Tuesday, 02 January 2024 12:17 GMT

UAE's Record Rains: Property Rates Shoot Up At Flood-Resistant Communities


(MENAFN- Khaleej Times)

In April 2024, Indian expat Sumayya Khan and her husband were shopping for their forever home in Sharjah. Having lived in the UAE all their lives, they wanted to make a real estate investment in which they hoped to live with their daughters. It was between their hunt that the torrid April 16 floods happened.

“Some of the communities we were looking at were completely flooded,” she recalled.“That is when we noticed that Sharjah Sustainability City was fairly flood resistant. As soon as we visited, we put down our deposit and booked a house for ourselves."

"The following week when we came for a tour, the real estate agent said that all the remaining units in the community had been snapped up that week by others like us who were impressed by how it was not impacted by the floods. We feel like the rain was a good litmus test for us to make our final decision.”

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One year after record-breaking rains hit the UAE , real estate experts in the country say that more people are enquiring about the ability of communities to resist floods before making purchases.

Half of buyers ask about flooding

“Almost 50 per cent of my buyers ask me about the flooding, but it is not always a deal breaker,” said Jeff Raju Kuruvilla, CEO of Manifest Real Estate.

“Many buyers are reassured by Dubai's quick recovery and government response. Developer actions like Emaar offering free repairs or investments in upgraded drainage systems are also a big plus. For instance, areas with modern infrastructure, like Jumeirah, Meydan, Dubai South, Nshama have fared better due to higher elevation or better drainage and are seeing sustained demand.”

According to Ibrahim Abdulkarim, Deputy Head of Secondary Sales of Metropolitan Premium Properties, said that some communities saw a“temporary dip” in buyer interest due to flooding there during the April rains.

“However, as the causes - such as the malfunctioning sewage pump - were addressed and preventive measures implemented, confidence began to restore,” he said.“This reflects the broader trend in Dubai, where the market's resilience and proactive governmental responses have reassured investors and buyers alike.”

Jeff also agreed that there was a dip in some areas.“Some buyers and investors hesitated over fears of future flooding risks,” he said.“I did see many landlords reviewing insurance coverage to mitigate future losses.”

Bouncing back

Despite these dips, the property market bounced back very quickly. According to Thomas Wan, Managing Partner at Refine, the floods had a“temporary impact” but UAE showed its resilience and rapid recovery.“Just one month later, the ValuStrat Price Index showed a 27.2 per cent annual increase in property values, with villas up 32.5 per cent and apartments 22.4 per cent. This momentum carried into 2025, with the index reaching 210.8 points in March - a 25.9 per cent year-on-year rise.”

He added that the impact of the floods on buyer sentiment was short-lived.“There is now greater awareness of the importance of flood-resistant features, with sustainable and resilient urban planning gaining prominence in new developments,” he said.“Many developers are now adopting proactive mitigation strategies and investments in infrastructure to help mitigate future risks and ensure long-term sustainability.”

Ibrahim added that developers had taken steps to enhance infrastructure to mitigate future flood risks.“For instance, Dubai has announced a significant investment of $8.2 billion in a stormwater runoff system to increase drainage capacity by 700 per cent, aiming to manage over 20 million cubic meters of water daily,” he said.“Some communities, like Mudon, have developed a strategic dewatering plan in collaboration with the Roads and Transport Authority (RTA), involving diverting stormwater to designated lagoon areas. These initiatives demonstrate a commitment to enhancing resilience against future climatic challenges”.

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