The State of Real Estate: Highlights from Bayut’s Fourth Webinar
The recently announced DED guidelines for Dubai reopening have brought glad tidings for the real estate sector in the emirate. With the movement restrictions partially relaxed, people can expect some form of normalcy in everyday life in the upcoming weeks. While the situation has improved now, the UAE real estate industry has shown tremendous tenacity and agents have come up with innovative ways to make the most of this challenging period. Our expert panellists on the fourth session of The State of Real Estate with Bayut discuss some of the main ways in which real estate agents in Dubai can tackle the challenges this situation presents.
WHO WAS PART OF THE BAYUT WEBINAR?
For the fourth session of Bayut’s Webinar, we invited well-known agents and senior brokers to discuss market synopsis, government initiatives and the evolving consumer needs in the Dubai property market, to help real estate agents capitalise on the available opportunities.
Spencer Lodge, influential business expert, entrepreneur and author returned as the host of our latest session and encouraged our panellists to describe their experiences in this new climate.
For the panel discussion, Spencer was joined by Anthony Abou-Jaoude, Associate Director at Provident Real Estate; Alan Cuddihy, Senior Client Manager at Espace Real Estate; Conor McKay, Luxury Real Estate broker at Haus & Haus: and Evelyn Pali, Senior Residential Consultant at Betterhomes.
PANEL DISCUSSIONS ON THE CURRENT STATE OF THE UAE REAL ESTATE MARKET
Most of our guests on the Bayut Webinar for April 28, 2020, confirmed that the real estate market in Dubai has adapted to the new norms of operation. For the latest Bayut Webinar, our guests elaborated on the prospects of real estate business during the Covid-19 pandemic and shared first-hand accounts on how they were adapting and implementing strategies to make the most of this situation.
THE MARKET IS FULL OF OPPORTUNITIES RIGHT NOW
The panel was unanimous on the fact that this is the best time to buy property in Dubai.
With the loan-to-value (LTV) ratio increased from 75% to 80% as a part of the government’s economic stimulus packages, there is extra financial freedom for homebuyers, according to Conor McKay.
“With this 5% change in LTV, if you take an AED 10M property, that’s an extra AED 500k, which a potential buyer may or may not have at this stage. It can open up the budget for some people to opt for higher value properties,” says Conor.
Conor pointed out that there has been an increase in demand for luxury properties in Dubai saying, “I’ve never had as many inquiries in one single month that I can remember to be honest.”
He predicts that people currently living in apartments during the lockdown may look into the possibility of owning villas with pools or private beach access, where they don’t have to worry about the pandemic and its subsequent restrictions. According to Conor the best areas to buy luxury homes in Dubai are Dubai Hills, The Palm and Emirates Hills.
He also highlighted that the property prices in Dubai are currently low, which makes this an excellent time to buy property.
Agreeing to Conor’s synopsis, Anthony Abou-Jaoude of Provident Real Estate was of the opinion that people will favour buying property over renting it. “It’s an opportunity for everyone. With whatever you’re paying as rent for six or seven years, you can obtain your own property,” he said.
Based on his expertise in off-plan investments, Anthony also mentioned that he has observed a massive increase in this segment since investors and homebuyers are capitalizing on the unprecedented offers by developers, some of which according to Provident Real Estate are priced 35 to 40% below market average.
Anthony believes people are opting for off-plan investments as a safety net for their money. However, the same can also be attributed to easy construction-linked payment plans offered by developers, the presence of esquire accounts and deferment of late penalty fees that has kept investor confidence intact even in such uncertain times.
Evelyn Pali reiterated that there was a similar trend observed among buyers for ready properties in Dubai as well.
“The clients out there felt extremely comfortable with the way the UAE government has dealt with the problem. Therefore, they feel at ease to buy a new property. This is a country where they want to raise their kids because they feel extremely safe,” said Evelyn.
She also pointed out that the UAE has been extremely efficient in dealing with the pandemic situation. Elaborating on the opening of remote transfer services by Dubai Land Department as a remarkable step in this direction, Evelyn said that the real estate market in Dubai has made it easier for owners to sell and transfer properties during the lockdown.
“In the past four weeks we’ve carried out remote transfers without any problems whatsoever. So, we have learned that we could actually sell properties without necessarily having buyers or sellers present at the trustee’s office or at the Dubai Land Department. It’s a very good thing.”
Alan Cuddihy confirmed that while short-term rentals are seeing a slight dip, the long-term rental market has remained fairly stable. He also said that landlords have been very accommodating and working closely with tenants to reach favourable resolutions in these challenging times.
WHAT CAN REAL ESTATE AGENTS DO TO CAPITALISE ON THIS SITUATION
According to Conor McKay, there will always be demand for homes – people are always looking to upsize or downsize their living arrangement and this is one of the best times to buy a property.
The real estate dynamics, however, have slightly changed. Brokers and buyers/tenants have to make use of online real estate tools for various stages of buying and selling property.
Alan rightly pointed out that, “Even though the restrictions have been lifted, there is still a little bit of fear. People don’t want to rush out to viewings, but they’re still interested in seeing or understanding some properties that they like. So, we can send them Bayut’s 3D floor plans and conduct virtual property tours. They can view the property from the comfort of their homes.”
Alan stressed on the importance of virtual real estate tools like Bayut’s TruCheckTM and 3D live floor plans for property brokers and agents in Dubai. He believes Bayut’s virtual property search tools add value for the clients, which makes it a great selling point for real estate brokers.
“When you have a TruCheckTM on a property the client knows that the listing actually exists. The 2D and 3D floor plans are there – everything for the client is there…So with the virtual tools alone, you’re adding so much value that when the client contacts you, there is really no reason for them to go anywhere else. They have all the information they need and it’s ultimately beneficial to you as a broker,” he said.
In addition to Alan’s advice, Conor shared his approach to dealing with new leads. He said his first priority is to get them on the phone, talk to them and set a date and time to meet them. Conor believes it’s important to start off on the right foot, build the client’s confidence in them by showcasing knowledge and positivity.
For the new real estate agents, Evelyn believes that it’s important that they create a niche. She said that real estate agents who focus on one area and establish expertise in that area with unique property insights for their niche are better able to add value to their clients. It helps build referrals and networks that give them a solid start.
Lastly, on the matter of staying motivated even during the tough times, Alan revealed his mantra was to see every situation as an opportunity to do better and leave your competitors behind. Where others may fall behind, you can excel by giving your 100% every time.
THE BAYUT REAL ESTATE QUIZ ON KAHOOT
Towards the end of the Bayut Webinar, the panellists and viewers had the opportunity to compete in a fun quiz on Kahoot. The quiz comprised of questions related to the Dubai real estate market.
Conor McKay won the first place among the panellists.
From the viewers, the following participants aced Bayut’s Webinar quiz on Kahoot.
- First Place: Scott Craggs
- Second Place: Mohsin Ayub
- Third Place: Alessia Sheglova
That sums up the fourth episode of the Bayut Webinar series.
We, at Bayut launched ‘The State of Real Estate’ webinar initiative to promote open communication about the current situation in the UAE real estate industry and the challenges it poses for its stakeholders. The Bayut relief packages for partners were just another step we took to come out of this situation stronger than before.
The industry has rallied together, maintained a positive outlook and worked hard to build a good pipeline so that business can pick up once again, as soon as some form of normalcy returns to the country. At Bayut, we remain committed to supporting our partners and ensuring that the UAE real estate community comes out of this stronger together!
How do you see the real estate market in Dubai and the UAE evolving in the times to come? Let us know in the comments section below!
