Despite the global pandemic that jolted the entire world, Dubai real estate still managed to produce favourable results. Initially, the construction work was halted and the purchasing power of buyers and investors was impacted. However, during the 3rd quarter of the year, signs of recovery became apparent. As per reports, 8,701 transactions worth AED 18.27 billion were recorded during this quarter.

Having said that, a lot of people still have reservations about whether or not they should invest in the Dubai property market, owing to the uncertainty regarding the COVID-19 situation. Questions such as “is it safe to buy property in Dubai” and “what does the future hold for Dubai real estate in 2021” are on everyone’s mind.

This article is going to answer these questions and shed light on the forecast for Dubai real estate in 2021. Before that, let’s take a look at some of the insights on how Dubai property market fared in 2020:

Dubai Real Estate 2020

After suffering an initial setback due to the ongoing pandemic, the market witnessed a recovery due to the timely initiatives taken by the government. The average mortgage interest was dropped to 3.7% from 5.2%. At the same time, the loan-to-value (LTV) ratio was increased for first-time buyers. The 3rd quarter witnessed an increase of 68%, vis-à-vis the value of property transfers when compared to the 2nd quarter.

Top Communities for Apartments in Dubai (in Q3, 2020) 

Primary Market Secondary Market
Community No. of Transactions Value (AED) Community No. of Transactions Value (AED)
Downtown Dubai 131 464,070,161 Dubai Marina 441 623,376,331
Dubai Creek Harbour 220 364,867,277 Downtown Dubai 253 610,106,962
Dubai Marina 173 344,679,713 Jumeirah Village Circle 343 538,811,978
MBR City 266 326,561,394 Palm Jumeirah 159 319,498,517
Business Bay 204 295,925,804 Business Bay 206 285,706,157

 Top Communities for Villas in Dubai (in Q3, 2020)

Primary Market Secondary Market
Community No. of Transactions Value (AED) Community No. of Transactions Value (AED)
Tilal Al Ghaf 428 631,740,320 Emirates Living Villas 113 483,954,080
Nad Al Shiba Third 124 303,147,600 Palm Jumeirah 39 422,136,315
Dubai Hills Estate 34 229,433,806 Nad Al Shiba Third 105 256,100,000

 
MBR City 18 217,156,007 Jumeirah Islands 64 212,163,000
Damac Hills 46 142,912,795 Arabian Ranches 1 54 191,492,500

 What is the Future of Dubai Property?

Based on the performance of the Dubai property market in the last two quarters of 2020, it is safe to say that the future looks promising for the industry in the next year. New trends will surface and the completion of various developments is expected, which will pave the way for more investments

Take a look at some of the major factors on which the future of the Dubai property market is dependent on:

Expo 2020

The year 2020 was keenly anticipated by the Dubai real estate market because of the scheduled Expo2020. This mega event was supposed to welcome around 20 million people from across the globe. However, much to the dismay of the authorities, it had to be rescheduled due to the global pandemic. The event is now slated to take place in 2021. This step has been taken to ensure global participation.

The performance of the property market of Dubai in 2021 majorly depends on the performance of this event. As millions of people are expected to attend it, the tourism sector along with the residential market can witness a boom. Property experts are speculating an increase in the rental income for the duration of the event.

Completion of Several Projects

There’s an abundance of off-plan projects in UAE available for investors. Some of them were delayed in 2020 because of the pandemic. However, the developers have sped up the work in the previous months. Resultantly, it can be expected that several of these residential projects will reach completion status in 2021.

With their completion, the supply of ready properties will increase in the market. Thus, a better equilibrium between the supply and demand will be created. This will also help companies dealing in real estate business to flourish. And more people will venture into the market.

Resumption of International Flights

Tourism easily ranks among the various industries that suffered an impact due to COVID-19 in 2020. Since Dubai is known for its tourist attractions and a significant chunk of its revenue is generated by this industry, it faced a major blow owing to the bans placed on international flights.

However, things are changing gradually now. International flights have resumed, although there are some restrictions in place. It is speculated that 2021 will see eased down restrictions, and Dubai will welcome an influx of visitors.

This is going to be an important development for Dubai’s real estate market since it relies majorly on international investors. Tourists also contribute to the success of this industry since they occupy rental, vacation homes and hotel apartments.

Is it the Right Time to Buy Property in Dubai?

Keeping the above-mentioned facts and statistics in view, yes! It is certainly the right time to buy property in Dubai. The rates are on the lower side and incentives offered by the developers and governments are still available. Therefore, if you have surplus money or funds available, you can put them to good use and invest in a real estate project in Dubai. You can hire the services of a reliable real estate agent for this purpose. They can help you locate the ideal project that has the potential to grow in terms of popularity and ROI in 2021.

A Final Word

In a nutshell, it is safe to say that the future of Dubai real estate in 2021 looks positive. With the competition between new projects, buyers will be spoilt for choices. And the launch of new residential developments will provide abundant opportunities for local and foreign investors. 

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