Dubai real estate is expected to be better by 2021, but what about Pakistan?
The Covid-19 outbreak in the entire world has caused an immense loss in the construction sector. According to The National/Antonie Robertson, Chairman of Damac Properties, Hussain Sajwani said, “All new property launches will be halted this year due to the coronavirus pandemic."
Image source: The Nationals.
The Dubai property market is ensured to bounce back hard in 2021 with the support of economic activity associated with Expo 2020.
UAE's third prominent listed developer Damac properties also said new developments in Dubai would remain standstill in the year 2020 as the coronavirus outbreak has limited the demand of consumers.
According to Bloomberg TV, Hussain Sajwani stated, "I don't think there are going to be any more new launches in 2020”.
Even with all the project developed launches halted in 2020 and 2021, Dubai is expected to change the market with its Expo2020 that will initiate from October 2021. Dubai Expo 2020 has confirmed visitors over 25 million from the 192 participation countries, whereas 30% of the total visitors are expected from within the United Arab Emirates. The remaining 70% is ensured to come by the 192 countries.
Dubai Economic Crisis Since 2018
Dubai economy is facing an economic crisis since 2018, thousands of people have left Dubai, and many more are expected to leave Dubai in the upcoming future. Dubai expo 2020 is arranged to boost the UAE economy and strengthen the economy of Dubai. By this expo, 2 million 77 thousand employment jobs will be created. The overall revenue through this expo2020 will be more than 40$billion. The GDP of the UAE will also increase through this exhibition. Overall, the Dubai economy and real estate will be better by 2021 on the sole support of Expo2020.
If we talk about how the real estate is behaving, then the oil prices dropped in 2014 raised some concerning questions on the oversupply of properties and lesser demand in real estate. To make the situation better, the UAE's emirates created a higher committee for real estate planning. It was led by Deputy Ruler Sheikh Maktoum Bin Mohammad on Monday 2nd, September 2019, top senior property developers. The aim was to balance the supply in Dubai’s property sector by joint ventures between government and private companies.
Even in the times of Covid-19 in 2020, the real estate market of Dubai is receiving potential buyers who are attracted to the mindset of good bargains.
Let’s have a look at how the rentals of Dubai are behaving in Covid-19,
The famous residential area of Dubai Marina is known for the luxurious beachside living. It is the perfect location for property buyers in Dubai. This area has attracted much interest from renters and investors in the past year.
Jumeirah Beach residence is known as JBR; it is one of the most live lucrative living in Dubai. The waterfront housing community accommodates 40 tall towers and gives an overlook of the Arabian Gulf. The society is suitable for couples and young families. The Jumeirah Beach Residence JBR, features beachfront restaurants, top-class hotels, hot & happening nightlife, shopping malls, and an excellent healthy environment.
Downtown Dubai is one of the most outstanding areas in Dubai. It has mixed-used buildings on a large scale. This is Dubai’s most significant landmarks location Burj Khalifa and the world-famous Dubai Mall. The residence gives luxurious living and lifestyle in Dubai.
Why purchase property in Covid-19?
With the Covid-19 outbreak, it is an excellent opportunity to buy and sell as the secondary markets are desperate to gain something in these tough times. Many investors belonging from third-world countries are purchasing properties in Dubai at the moment.
If you want to know more about Damac Properties, than let us give you some details about it through our property insights,
According to Chairman Damac, new projects offer by Damac properties are giving a 5% to 10% discount on purchasing its real estate developed projects.
Damac properties face loss amid Covid-19 time.
As Damac is one of the third top developers of UAE, it solely reported a loss of Dh36.9 million. In contrast, since the Covid-19 entered UAE, the company made a profit of Dh1.15 billion only in 2018 since Dubai economic conditions started reporting worse from 2018.
The government of Dubai is active and doing everything they can to make the sure year 2021 will be successful. In 2020, almost every country is expected to suffer, but with the expo2020 happening in October, Dubai will have a boost in its economy.
As discussed above, how Dubai is still expected to brighten up in the times of COVID-19, let's now talk about the Pakistan real estate sector. As a third-world country and political instability, how will our real estate developments improve our secondary market conditions?
Dubai Land Department (DLD) reveals that Pakistan has emerged as the third-largest real estate investor in Dubai, through citing data spanning 18 months- from January 2016 to June 2017.
If we take a look at the details above, we all imagine that why Pakistani investors felt the need to invest in another country's real estate and not their own in these two specific years?
