Impact of Covid -19 in Dubai Real Estate -Why Should You Invest?

According to the World Health Organization, the pandemic Coronavirus has spread to 199 nations, killing 31,918 individuals in total. It led governments all around the globe, including the United Arab Emirates, to restrict economic activity and issue advice to citizens to remain at home. All these worldwide events spur the faith of investors and dissuade them from investing their money. There is no disputing that there will be a temporary decline in all industries throughout the financial process throughout the economic cycle. Still, it may be a gift for investors in the long term. In my view, investment in the real estate industry in the UAE area may be a long-term safe option for them.

There are seven compelling reasons to invest in real estate.

• Whenever a crisis occurs, the government responds with stimulus packages. Recently, the UAE government proposed an AED 126.5 billion economic stimulus plan to reduce the virus’s short-term effect on the country’s economies. The main objectives of the package include lowering the cost of doing business and streamlining the business process, among other things.
• Coronavirus has prompted the government to push the interest rate even lower by 75basis points which means lower financing costs and an opportunity to invest in the sector.
• In the aftermath of the financial crisis, the health care real estate industry is anticipated to grow, according to predictions. The United Arab Emirates has a well-developed healthcare system that is well-equipped with resources and technology to keep its citizens safe, enticing international companies to engage in this area.

As stated in a recent JLL study (Healthy Returns) 2019, there will be plenty of possibilities to invest in the healthcare industry across the Middle East and North Africa (MENA) region over the next five years due to an aging population and increasing demand for health care facilities.

• Events like the “Dubai Expo” and “Dubai International” are postponed but are anticipated to take place shortly to provide the immobilizer with an enormous inflow of visitors.
• Tourism, retail, and hospitality industries are the most affected sectors of these epidemics that acquire traction over the long run. In 1 or 2 quarters of the economic cycle, the short-term effect may be restored.
• A current epidemic will impact UAE citizens’ purchasing patterns. Online shopping would be more common, leading to the need for additional industrial inventory management space that would enhance the real estate sector
• Recently, the government has introduced policy amendments to promote the UAE real estate industry. In Dubai in late 2018, the government proposed visa changes to attract ex-pats to invest in the UAE. The government established a ‘golden card’ scheme in 2019 to provide intellectuals, executive directors with above 30,000 AEDs, with long-term residence permission.

Conclusion

If history is any indicator, then the global economy has recovered from the economic crisis over time. Every industry will experience a problem of unbalanced supply-demand in the near term, but companies will ultimately recover. UAE offers a favourable business climate supported by a stable administration. Investors must immediately seize this opportunity by setting up their company in the UAE.