The real estate industry in Dubai is actually undergoing a fascinating transition. Although the year 2020 brought with it a slew of factors that impacted not just the Real Estate Companies in Dubai, but the whole environment, it also boosted property law and citizenship visa reforms in Dubai.
The housing market saw a massive drop in terms of pricing and leasing in 2020. This was also a period in which the number of purchases in this field was at an all-time peak. Over the past two years, December 2020 saw the largest number of transactions in a single month. The off-plan business has seen a downturn as a result of a clear move towards the secondary market. Not only in terms of costs, but also in terms of the number of releases, which has dwindled with time as developers slow down the development of new stages?
The demand for rental and resale properties has increased in 2021. This is attributed to the drop in selling and rental rates. The government assistance and visa changes that have been announced are another big catalyst for 2021 to be a better year for Dubai's property market. From residence permits to citizenships, Dubai has it all, including a committee to track supply and demand in the industry.
Not just that, but Dubai's government is also doing an excellent job of vaccinating both inhabitants and people, which is also assisting in the market's recovery. Lower interest rates and incredible LTV ratios for first-time buyers are both big demand factors right now. This year is seeing a positive rise in contrast to the previous year, with Expo 2020 coming up in October 2021 and the 50th National Day coming up in December 2021.
Given the present scenario where more workers are working from home and large businesses are deferring their office space decisions until the next year, the office industry has seen a downturn in both leasing and revenue. The logistics and delivery, ecommerce, and cold storage industries, on the other hand, have been booming, resulting in a higher demand for warehouse space in Dubai.
Dubai has a good investment climate, according to Sultan Butti bin Mejren, Director General of Dubai Land Department. Dubai is led by the strategic vision of its founders, given its adaptability to different circumstances. This contributes to the property market's performance in Dubai.
Indians top the list of foreign investors, according to Gulf News numbers, with the Chinese trailing closely behind. The British, Pakistanis, and French are then added to the list. About 19K global investors participated, resulting in a combined investment value of over AED 35 billion.
Finally, home values are projected to plunge in 2021, but at a slower rate. Real Estate Developers in Dubai industry has been largely robust to the impact of 2020, with the demand-supply ratio going towards equilibrium, and is poised to get higher.