Real Estate Market During COVID-19
Warren Buffet said that “You have to be greedy when everyone is fearful and fearful when everyone is greedy.” In line with that, Dr. Mahmoud later mentioned that he believes it is a great opportunity for those that are capable of investing to really start searching for good deals. Although the market might continue to drop, unsure of how long, it will eventually pick back up after this pandemic and the lockdown has been lifted. He also shared some statistics from China as they have lifted their lockdown and have already seen a 30% increase in their real estate transactions.
Dubai is known for its resilience and risk management; it is in the DNA of the city. If we just look at the airport in the 1960’s, Dubai only had 2 airplanes coming in hired from Pakistan and today it sees over 200 airplanes and people from all around the world.
Dr. Mahmoud also shared that Foreign Policy Magazine talks about the word “VUCA” which means Volatile, Uncertain, Complex and Ambiguous. They use this term to describe the current situation in the world, but Dr. Mahmoud believes while yes, this is the current status with COVID-19, the world is still full of big opportunities. This situation can give people, cities and policy makers a chance to reset their cities to make them more affordable and sustainable.
Dubai real estate market forecast
“It is a situation that we are not used to, and it is the worst since 1929 according to IMF and the World Economic Forum. However, at the same time this is a golden era of opportunity and affordability that we probably won’t see again for another 10 years.” said Dr. Mahmoud.
He later discussed the difference between a short- and long-term vision and how it plays an impact on the market. The German central bank and a few other global universities did a case study that proved that in the last 150 years, real estate and housing was the best asset to have.
Dr. Mahmoud also stated that “I am big believer that this is the right time to buy! I am not pushing anyone to buy but I do think that if you don’t buy when current prices are 40% less than 2013 and 2014, then when do you buy?”