has become increasingly accessible to a wider segment of the population.
Investors and owners are showing interest in buying real estate, a factor that is helping to lift the lowest markets, with November 2019 being one of the most active months of the past decade. A total of about 5,025 sales were recorded with plan registrations, or 60.8%, clearly above the monthly average for the year, 55.4%.
The Healthy Balance Between Supply And Demand
Developers will be more pragmatic when launching new projects and help create a healthy balance between supply and demand. It is likely to focus on creating the right kind of offer. This is done in line with the future aspirations of the city and its inhabitants.
Buy Off Plan
Off-plan property trends, with extremely attractive payment terms, will continue to attract new buyers.
With less than eight months to Expo 2020 Dubai, there will be a large flow of tourists, more open hotels, and lively rooms. Dubai is becoming one of the largest demographic markets when it comes to investment, and the real estate sector will have to adapt its strategies and offers to meet the needs of this audience.
Support For SMEs And Local Businesses
With Dubai’s attention to a greater diversification of the economy, it will create a stable economic environment. When local businesses start to flourish, this will become the basis for making investments in Dubai more productive for everyone. 2020 has been the ideal year to launch these initiatives.
How Will The Dubai Property Market Work And What To Expect From It?
The Dubai real estate will continue its upward trend. With prices expected to continue growing into 2021 or 2022. The economy can only keep growing, and we are witnessing persistent growth with the supply of property.
- 10-year residency visa for investors and specialists
In 2019, the government of the United Arab Emirates announced a 10-year residency visa for investors, as well as a 100% foreign property offer to businesses in the United Arab Emirates.
The 10-year visa is also valid for specialists such as engineers, doctors, and high-level students.
This could increase commercial activity and demand for real estate in the coming years.
- Real Estate Self Transaction (REST)
It should be mentioned that the Dubai Land Department has announced that it will create by 2020 a smart digital platform, called Real Estate Self Trading (REST).
The goal here is to annihilate the need for paper documentation for rental and sale of properties and help reduce costs for investors, which will help developers move from sophisticated projects to affordable models. The goal is to convert tenants into buyers and create more demand from the middle-income segment of the market.
Most likely, the Dubai property market will continue to rise beyond 2020.
There are positive signs, such as rising oil prices, growing interest from Chinese investors, recent policy changes to attract more investment and talent, and developers focusing their pay attention to the more accessible market.
That said, for investors who want to invest in real estate in Dubai, our recommendation is to delve into it fast. There are not many better options in Asia, as it currently is in Dubai.