In the last week, the real estate market has witnessed sales activity for the first time since the coronavirus (COVID-19) pandemic started, according to Mohammad Degheady, real estate broker and franchise owner of RE/MAX Al Mohager.
Degheady said this was due to postponed purchase decisions and an easing of the government’s precautionary measures, as well as the announcement its plan to coexist with the virus.
“Full recovery in the real estate sector is expected to take place a year after the crisis,” Degheady said. He added that the recovery includes new expansions and investments in the sector.
He also said that real estate investments would decrease as a result of customer preference for cash liquidity due to the current crisis.
Degheady pointed out the properties most affected by the crisis are administrative, commercial, and medical projects, followed by residential projects, then rentals.
He recommended that real estate developers facilitate communication with clients, explaining that it is possible to provide virtual tours services to units to create demand. This would also allow for customers to protect themselves in light of the current widespread fear of spreading the virus.
Moreover, developers have to initiate innovative and attractive offers for clients, including providing long-term payment plans to encourage customers to take that purchasing decision.
In addition to this, strict and incapacitating conditions in contracts in case of late payment should be abolished, as these conditions are sufficient to make many customers reluctant to buy, Degheady said.
He further recommended that brokers exert more effort in preserving their client base and maintain market sales.
“There is not a single company that has postponed or reduced instalments due on customers yet, because they have financial obligations and delivery times,” he commented.
He projected that his company would achieve 50% of its targeted sales by the end of the current year, to compensate these sales next year.