Short term rental market has suffered greatly due to the outbreak of Covid-19 which has adversely affected and shut down travel and tourism which are a major part of increasing the economy of the country. This pandemic situation not only influences the UAE property trend but it is appearing across the globe. The UAE is popular for tourism and it is undeniably one of the great contributors to its economy.
In 2019 it is stated that tourism contributed 11.5% to the overall GDP, with about 2.3 million visitors traveling for business purposes. After the successful covid-19 vaccination program once again it gives hope for the tourism industry to return to a normal routine. In August 2021, market activity exceeded Dh 88 billion while some places have had double-digit growth in the recent year, Reuter stated that in 2022 price would be increased by 2.5percent. And would go down from their previous estimate of 2.8 percent.
Growing Trend of Property Purchasing:Due to slow growth, one of the keys, the trend of property in UAE increased significantly. Particularly in the United Kingdom most UAE citizens are trying to invest their property outside of the nation. Over the past ten years, housing prices in the UK have been growing, which means it is not slowing down. That is why UAE investors are interested in buying property in the UK.
Currently, Property Finder statistics stated that, as the UAE's economy recovers from the coronavirus, Dubai's property market has seen a steady increase in the first half of the year compared to the same period in 2020.
From January to June 2021, high sale transaction volumes accounted for a strong first half of 2021 and the total transaction is 27,373 worth AED 61.97 billion which is equal to a $16.89 billion of 40.2 percent increase in volume when compared to H2 2020.
Expert Predictions about Real Estate:It is predicted by experts that Dubai’s housing market will be cultivated in the second half of 2021. Covid-19 vaccination is one of the best programs to mitigate the negative impact of the pandemic on economic growth. Analysts and specialists explained that the villa category is outperforming apartments, and optimistic feelings will increase property prices by up to 5% between July and December this year.
Haider Tuaima, head of real estate analysis at ValuStrat, said that “National vaccination program encourages market sentiment”. He Also claims that; "housing prices hovering around Dh 900 per square foot and banks offering record-low borrowing rates along with a larger LTV of up to 85%, climbing on the property ladder has become more accessible,"
Latest sales Transactions:According to the latest figures from the real estate portal Property Finder, Dubai had 27,373 transactions totaling Dh61.97 billion in the first half of 2021. In 2020, 35,041 sales transactions totaling Dh71.87 billion were recorded. This is the representation of the strongest real estate performance in terms of sales transactions in the previous eight years. It can be realized that the market is bouncing back, it has been trending across the board. The price of the city jumped 1.3 percent this March. We haven't had a year-over-year price hike since early 2015.
Investors Investment Interests in UAE:Prices have risen to 7% since the market bottomed out in November 2020. Ayman Youssef, vice-president of Coldwell Banker UAE reported to Khaleej Times, the mood has improved in Dubai as a result of the world's attention to the emirate's handling of the Covid-19 crisis that is why many high-end purchasers are considering Dubai as a potential investment.
Secondly due to the attractive prices and pandemic control through vaccination and other SOP’s we observed regional and international purchasers moving to Dubai in the luxury market. In Dubai, the luxury category is experiencing a historic period and properties are worth over Dh10 million and have a share of 2.5 percent Youssef said that; “In the first half of 2021 the market was on the mend which resulted in an inordinate result”. However, moderate growth is noted in the second half of the year, with price increases ranging from 3% to 5% citywide from July to December 2021”.