COVID-19 has taken a significant hit in many workplaces. COVID-regulated measures have had an increasing impact on organization policies and the implementation of new workplace arrangements over the last 18 months. As the number of cases increase, organizations across the world have taken an extra step into maintaining precautionary measures, and remote work is now making its way back into the corporate sector.
As more people spend more time at home, it’s become more important to invest in their living spaces. Getting a place close to the office is lower on the priority list as work from home policies gradually take hold. As a result, the market has seen a few noticeable trends emerge.
We asked a bunch of experts at Dubai-based real estate agency, ‘West Gate Real Estate’ for some insights on market trends and strategies and here’s what we found.
Midde East Trends
The real estate market in the Middle East has been steadily recovering following the recent decline in the market cycle. Fortunately, the tourism industry has aided the property market. Footfall in hotels, restaurants, and shopping malls increased by nearly 60% between September and October 2021. (Bloomberg, 2021). Despite its postponement, EXPO 2020 has aided the market in regaining momentum. Given that foreign ex-pats account for 90% of Dubai’s population, WFH policies are unlikely to have a significant impact on the city’s continued growth.
Distressed Properties
Investing in distressed properties is similar to investing in gateway cities because distressed properties are properties on the verge of foreclosure. In today’s market, homeowners and lenders are offering rates that are 10 to 15% below market value (Zawya, 2021). Investors now have a better chance of obtaining mid-market properties.
Despite the disadvantages, such as the cost of repairs and the investment required to bring it to the desired state, there are numerous advantages to consider. For starters, distressed properties anywhere in the world, including the Middle East, can be purchased at significantly lower mortgage and interest rates than usual. (For more information, click here.) Finally, for those with a strong financial grip, this investment will most likely have a high potential for profit, allowing them to sell it for a profit.
Global Insights
Investors all over the world are becoming more prone to investing in mid-market properties as market values fall. As a general rule, these are investments made in urban metro areas popularly known as, ‘Gateway Cities’
In simple terms, gateway cities are up-and-coming cities once thought to be the ticket to the American Dream. These cities were urban metro areas with a strong regional economic foundation. As more companies adopt WFH policies, the value of living in urban areas has gradually diminished, and gateway cities have emerged as a great opportunity for investors looking to attract remote workers by offering properties at below-market rates.
With that being said, depending on the region, it is always best to consult with local experts who are well informed of real estate know-hows and market strategies. Several agencies present within the Middle-east such as West Gate Real Estate, are well-versed within the field, and have what turns a good investment into a great one.
Also read: Your Trusted Home Buyer for Selling Your Home Quickly
