Last week was UAE’s biggest challenge faced since covid - and while not at the same magnitude it will impact the markets in many ways.

Trends we may see:

• This kind of weather event is usually stimulatory for construction sector; consumer spending patterns will shift towards home-repairs & emergency spends. On the other hand discretionary spending may decrease temporarily.

• ⁠More squeeze on villa & townhouse demand as a lot of existing supply may take weeks or months to recover & some areas may have lost some desirability. There is current surge in demand for hotel rooms & Airbnb.

• ⁠Central Sharjah to Dubai relocations likely to increase especially towards suburbs (like Valley, Emaar South & Damac Hills 2) as well as other affordable Dubai communities - which could further pressure rents & prices. We are likely to see rise in demand for off-plan resale options (communities handing over in the next 12 - 24 months). Expect a further rise in demand for Sharjah’s newer & freehold suburbs

• Relief has come in form of the largest developer Emaar announcing to fully repair any damaged property which hopefully will be followed suit by other major Govt developers which is majority of the supply of villas & townhouses. Multiple initiatives published yesterday to ease hardship of affected communities.

• ⁠Buyers will be keen to learn about this weather event’s impact on the property & the community. We may see below market value opps for ready / damaged homes as wedge deals.

• ⁠Developers may improve & modify designs of current under-construction & planned developments - advantages that may spur off-plan desirability (not that it was needed).

• ⁠Unsurprisingly Govt action is swift - multiple infrastructure revamps & strategies announced; some enacted. Increase in Govt spending on infrastructure in next 24 months.

This event was within a an overall tumultuous week which also included unprecedented Middle East tensions, fear in stock markets, rising Dollar & yields - these continue to be uncertain times and global markets will likely stay volatile till US Elections.

So in a pretty bearish week - it was great to see a society keep its head, navigate and rebound with great determination and without much of a fuss. A great advertisement to the world of our own unique model.