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Real estate will remain a vital economic indicator in the post-coronavirus era in the UAE. But the sector will never be the same when the crisis gets over, thanks to 10 key factors that will help in the speedy recovery of the country’s property sector, said Walid Al Zarouni, the head of W Capital Real Estate Brokerage Co.
The Corona virus should not be a transient event for everyone, but rather a transformation stand-off to create a new world, he stated.
The real estate sector before Covid-19 will never be the same when the crisis is over, the same is true for all other economic sector, noted Al-Zarouni.
He called on the top players in the real estate sector to prepare from now on, for the new era after the pandemic ,and try to map out the future of the sector after containing the outbreak of this epidemic.
Real estate is one of the most important sectors in the national economy, and will be one of the most important economic indicators in the post-Covid-19 era, he added.
The 10 key factors that will help in accelerating the recovery of UAE property sector, are:
*Strong investor appetite – It is expected that the appetite of real estate investors will be stronger significantly in light of the decline in prices and the rise of offers, which contribute to boosting the investors’ and residents’ interests alike, in the real estate market .
*Changing of Work Style – The work from home trend will become an essential part of doing business in the post-covid-19 world in general, while real estate companies continue to benefit from the lessons they have learned from this trend to improve their business efficiency and reduce costs ,as well as the decline in office rents , travel and organising events.
*The trends of real estate marketing – It will also change, in line with adopting new technologies. The Covid-19 outbreak challenges created good opportunities to change work patterns and put forward innovative marketing ideas that attract customers
Developers will be pleased to present their products in a new way through the “social media” channels, and the use of virtual reality and augmented reality technologies to give the customers a realistic purchasing experience .
*Reducing fees – The real estate sector was a special priority to the recent government incentives aimed at providing “all the necessary” to maintain economic and social stability.
*Promotions – There will be a frantic race between companies and developers to attract buyers to the market again by special and attractive promotional offers. There will be unprecedented price cuts and various facilities such as easy long-term payment plans, no down payment, fee waivers. The local investor will be the first winner in particular after the decline in tourists’ numbers for a long time.
*Attractive Prices – With attractive real estate prices, buyers will be encouraged in all market segments, i.e. residential, commercial, hospitality or administrative units.
*Great Partnerships – Covid-19 challenges to real estate companies will enforce large partnership deals between developers and companies in the private and public sectors, to finance real estate deals in an affordable manner guaranteed by salaries.
*Expo 2020 Postponement – The postponing of the Dubai International Expo to year 2021 will grant new prospects for real estate companies, besides it will give them an outlet to leeway from the pandemic damages , and give them an opportunity to complete the planned projects for 2020 and 2021 .This will be boosted by strong demand in the projects planned for hand over in 2021 .
*Rent-to-Ownership – Real estate companies undergo a demand for rental properties ending in ownership, which provides greater options for most areas and price range. Although the property ownership period is 99 years, it can be less in some cases, and it is noted that there is a real demand for flexible ownership programs that meet the aspirations and needs of clients.
*Fresh blood – The end of Covid-19 crisis, coupled with the high level of innovation and the creation of new jobs that are alternatives to traditional jobs, which push employees to develop and diversify their skills, or use their original skills in other jobs, Fresh blood will be pumped into the sector that boost development and push it forward .
The Covid-19 crisis has contributed to increasing investor awareness towards investment in the real estate sector as a store of value and cash coffer , as well as a source of fixed income, and an ideal means for growth of investments in the long run.
