According to the latest Property Finder data, sales transactions are going back to the level they were in February and early March this year. June 2020 sales grew by 60.3% in comparison to May 2020. This shows investors are recognising these unprecedented times as a great investment opportunity. However, 53% of total sales transactions were within the secondary market. Consequently, interest in off-plan projects is decreasing.
Off-plan projects offer better deals
On the other hand, developers are adapting to the current situation by introducing attractive payment plans. Some offer other benefits as well.
“At AQUA Properties we have not noticed a drop in off-plan sales transactions. Moreover, H1 2020 was by far more successful than H1 2019, when it comes to number of closed deals and total off-plan sales value. Savvy investors are, more than ever, interested in property investments in Dubai and other emirates. Our team is working tirelessly day and night, to find the project that ticks all their requirements”, says Ahmed Abouzaid off-plan director at AQUA Properties.
What are investors looking for?
Mortgage inquiries have increased, interest rates are at an all-time low and the banks are set to give the best offers to potential investors. As a result, even first-time buyers are considering investing when presented with the right project.
“In comparison to pre-COVID-19 times, we are no longer only focusing on Dubai’s major developers. We promote smaller players in the market offering good-quality projects at affordable prices around the UAE. Some of the developments we cover come with a 12-year residency visa, trade license or flexible payment plans with several years’ post-handover. Experienced investors know that now is the best time to invest in Dubai properties”, explains Ahmed.
However, according to the latest trends, they are nowadays keener on investing in ready off-plan projects or those near to completion than in just launched projects. Others are trying to be competitive by offering flexible payment plans and other added benefits. With ‘payment plan’ being among the most searched words on Property Finder last month, this is what is appealing to the post-COVID-19 buyers.
The future of Dubai off-plan projects
According to the experts, the downturn in off-plan sales post-financial crisis of 2008 will not hit Dubai’s real estate market to the same extent now. Mostly because the developers learnt a lot from the previous recession, and they are ready to tackle this challenge. Furthermore, Dubai is still among the most attractive cities to invest in globally, offering one of the best returns on investment. Not to mention that EXPO 2020, now scheduled for 2021, will surely stimulate the economy further and bring new potential investors.
“As a real estate company with over 15 years’ experience, we adapted our approach as well. In these times we are more focused on experienced investors. They see these unprecedented times as a great opportunity to invest wisely and buy Dubai properties at a lower cost. Moreover, we assist our clients with all their needs, such as visa issues or international money transfers. Also, we are closing more bulk deals than before. AQUA Properties has separate dedicated teams for every emirate. We are set to cater to all clients’ needs, regardless of their budget and motivation”, concludes Ahmed Abouzaid.
Martina Pozgaj is a graduated Croatian journalist with 12 years’ experience in various media. Employed as a content writer for AQUA Properties, her main focus nowadays is the Dubai real estate market.
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