How Political Stability Affected Pakistan In 2016 and 2017?
Pakistan's political instability impacted the entire country’s economy. The country faced its worse in the year 2016 towards 2017. The Pakistani rupee lost 5% of its value within three days in 2017. Pakistan's foreign-exchange reserves wasted, and the stocks of the dollar decreased by 30% from January to October 2017 and sold off in the market in November as $2.5 billion of $-denominated bonds. Not only this, but the exports fall off from 2015-2017 straight in three years with no improvements. Pakistan had face a -4% of GDP in its financial, and the problems were getting worse every day. The country received a loan of $6.7 billion from the IMF in 2016.
This complete information about how Pakistan was behaving in 2016 and 2017 gives us the idea why the Pakistani investor preferred to invest in Dubai Real Estate.
How the Real Estate of Pakistan performed in 2018-2019
The year 2018 was chaos. When the new PTI government took over and modified several sectors in real estate on the purchasing and selling. There was a ban applied on non-filers where they cannot purchase a property for PKR 4.million unless they have registered with FBR.
Another incident in 2017, which affected the real estate market was the decision of the Panama case, which instructed that PM Nawaz Sharif could no longer hold public offices. The real estate market faced limitations to reach success, and investors were disappointed.
If we talk about 2019, then the real estate sector faced immense downtimes from 2018 due to political instability in the country. Real estate looked promising for property investors in the New Year with several developments on the way. With the progress in the CPEC, it attracted many lucrative investors to strike the gold in Gwadar, which is expected to strengthen the economy on a single base. The real estate market behaved well in 2019 and was expected to gloom and bloom in 2020.
In 2020, as of today, in the time of coronavirus, the real estate market is getting better every day, after facing a strict lockdown after 23rd March 2020 till 1st June 2020. The construction sector is racing against time, as many development projects were halted during the lockdown. However, since the lockdown has eased, the real estate sector is performing well every day. People are more than ever active and interested in purchasing plots and properties that would benefit them in the future.
Expert property analyst explains it well, Why is NOW the Best time to INVEST in Real Estate,
Pakistan, real estate situation, is expected to show better results as massive relief is given by the Prime Minister of Pakistan, Imran Khan, in the year 2020.
Freedom To Invest In Pakistan – First Time Ever
Before, the NAB and FBR were like an uninvited guest that had entrance access into any business man's account and office. Many multinationals feared that if they invested vast amounts, they would be asked questions and inquiries. Even if a person is trading $ Dollars or Euro's they were questioned for the source of income to purchase these. The Prime minister has announced mega relief in the construction sector, which will have a positive impact on the real estate sector.
From the year 2020 to 2022, all investors with colossal cash available for investment are given the freedom to invest in the real estate sector, and the government bodies or agencies will not question them for their income source. For example, if a business person has 100 crores in hand, he can invest it into real estate without the fear of having an inquiry on his investment. Image the appreciation value of the 100 crores investment with freedom.
With these incentives, the real estate market, even with the outbreak of Covid-19, is a guarantee to behave better than the UAE. The property prices are rising and appreciating since the end of 2019, and long-term investment options are available in thousands as many new development projects have to speed up to avail these fantastic relief introduced in the history of Pakistan to the construction sector.
Invest In Pakistan Real Estate
Real estate is the most attractive investment opportunity in Pakistan at the moment; it gets you a tangible asset. Also, it offers 20% to 30% above ROI to you on off-plan and initial stage projects investment. You must be thinking, what's the best part? The property is also one of the rare assets which can appreciate over time. The overall property value will always increase if you are an investor, and if you are looking for suitable options, you can get professional consultancy free of cost. We will provide you numerous projects that are authentic and powerful. Our company provides consultation services in the real estate market. If you have more questions, please let us know in the comment section below.
If you are searching to invest in Karachi-The Metropolitan city of Pakistan and would like to know the future of real estate business, watch this video to find out if it's the right time to get started in real estate investing?
Pakistan's residential and commercial property investment is famous, and many foreign investors have taken a deep interest in both real estate sectors. Some are looking for residential projects, and others are looking for commercial investments. The good thing about receiving professional consultation services is that you will get complete details on both of these sectors. Our professional consultation agents will inform you of the latest off-set commercial and residential projects.
According to the expert economist, foreign investment jumped by 137% in the first quarter of the 2020 year,
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