Covid-19 was optimally drastic for all the countries. The pandemic affected almost all the businesses and led to the decline in the economy too. Just like all other businesses, the property business also gets affected quite drastically due to it. The operations of construction, renting, buying land or property, etc., got reduced. Everything got stuck quite badly, and hence the survival became quite challenging! There are amazingly huge buildings in the UAE and offer a variety of properties to invest money in. The property business took steps to sustain its sales. At the time of Covid, the working was shifted from office to home. Hence, rental charges for the offices and shops also got affected.
Challenges for Property Business in UAE Because of Covid-19:
Reduced Sales of Buildings:
The health concerns forced the masses to stay at home. Many of the construction tasks suffer from delays, indeed the massive delays. A noticeable drop was experienced in the sales of homes too. The property business was unable to sell their properties at a reasonable price. The prices automatically got reduced as the jobs and other sources of income were affected. As the sales declined, so the businesses rushed towards reducing the prices of buildings. It ensures to continue the sales but not at much profit which was happening before. The financial crises and dropped sales of the home were observed in the months of May and April. However, it improved in the summer season when the Covid pandemic depicted the reduced influence on the lives of the masses.
No License Renewal:
The real estate business is a highly prevalent and effective one in UAE. Indeed, people throughout the globe rush towards the UAE for investment. The pandemic proved to be a massive hurdle and generated an environment of stress throughout the globe.The renewal of the majority of the real estate companies was missed in 2019. In Dubai, almost 486 real estate companies were without the license renewal. The selling of the businesses becomes tough without the license renewal. The legal dealings got delayed too, and hence the registration process, etc., became frustrating and irritating.
Online Selling of Real Estate Properties:
Although Covid minimized the selling and buying of the real estate properties, it helped sustain the sales. The graph for sales did not rise at all, but it was moving by and by. The credit for this goes to the strategies adopted by the real estate agencies of the UAE.The real estate businesses shifted their business to an online approach. They started showcasing their properties to the masses online. Hence, they can view the property and can discuss it quite easily. The contact details are also offered at the online sites to facilitate the masses in order to avoid any confusion. It helps much in eradicating any issue that comes to the mind of the masses regarding the purchase of the property.
Easy Investment and Quick Payment:
The complex installment details are also presented to the masses quite easily. The online approach for selling the product is ideal for generating fabulous sales. In covid 19, the people reside inside their houses and explore for the best suitable option for themselves to choose. They could pay for the buildings that they like by using an online platform.Moreover, they better understood the installment plans and invested in either single or multiple buildings as per their budget. The flexibility of the online approach for property selling enhances the number of agents. Their numbers got enhanced over the past two years. The enhanced real estate brokerage led to the survival of the business.
In a Nutshell:
The performance of property business in UAE was comparatively better than in other countries. This credit goes to adopting the right strategies, climate, demographics, and profitability to invest in the UAE. The investment in both commercial and non-commercial buildings was satisfactory in Covid-19 in UAE. Initially, the business for the real estate got massively shattered, and no sales were made at the time of lockdown. But with time, it improved, which became the source of supporting and strengthening the economy a bit.
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