Interest in the Dubai property market has been steadily rising since the restrictions have lifted. In the latest episode of Bayut Real Estate Bytes, Dr Mahmoud El Burai engages in discussion with industry experts on buying and renting in the Dubai property market post the COVID-19 lockdown.
Dr El Burai was joined by Saeed Al-Zobaidi, CEO of Icon Homes Real Estate Brokers, and Mr Ayham Al-Maghribi, Legal Expert and Advisor. Together, they addressed various matters pertaining to property seekers, such as opportunities for buyers in the current market, advice for sellers and rules for tenants during the COVID-19 pandemic.
Watch the latest episode of Bayut Real Estate Bytes below or read through our highlights to learn more about the conditions in the Dubai real estate market after the coronavirus lockdown.
Buying property in Dubai post the COVID-19 lockdown
The episode started with Dr Mahmoud El Burai asking the guests for their opinion on the state of the Dubai real estate market after the easing of the restrictions to combat COVID-19. Saeed Al-Zobaidi mentioned that while the Dubai property market in 2020 was impacted, like the rest of the world, the government’s swift actions and financial stimulus measures have helped the market stabilise and recover as the emirate returns to normalcy.
He also mentioned that buyers and tenants should maintain an optimistic outlook, as he expects the real estate market in Dubai in 2020 to see an increase in the number of transactions towards the end of the year.
He also emphasised that this is an opportune time for buyers to lock in on affordable prices for properties in Dubai. Moreover, home buyers and investors are being supported by the government through various financing methods, such as lowering of the loan-to-value ratio on mortgage loans for first-time buyers.
Other attractive schemes such as rent-to-own properties are also being introduced in Dubai, which widens the pool of buyers by offering them more flexibility in payment terms.
The guests also discussed the profitability of investing in holiday homes or short-term rental properties in Dubai, which is one of the world’s most popular tourist destinations. Saeed Al Zobaidi revealed that buying holiday homes in Dubai can yield returns up to 10%!
“While [holiday homes] may cost you slightly higher because you have to furnish the property, the ROI will also be high,” says Saeed Al-Zobaidi.
However, he did advise investors to be prudent when choosing the location to invest in short-term rental properties. Popular areas with proximity to attractions and activities such as Dubai Marina, Downtown Dubai and Jumeirah Lake Towers are all ideal places to invest in holiday homes, he noted.
Advice for sellers in the Dubai real estate market after COVID-19 lockdown
For homeowners looking to sell in the Dubai property market post the COVID-19 lockdown, Saeed Al-Zobaidi stressed that unless they need the money immediately, he would not advise selling property right now.
While real estate prices have decreased slightly due to the impact of COVID-19 on the Dubai real estate market, Saeed expects these to rise again by the beginning of 2021 as the emirate returns to normalcy.
Clarifying the rules and rights of tenants in Dubai
The episode also clarified some of the finer points of Dubai tenancy law to address some concerns for residential and commercial tenants renting in Dubai post-lockdown.
Due to the COVID-19 pandemic, tenants facing financial difficulties are now seeking more affordable housing options. Ayham Al-Maghribi stated that while tenants in Dubai cannot unilaterally terminate the rental contract before its expiry, he does advise them to explain their situation to the landlord and try to negotiate a solution that’s favourable for both parties. In case of any dispute, there is always an option to file a rent dispute in Dubai.
He also noted that tenants should do the same if they are looking to amend any terms of the contract, such as increasing the number of cheques through which the rental payment is made. As a general rule, the tenancy law in Dubai states that either party must give a 90-day notice before the contract’s expiry date to amend any conditions of the contract.
Aside from this, Ayham Al-Maghribi also addressed some general queries regarding tenants’ rights. He clarified that while service charges in Dubai are the responsibility of the owner, other charges such as the Dubai Municipality housing fee is payable by the tenant.
He also emphasised that tenants should always use the services of a licensed real estate agent when renting a property, to ensure that there are no illegal conditions added to the tenancy contract. For instance, tenants are not required to pay an additional amount to make use of the property’s shared facilities such as swimming pools and gyms. By employing the services of a RERA-certified agent, tenants can ensure their rental contract’s conditions are fair.
That concludes our highlights of the latest episode of Real Estate Bytes on the Dubai property market post the COVID-19 lockdown.
While there has been an impact on the Dubai real estate market post the coronavirus lockdown, the market is recovering while offering exciting opportunities for buyers and tenants at the same time.
You can learn more about the COVID-19 impact on the UAE’s property sector, prices and ROI in our previous episode of Real Estate Bytes with Dr Mahmoud El Burai.
If you’re looking to invest in Dubai real estate, take a look at the residential areas near Route 2020, Dubai Metro’s new extension, which is set to welcome commuters soon. Learn more about the average prices in these communities, which are seeing increased demand due to their prime location.