According to real estate consultants, the decline in new property project launches, as well as slower deliveries, will help cushion prices from further fall in Dubai real estate market.
Cavendish Maxwell, The MENA region’s leading firm of property consultants and chartered surveyors, said in its latest report: “Several developers have slowed down project launches and have chosen to instead focus on completing existing projects. For the second quarter and the remainder of 2020, the delivery of new units is expected to be impacted as many construction companies, contractors, and suppliers temporarily suspended activities from March as a precautionary measure against the further spread of Covid-19. Fewer new launches and potential delays in handovers of existing projects may constrict supply overall, providing support to prices and rents in the upcoming quarters”
So far, only a couple of property developers have launched projects including Danube Properties and Sobha Realty.
Aditi Gouri, associate partner, at Cavendish Maxwell, said the proactive stimulus measures introduced by authorities, including improved loan-to-value ratios for first-time homebuyers, will help enhance resilience and enable the sector to quickly recover from this situation.
Analyst believe that Expo 2020 delay for a year will also prove a boon for the real estate in the form of increased transactions when the prices are also on a faster recovery track in 2021.