According to our team’s UAE 2020 review, with UAE residential prices and rents showing more stability over the year’s opening months, COVID-19’s economic impact disrupted market performance from Q2 onwards. In fact, the rental sector saw broad declines overall. The average apartment rents in Dubai and Abu Dhabi falling by 12.4% and 4.8%, respectively.
While villa rents also fell last year, the pace of decline eased over H2. This is supported by a rise in post-lockdown demand for properties with outside space. Annually, Dubai and Abu Dhabi villa rents recorded declines of 5.3% and 3.6%, respectively.
In addition, sales prices faced downward pressure, although performance increasingly varied by property type and location over 2020. Further, the average apartment prices ended the year 9.5% and 3.8% lower in Dubai and Abu Dhabi, respectively. In line with the rental sector, villa prices saw a more moderate fall. This shows a decline of 3.6% in Dubai and 3.4% in Abu Dhabi.
Furthermore, 2020 witnessed the announcement of several new policy initiatives likely to support the UAE’s residential sector. This include Dubai Land Department’s ‘fractional title deed’ scheme, Dubai’s new remote working visa and the launch of a
new retirement programme. These initiatives should serve to bolster the market, and create new developer opportunities, moving forward.
View our full UAE 2020 Review by downloading the document below.