It’s certainly a huge achievement if you are an owner of residential property in Dubai. Even if it is a small flat or studio, you still deserve a pat on your back because buying a property in this part of the world is certainly a big feat.

The Impact of COVID-19 on The Dubai Property Market

As the Dubai property market is considered a hot investment hub, prices are on the higher side. Even smaller units, such as studios, cost a lot when compared to other emirates or cities. However, the pandemic changed a lot of things, and this includes the condition of the Dubai property market as well. Prices saw a dip and transactions were impacted a great deal. During the second quarter of 2020, investors and buyers were reluctant to buy property in Dubai.

To deal with the crisis, the government took many initiatives. It joined hands with the property developers and offered several incentives to buyers and investors. There were rebates for first-time property buyers as well. This was done to bring more people to the Dubai property market.

These efforts proved fruitful and buyers eventually returned to the Dubai property market. And now, based on the Q2 Dubai report analysis, it’s safe to say that the market is officially on the road to recovery. There has been a significant increase in both the number of transactions and property prices as compared to the last year.  

The Impact of Current Status of the Dubai Property Market on My Home

As a property owner, be it Dubai or anywhere else in the world, you are surely going to be concerned about how the current conditions impact the value of your home. And it’s perfectly okay to feel this way; after all, it’s your hard-earned money and one of the biggest investments of your life.  

With that said, let’s analyse the effect of the Dubai property market on your home:

Increase or Decrease in Value of the Home

There are two major impacts of the current status on residential property; an increase or decrease in the value. A third option of the value remaining the same is also a possibility, but that rarely comes into the picture as there is always going to be a minor or major increase.

Now the question arises, whether my home’s value has increased or decreased. This depends on many factors. Let’s take a look at them:

The Location

The location of property happens to be one of the biggest factors that impact its value. If your home is located in the following communities, you can expect an increase in its value:

  • Jumeirah Village Circle (JVC)
  • Jumeirah Lake Towers (JLT)
  • Dubai Marina
  • Dubai Silicon Oasis
  • Dubai Sports City
  • International City
  • Downtown Dubai
  • Business Bay
  • Palm Jumeirah
  • Jumeirah Beach Residence (JBR)
  • Dubailand
  • Mohammed bin Rashid (MBR) City
  • Akoya Oxygen
  • The Springs
  • Mudon
  • Arabian Ranches
  • Dubai Hills Estate
  • Jumeirah Golf Estate

The aforementioned communities produced promising yields as per the Q1 and Q2 reports of 2021. Some of these are more suitable for villas, while others have apartments in abundance.  

Type of Property

This is another major contributing factor when determining the value of a property in the Dubai property market. You can find different types of residential properties in the emirate, from cosy studios to ultra-exclusive penthouses and villas. However, taking into account the current conditions, it’s the bigger spaces that are attracting buyers.

Statistics reveal that 2,284 villas were sold during the second quarter of 2021. This figure was 63.1% and 275% higher when compared to Q1, 202 and Q2, 2021, respectively. The collective worth of these transactions was approximately AED 5.4 billion.

This clearly shows that both the demand and worth of villas are on the rise during the current times. So, if you own a villa or bigger living space in Dubai, there’s a good chance that your property has increased in terms of value.

Age and Condition of the Property

The demand for old properties in Dubai has been shrinking even before the pandemic hit us. Most older apartment buildings in the emirate possess mediocre architectural values. Furthermore, they do not come with modern amenities. This is why their demand and value have been on the decline.

However, if you own a housing unit in one of the newer developments, an increase in the value can be anticipated.

Other than the age of the house, the duration of your ownership of the said property also matters here. For example, if you purchased the home last year when the prices were on the lower side, there are high chances that the prices currently will be higher than what you paid.

Another important factor is the condition of the home. If the house is present in a well-kempt condition with no major repair or overhauling work required, its value is going to be on the higher side.

Available Facilities and Amenities

Amenities and facilities play a significant role in defining the lifestyle a property offers. A growing number of people prioritise comfort and convenience over other things when looking for a residential property. This is why the latest residential properties come with modern luxuries; thus, their prices are higher. So, if you own a property that has a swimming pool, lawn, terrace/balcony and other state-of-the-art amenities, you can expect your property to be priced higher.

The Takeaway

Property prices in Dubai have certainly increased as compared to last year. However, they are still not on par with pre-COVID levels. This is why experts believe it to be the best time to invest in the Dubai property market. The prices are expected to increase in coming times. So, by buying a property now, you will be in good condition to earn ROI.

So, if you have sufficient capital and are looking for an investment opportunity, nothing can be better than buying a property in Dubai. And for this, Zoom Property has got you covered. We have the best property listings all over the emirate. You can now access these listings quite conveniently using our mobile application as well. 

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