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How on earth can I sell my property in Dubai fast in 2020?
Do you have an overseas property in Dubai that you’re trying to sell as quickly as possible? Not going to be easy, thanks to the extreme uncertainty there and the rest of the Middle East.
Coronavirus is only a part of the reason. Much of Dubai in the lockdown mode and hardly any businesses are functioning. Even estate agents are forced to work from home. They cannot take prospective buyers to the property because of government restrictions.
So, buyers have to make a decision on whether to invest or not based on what they see on FaceTime, or during the virtual tour of the property. Dubai is certainly much better placed than Iraq, Iran, Yemen, Libya and Syria, which are ravaged by a civil war.
But Dubai depends on oil wealth too. With oil prices crashing to $30, there really isn’t much money to go around in the Kingdom.
According to the IMF, “These developments are expected to weigh heavily on oil exporters with undiversified revenues and exports”
“The fast deterioration of the global economic outlook as the epidemic has spread and the breakdown of the OPEC+ agreement among oil suppliers have weighed heavily on commodity prices," IMF said.
The Property Market in Dubai – 2020 Update
Home prices in Dubai have fallen by around 35 percent last 4 years or so. One may blame over construction and the consequent over supply of high-end apartments in the city.
Even in the most famous hotspots such as the Palm Jumeirah island, residential rates have fallen by more than 10 percent. At the Dubai Marina, the fall in apartment prices is around 7 percent since the start of 2020.
Steven Morgan, CEO of Savills Middle East says in an interview with The Daily Mail: “The UAE Government has made a number of bold, innovative changes to stimulate the growth of the economy.
“Through both public and private sector investment, we envision the UAE will continue its progress towards a diversified economy and a more mature real estate market.
“There is still some way to go towards recovery but we are starting to see investor optimism return.”
Monica Malik, chief economist at PJSC, a leading Abu Dhabi based Commercial Bank says in an interview with Bloomberg, “The real estate sector is likely to see a significant impact from Covid-19, with a drop in international buyers, the social distancing measures and the weaker market sentiment. The crisis will likely place additional pressure on a sector that is already suffering from oversupply.”
Regardless, it’s not all doom and gloom in Dubai.
Lewis Allsopp, President of Allsopp & Allsopp, a leading real estate developer says, "Times may be unprecedented but for residents living in the UAE and seeing a future here in Dubai, plans to purchase their own homes have not diminished.
“The UAE government stimulus package and the Central Bank of Dubai’s increases in loan to value mortgages have encouraged many buyers into the market.”
He says there is actually "a huge increase in activity in the market since the sterilisation period of 24 hours has been reduced. We are seeing more transactions and clients are ready to proceed with buying, selling and letting properties.
So how to sell property in Dubai fast in 2020?
First, ask yourself who is buying properties in Dubai?
It is usually wealthy Indians, Chinese, Europeans and Brits who invest in properties in the city. Even now, when oil prices are crashing and the Coronavirus has put the world economy behind by at least a decade, people are still buying high-end homes and apartments in Dubai.
Any real estate in the city will always fetch a premium. However, there is no way you can sell your Dubai property on your own, even if you have a local estate agency working for you. You should in fact hire the services of an overseas property expert, who would know these wealthy cash rich buyers from China, India, Europe and the UK, as well as Russia and the rest of the Middle East. Feel free to contact us to know more on how to sell your house or apartment in Dubai fast in 2020.