New Mantra to speed up Dubai Property market – Need is for more
The aftermath of the pandemic was supposed to equate the wealth especially for the middle income group, although it has increased the disparity in the society in terms of wealth. The middle income group has borne the brunt of it with job losses, rental decline and a threat of increase in prices.
They are expecting the government to come up with an adequate policy to get the economy back on its feet. Since the end of 2020, the government of Dubai has come up with tremendous policy changes just to restore the economy back on track. The policy makers have taken certain steps to speed up the process.
Amendment in law:
The UAE government has come up with major policy changes, especially the law related to personal freedom. The idea is to bring more investors to the UAE.
Stimulus injection:
After the pandemic, the UAE government injected stimulus in 2-3 stages to boost the economy and to balance the demand-supply in all sectors including real estate as a major one.
Brokerage waivers:
Most of the Brokerage firms slashed the ROI as well as brokerage cuts to give buyers more relief. Apart from that they offer lucrative offers like prior approval and much more to attract buyers. You may get the best quote and services by none other than Money Maestro in Dubai property market.
Bank rebate:
The bank in UAE has offered many rebates to attract the investors as well as new buyers to invest in property.
Citizenship offer:
For the first time in history, a gulf country has offered citizenship to a certain special category of people to empower their economy.
Visa linked to property:
One more step taken by the developers to boost the sales is via visa linked property purchase. It helps the buyers to get long term visas.
New feather in the cap
Not all the initiatives stated above are taken by the government of UAE, but developers and Banks too bring back the zeal of the property market for the middle income group as they are the most promising buyers. It is witnessed that the efforts by the government and developers have brought about positive results. There is a bounce in sales recorded in the property market. Some developers have come up with this new marketing tool- No down payment. They are offering it as a special offer to boost the sale.
In this “no down payment” case, the developers fix a monthly amount for the buyers for a certain period of time which is convenient for both the developers and buyers.
Currently, it is offered by only one or two developers but it is speculated that if it brings out positive results, more developers may start providing such offers to hike their sales.
Need is for more
All the initiatives taken are to revive the economy but these efforts will take some time. The developers as well as the banks are coming up with new ideas every day to increase the market. Some developers have also increased the built up area as a bonus to the buyers. Banks are offering waiver in service charges to enhance the market.
The pandemic continues to affect the world economy and the majors taken to revive has increased the price of assets. It might have an effect only on the middle income group as the higher income group is least affected. For them, there is no shortage of capital and risk taking capacity.
The middle income group is trying to take advantage of all the stimulus offered and get the best bargain. The developers and the government are also focused on the middle income group to grow the property market.
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