Dubai’s Real Estate Market: A Ramadan Recovery
Dubai has been the home to countless real estate enthusiasts, boasting shimmering skyscrapers, golden sands, and limitless ambition. But what happens when the peace of Ramadan confronts the business world that is full of property transactions? Well brace yourself because we’re going to discuss this intriguing intersection.
The Myth Unveiled
For years, there was a story that went around the sunlit streets of Dubai: ‘Real estate activity slows down during Ramadan.’ Stop right there with your dates and baklava; it’s just not true. From industry insiders who know this, there is no stop in recovery for Dubai real estate market in this holy month.
Here goes:
- The Trapped Demand – Think about this—masked faces, prayer beads, and a yearning for normalcy. The pandemic-induced movement restrictions implemented globally have made buyers hold back their purchases. As residents remain grounded within UAE due to travel restrictions, their focus turns to local investments. Property inquiries and transactions are catalyzed by Ramadan.
- The Summer Perception – Over the past few years, Ramadan has coincided with the scorching summer months. While the mercury climbs up, so does the feeling that things are slowing down. However, in truth, the market is alive with activity. It’s like a hidden dance – soft but strong.
The Pandemic Effect
Dubai’s real estate journey has been a rollercoaster. An excess of property and dwindling demand have seen prices fall over 35% since their peak seven years ago. Then along came the pandemic casting its shadow around us. Dubai, however, is resilient, rising like a phoenix from the desert sands.
- According to Hussain Sajwani, chairman of Damac, it will take 2 years for Covid-19 impact on market to recover fully.
- S&P Global Ratings analyst Sapna Jagtiani expects a market bottoming near future.
Ramadan: A Transaction Spike
Last year Ramadan was different from most of them. The grip tightened in lockdowns and there were prayers in Dubai streets as an echo. But reality defied our assumptions when it came to the real estate sector in Dubai. Transactions increased by 211% compared to 2020 and 57% if compared to 2019. Taimur Khan, Knight Frank Middle East associate partner believes this year will see another crescendo. Covid-19 related lockdowns’ duration coupled with strictness fueled demand for properties.
Dubai’s Resilience
The success of Dubai in navigating the risk of Covid-19 has been its ace in sleeve. The city remains open, connected and somehow safe. This is a feeling that draws investors and end-users as well. In the UAE, the buying managers’ index shows non-oil sector activities humming.
The Numbers Speak
Despite the pandemic choking Dubai real estate investment stood at $3.8 billion by February 2021. New buyers comprised 62% of the total number. And secrets that only Ramadan can tell are whispered by its market, while desert skyline gleams with hope. In Dubai’s heart where minarets touch the sky and dreams have their addresses; it thrives even during sacred nights of Ramadan. Thus, as the crescent moon lights up the skyline let us toast to resilience, recovery and magic woven into every transaction we make, chai cups held high.
