Your shopping cart is empty!
Do you want to sell your property in UAE fast in 2020?
The coronavirus pandemic has thrown the world into a major economic crisis and the UAE is right in the middle of it. Although the Covid-19 infection rates are not that high in the UAE, the lockdown has been enforced strictly by the authorities. Here are the details.
Selling Property in the UAE Fast in 2020: Dubai Property Market Outlook
Dubai is absolutely critical to the UAE. It is a magnet for the rich and famous from across the world, a Dubai real estate is the ultimate status symbol.
But the coronavirus hasn’t spared Dubai either. Home and apartment prices have gone down by 30% from their 2014 high. Demand is the weakest it has been for years.
Charles Robertson of Renaissance Capital said in an interview with CNBC. “This is not the first-time markets have fretted about a Dubai default. But this time it’s serious, given a health crisis, a transport and tourism crisis, an over-supplied real estate market, and an oil price plunge.”
S&P Global Ratings said in a report, “We now expect to see international demand for property in UAE to be subdued and the fall in residential prices to be steeper than we had expected, and lingering well into 2021.”
Fitch Ratings too expressed unease over the fiscal situation in the UAE, insisting that banks there had not fully recovered from the 2009 crash. A Fitch Ratings analyst said, “smaller banks are more vulnerable to deterioration in credit conditions due to thinner capital buffers and lower revenue generation.”
Further, the coronavirus “will cause Dubai’s economy to contract sharply, exacerbating overcapacity in key sectors and making it more difficult for the Emirate’s government-related entities (GREs) to service their large debts,” according to a report by the global consultancy Capital Economics.
Selling Property in the UAE Fast in 2020: What About Abu Dhabi?
While Dubai is mostly dependent on tourism and real estate, Abu Dhabi has actual oil reserves. Their resources are considerable, even as oil prices hit $30 a barrel.
Mohammed Ali al-Shorafa of the Abu Dhabi Department of Economic Development said in an interview with CNBC, “Abu Dhabi has the resources, even at these levels of crude oil prices, to continue with its planned progression.”
Capital Economics adds, “If debt problems do materialise, Dubai’s government is not in a position to step in given its own large debt burden. A key factor that will determine how fresh debt problems in Dubai play out is the response from neighbouring Abu Dhabi.”
“Authorities in Abu Dhabi may be hesitant about bailing out Dubai again given moral hazard concerns as well as the constraints of the collapse in oil prices,” the report said. “On the other hand, policymakers may feel they need to act quickly and aggressively. Failing to support Dubai would also raise concerns about the economic and political stability of the UAE as a whole.”
Here’s a question: who is still buying properties in the UAE, in spite of the crash in oil prices, Covid19 pandemic and the uncertainty in the global economy?
Typically, it is almost always high net worth individuals from India, China, United States, Australia, Britain and other Middle Eastern nations who invest in properties in the Kingdom. Dubai in particular holds a strong fascination for many.
Even at a time when oil prices are crashing, the Coronavirus has caused a worldwide recession, putting the global economy behind by at least 10 years, these wealthy individuals – business owners, CEOs, hedge fund managers, movie stars, professional athletes, media personalities and other celebrities - are still buying high-end homes and apartments in Dubai.
Any real estate in the UAE will fetch a premium. Regardless, don’t even attempt sell your overseas property in the UAE on your own. There’s no point hiring a local real estate agency either.
The smart thing to do is to hire the services of an overseas property expert, who would have contacts/professional relationships with cash rich buyers from Russia, China, India, United States, Australia and the UK, and the rest of the Middle East. Contact us to know more on how to sell your house or apartment in the UAE fast in 2020. If you want to sell fast and want cash investors for your overseas property we can help.