There will be no slowdown in Dubai’s real estate market during Ramadan, according to an industry expert.
The Holy Month of Ramadan, which officially began on Tuesday, is considered a quieter time, with traditional fasting and reduced working hours during the day.
However, Robert Thomas, head of agency at Cushman & Wakefield Core, told Arabian Business the pent-up demand, caused by continuing coronavirus restrictions across the globe, will help stimulate the sector at this time.
He said: “As most residents would be within the UAE during Ramadan due to travel restrictions and potential lockdowns in other travel destinations and home countries, we don’t expect a slowdown in enquiry or transaction levels during this period.
“We have generally not seen a slowdown in activity during Ramadan, however, since over the last few years it has coincided with the summer months, it is perceived so.”
A property glut and faltering demand in the Middle East’s business hub have driven prices down by more than a third since the market peaked some seven years ago. The decline has been made worse by the coronavirus pandemic.
In March, the chairman of Dubai-based building giant Damac, Hussain Sajwani, said he believed the emirate’s real estate market would take up to two years to fully recover from the impact of the Covid-19 pandemic.
While S&P Global Ratings analyst Sapna Jagtiani previously told Bloomberg that she expected the property market in Dubai to ‘bottom out’ next year, after weathering a tough 2020.
Taimur Khan, associate partner, Knight Frank Middle East, told Arabian Business: “I think given where Ramadan fell last year and the length and stringency of the lockdowns in Dubai over this period, I would be very surprised if we don’t see a large spike in transactions numbers.”
Non-oil private sector activity in the UAE grew for a fourth month in March, the longest run of expansion since late 2019, according to IHS Markit. Its UAE Purchasing Managers’ Index rose to 52.6 from 50.6 in February.
“Dubai’s successful demonstration of mitigating Covid-19 risk and of being open, relatively safe and connected is driving new and existing businesses and providing comfort to end-users and investors to invest, resulting in a rise in market activity across all sectors, particularly since Q4 2020,” said Thomas.
According to statistics revealed by the Dubai Land Department (DLD), investment in the emirate’s real estate reached $3.8 billion by the end of February this year, despite the continued Covid crisis. This included 3,036 new investors entering the market in January and February 2021, representing 62% of the total number of investors over that period.
Investment in Dubai’s real estate reached AED14 billion ($3.8 billion) by the end of February, despite the continued crisis caused by the coronavirus pandemic.
According to statistics revealed by the Dubai Land Department, 3,036 new investors entered the market in January and February 2021, representing 62% of the total number of investors over that period.
The ‘Real Estate Updates’ bulletin also showed that 96,396 Ejari contracts were recorded in January and February this year, 57% of which were new contracts and 43% renewals.
Sayndippta A Ghosh, director – head of residential UAE, told Arabian Business: “We have seen a surge in international investors mainly from Europe and Asia and as a result had over 11,000 transactions in Q4 2020. There has been an increase in transactions (value and volume) and even the sale prices have started to improve quarter-on-quarter.
“However, Dubai’s general sale and rental rates registered declines of five percent and ten percent year-on-year in Q1 2021. In terms of off-plan, I wouldn’t say that they are back as the number of launches has been limited and currently the focus of developers is more towards existing inventories.
“All this is good for the market as it shows that the residential sector is one of the most resilient in Dubai and we can expect to see more improvements in the future.”
