Everyone would agree that COVID-19 had an undeniable impact on the global economy, where the flights were stopped, purchase power had reduced and all activities have been frozen. But from another side, it brought a lot of benefits for consumers.
Let’s see some of the few examples of great opportunities available in the real estate industry right now:
- Very Low Prices. Now Dubai is oﬀering very low prices on a property purchase which almost can be compared with 2008-2009.
- Guaranteed ROI. Many developers nowadays in Dubai are oﬀering guaranteed ROI for several years, that can cover up the investors for the next few years. By this time, the economic cycle expected to improve much more.
- Flexible Payment Plans. Almost all developers became very flexible with payment terms. In the current market, widely available payment plans, where the buyer can pay for a property for 5 or 10 years.
- Higher Mortgage Caps. Due to the latest announcements of a Central Bank, now, all banks are allowed to provide property financing for up to 80-85% of a property purchase price, which was never available before.
- Rent-to-Own. Why rent if you can own? With competition better terms and conditions came up. In the current market, anyone can simply purchase a property with a scheme Rent-to-Own without needing to have a residency visa or banking cheques. You can simply do online transfers or pay cash in a developer’s oﬃce for your property during 5-10 years.
- Capital Protection. Some developers are currently oﬀering Capital Protection of
+15% for 3 years. This means if you purchase a property for one million now, and if property prices fall within the next 3 years for more than +15%, then the developer is going to compensate you for your loss.
- Without an exaggeration, now in Dubai was sold a Studio apartment for an AED 250,000, which was rented for an AED 30,000 with one installment in the Jumeirah Village Triangle area.
- Now, you can purchase a Hotel Apartment on Palm Jumeirah, which guarantees you a 10% Return On Investment during the first 5 years - where within the five years, you get a 50% cash-back.
- Moreover, you now can purchase a three-bedroom apartment located right on the beach for only AED 1,000,000, which can be rented for an AED 105,000.
We all can see, that Dubai’s economy is showing great signs of quickest recovery, where within the shortest period of time, the lockdown was removed, all activities resumed and businesses reactivated. We can notice, life is coming back and improving, where the only remaining sign of COVID-19 is people wearing masks.
CEO of IDIGOV Real Estate, Founder of IDIGOV Consulting, CFO of AirGo
Consultant and Trainer at Dubai Land Department’s Dubai Real Estate Institute