Wednesday 1 April 2020

Time to buy? Distress sales plague #Dubai property market hit by COVID-19 | ZAWYA MENA Edition

Time to buy? Distress sales plague Dubai property market hit by COVID-19 | ZAWYA MENA Edition:

Dubai is seeing an increase in distressed property sales as disruptions to business owing to the coronavirus pandemic have put home owners out of jobs or on unpaid leave. Owners are listing residential properties at a 10 to 15 percent discount on the current market price as they seek to liquidate their assets to tide over the crisis.

“There has been a sudden disruption to the property market since the COVID-19 outbreak in Dubai. We have seen a few distress deals in the past few weeks. Landlords who had listed their properties to sell for the past few months have willingly taken greater reductions in price to sell seeing this global crisis unfold,” Farooq Syed, CEO, Springfield Real Estate, told Zawya.

Most such sellers had invested in multiple properties and had already been holding for a long time in the hopes of selling during better market conditions, but the effects of the outbreak soon proved to be far worse than anticipated. With every business affected, sellers who cannot hold anymore or have insufficient cash flow to meet their household expenses and mortgages are putting up their properties for sale.

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