Knight Frank said in a report on Sunday that both federal and local regulatory changes have boosted the UAE real estate market in 2020.
The mitigation of a series of geopolitical issues will also further strengthen the fundamentals of the UAE real estate market.
apartment prices fall
residential sales prices in Abu Dhabi in 2020 fell by an average of 2%, down from 7.5% in the same period of the previous year. Although the average price of apartments has fallen by 3%, the average price of villas has risen This is the first price increase since 2014.
In 2020, residential rents in Abu Dhabi continue to fall, with average rents falling by 4.3%, and average rents for apartments and villas by 4.6% and 2.6%, respectively.
Preliminary data show that there will be nearly 33,000 residential transactions in 2020, which is a 16.4% decrease compared to 2019. The main reason for the weak demand is the sharp drop in unplanned sales.
As of December 2020, the average price of apartments in Dubai has fallen by 7.1%.
supply decline
The consulting firm predicts that housing supply will begin to decline in Abu Dhabi in 2022, and Dubai will begin to decline in the second half of 2023.
Knight Frank said: “Assuming that the trend remains unchanged, mortgage interest rates remain at historically low levels, and loan-to-value ratios remain at current levels, UAE real estate prices are likely to bottom out in 2022.”
From gulfnews
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