Dubai’s real estate market has made a “hard lie” but lower prices may be a good time for investors looking to buy, according to Emirati’s leading real estate developer.
“We have had a slowdown in the economy, and in the property market since then [2018 and 2019], things were already coming down, “said Hussain Sajwani, chairman of Damac Properties.” We were getting [a] come ashore soft … and Covid did it [a] lying hard. “
Now a “very good time” for people to buy real estate in Dubai, he told CNBC’s Hadley Gamble on Wednesday, estimating that resale units could cost 10% less than development new at this stage.
The market is likely to remain under control for the next two years as long as the city recovers from the pandemic, he said.
“I still see a soft market for [2021 and 2022], “he said. A soft market refers to one where there are more potential sellers than buyers – and prices are likely to fall. This is also called a buyer ‘s market, because buyers have more bargaining power in negotiations.
Consulting firm ValuStrat reported in January that Dubai residential property prices fell 12.3% from a year ago, while prices rose 0.1% from December.
Sajwani said Damac Properties is unlikely to start many new projects in the current environment.
“We’re going to be very, very careful,” he said. “We’re not going to launch a lot of projects, maybe very few, very few, if at all. “
There has been some demand for properties, he said, but that has been mostly in luxury villas that are ready for buyers to move into.
I am very, very positive about Dubai in the long run … supply will fall and property prices will fall and come back strong.
Hussain Sajwani
Chairman of Damac Properties
Covid-19 took the world by storm in 2020, when the coronavirus swept from country to country, killing more than 109 million people worldwide and killing at least 2.4 million people, according to data released by Johns Hopkins University together. The pandemic declined the global economy and few businesses were saved.
Last year was “no time for people to buy property,” Sajwani said, pointing to the pandemic and the locks that followed.
However, he expects prices to eventually kick back and said the city will emerge from the stronger crisis.
“I am very, very positive about Dubai in the long run solar supply will fall and property prices will come back and come back strong,” he said.