How Does Ramadan Affect the Dubai property market?
Carl Allsopp, COO of Allsopp & Allsopp explains the misconceptions between the holy month of Ramadan and the Real Estate market of Dubai.
Do a lot of people travel during Ramadan?
We all live in a cosmopolitan and maturing city. Residents of Dubai have jobs, have children in schools and we tend to carry on with our usual routines during the Holy month of Ramadan.
There are over 300 schools in Dubai and this year Ramadan has fallen in term time which will result in fewer people travelling.
Over the past 5 or 6 years, Ramadan has happened to fall over the summer months. This has led to a presumption that families travel during the month of Ramadan but that is far from the case.
When children are on their summer school holidays there are a lot of families who will choose to beat the heat and head to cooler climates, myself included. This should not be associated with Ramadan and people should not presume that a lot of residents will travel during this time.
Any special Ramadan Property Offers?
During the month of Ramadan, Dubai property developers demonstrate their generosity to potential buyers with exclusive offers.
This Ramadan, Emaar Properties have put together a few exclusive offers for home buyers to avail. These include a 100% waiver on Dubai Land Department Fees, a 3-year waiver on service charges on the property and a 25/75 offer whereby buyers pay only 25% of the sale prior to move in and pay the further 75% over a three 3-year period post completion.
However, buyers in the secondary market can sometimes misinterpret Ramadan as a time to get a distressed sale and can even hold off buying until the Holy month arrives. This has also become more apparent over the last 5 or 6 years, again, because Ramadan has happened to fall over the summer months.
When schools break up for summer this can occasionally be a time where families will move on and sell their property but, gone are the days of distressed summer sales. We see fewer people leaving the city and more people taking advantage of the school holidays to move to a different home in Dubai.
It is a myth that sellers will slash prices during Ramadan and over the hotter summer months and this is something buyers should be aware of.
Do you see less people viewing properties during Ramadan?
The simple answer is, no. As a matter of fact, we often see more viewings in the month of Ramadan than any other month of the year. The reduction of working hours during the Holy month gives buyers and sellers more time.
Allsopp & Allsopp also tend to have more buyer and tenant registrations during Ramadan for the same reason – people have more time to look for homes.
We find that with more time, buyers and sellers are less stressed with their day to day lives and have more time to focus on future plans.
According to Property Finder, the most property searches during Ramadan take place from Sunday through to Wednesday. Their data also shows that the property market keeps its frenetic pace during Ramadan.
What advice would you give to sellers and landlords during Ramadan?
I would suggest that sellers and landlords are flexible with viewing times. One change we do notice during the month of Ramadan is that viewings can take place later in the day. Our brokers are working late into the evening to ensure fasting clients receive quality service when it is most suitable for them.
If you are looking to sell or rent out your property over the months of Ramadan, it is essential that you take fasting times into consideration. It is also hugely important to keep constant communication with your real estate broker to ensure they are aware of the times available to view your property and the most convenient times to contact you.