Landlords in the UAE and elsewhere in the Gulf have their work cut out – nearly half of respondents in a new survey say they are likely to shift to a new property in the next 12 months. Cuts in salary will be prime factor in getting them to move. Lower rents will have a lot to do with their decision.
Even though activity levels have bounced back, albeit still lower than pre-COVID-19 levels, a general inhibition towards spending a lot of time away from the home has led people to relook at their current residential space, it means make necessary upgrades, or considering relocating to suit their newfound lifestyle.
Before the pandemic, Abu Dhabi, Dubai, Sharjah, were witnessing a gradual improvement in demand. Developers will now need to reconnect with potential buyers. A few developers have been successful in doing the same with the launch of innovative payment plans and schemes such as rent-to-own.
And after Covid 19 lockdown, the demand is increasing for more space including study rooms as a result of changing work patterns. Apartments without balconies or with small ones are proving more difficult to sell/rent.
The number of end-users and tenants moving from apartments to villas and townhouses is increasing and expected to continue. In post COVID-19 scenario, communities will start to become more of a place called ‘home’ rather than serving as a temporary transitional place where people often come and go.