This year we’re ‘celebrating’ the 10th anniversary of one of the scariest economic crises of the modern era: the 2008 ‘bubble burst’ that started the “Great Recession”. I would like to believe that every one of us who had a lesson to learn has learned it.
Today, what may appear to some as a bottoming out of the market is in fact an essential, natural adjustment. The savvy will have noticed that the level of transactions in comparison to the same period as last year have declined, and over the next few pages you will see how rental prices have been declining alongside, and in some areas are at, 2013 levels. For more, read Property Finder’s Chief Commercial Officer, Lukman Hajje’s overview on the state of the market.
In recent months, we’ve also consistently been hearing about the oversupply challenge, and how there’s a clear lack of coherency between the real demand and the available supply, resulting in additional downward pressure on the market.
The way I see things is that the main difference between today and 2013, or today and 2008, is our ability as an industry and as a country to identify these signs early on, and be able to embrace change faster than ever.
As an illustration of this, affordable demand is on the rise and developers who are quickly embracing the change are already seeing the first signs of a healthy recovery. Aldar, for example, reported a 5% rise in net profit in the first quarter of this year.
Obviously, the journey to a full recovery will not be a sprint. Instead, it is more like a marathon, but the reward is going to be worth every effort. The UAE is paving the way to becoming one of the most, if not THE most, attractive investment destinations in the world.
The UAE government is relentlessly working to streamline procedures to make investments in the country more convenient than ever, such as the digitalisation of the whole process through ‘REST’ Real Estate Self Transaction, that aims to eliminate paper documentation by 2020 for all rent and sales transactions.
In recent weeks the government has also announced that they will be granting up to 10-year residency visas and reducing government fees to incentivise future investors and make this market as competitive as ever.
At Property Finder, we are doing our part by facilitating the transactional loop through connecting users to real estate professionals faster than ever, and by providing both parties with essential data that will help them make the most informed decision possible.
So, I’m not sure about you, but the only way out I see, is the way up!
By Michael Lahyani
CEO and Founder of Property Finder Group
This article was originally published in Property Finder Trends, Vol 4. Click here to read the full report online or download the PDF.