Ramadan is a holy month, and is diligently observed by the Muslim population of the UAE, during which they pray, fast and are engaged in charity work. But beyond that, it's also a good time for real estate investment. Although the overall market activity may seem slow, prospective buyers can benefit from special offers and discounts.
How does the social life of the country change during Ramadan?
In 2023, the holy month will occur from March 23 to April 21. This is time for religious formation, self-discipline and expression of good intentions. The social aspects of the country changes significantly, because priority is given to cultural and educational events dedicated to Ramadan and Islam, whilst amusement and entertainment events are practically excluded. Muslims fast during daylight hours, therefore many establishments and public places, as well as government institutions change their hours of operation during the fasting period.
Many tourists and foreign residents prefer to travel around the UAE during this season, regardless of the possible inconveniences associated with the restrictions imposed under Ramadan. The reason for this can be found in the attractive offers and discounts. Such profitable promotions are offered by tour operators and airline companies, as well as local shopping malls and retail centres. Shopping enthusiasts are aware that most brands and trademarks offer discounts of up to 70% on their products and some of them produce limited-edition items in honour of the holiday.
Important! The majority of restrictions do not apply to tourists, but it is advisable to understand and follow certain rules of conduct to avoid causing any offence to locals and avoid receiving a fine. Read more about the norms of behaviour during Ramadan in this article.
However, very few people know that visiting the Emirates during the holy month is also worthwhile when it comes to property purchase. It is believed that, unlike shopping malls, which expect an increase in sales during Ramadan, the real estate market suffers a decline. Indeed, business activity is slightly reduced as people are fasting and shifting their focus towards charity, devotion and spending more time with their families. But for those intending to buy property within this month, it is a perfect opportunity to benefit from special offers, generous discounts and emerging projects.
Why is it worth buying property during Ramadan?
In order to celebrate one of the most important holidays for Muslims, many real estate developers and agencies create special offers for their customers that are not available at any other time of the year. The promotion may include a discount of the property price, extra amenities or services provided as a gift, favourable payment or instalment plans, and even exemption of fees or taxes.
Important! Generous offers for the occasion of Ramadan are usually introduced by all major real estate developers. For example, in 2022 Reportage Properties discounted 10% on all their projects. A complete list of the most prominent developers in Abu Dhabi and the recommendations on how to choose a reliable company can be found in this section.
Advantageous terms intended to stimulate investment in the UAE are also offered by banks and mortgage agents. Future buyers can receive all the benefits of reduced interest rates or shortened loan periods. Such favourable offers will make it easier to take a loan out and buy the property of your dreams.
As mentioned above, the amount of transactions decreases during Ramadan, but smart investors can use this slowdown to their favour. Since there are not many inquiries within the market, there will be very limited candidates for the property and you will be able to choose the right option for you at a smoother pace. You can take advantage and negotiate with the developer for a better deal.
Furthermore, to celebrate the occasion, many major developers are announcing new launches and incredible projects. Thus, investing in off-plan real estate doubles the benefit as discounts and promotions are added to the affordable prices and attractive terms of purchasing a residence at the initial design or construction stage.
What should be kept in mind when buying real estate during Ramadan?
Ramadan offers unique opportunities that are worth taking advantage of when considering an investment in the UAE real estate market. Regardless of whether you want to buy property in Abu Dhabi during Ramadan or during any other period, it is not appropriate to expect an instant return on investment. Only proper long-term planning and balanced decision-making will lead you to a good result and increase your funds. We recommend consulting an experienced Metropolitan Capital Real Estate agent to determine the right investment strategy for you.