S&P confirmed that the real estate prices in the United Arab Emirates will likely decline in 2020 due to the Coronavirus outbreak, and also confirmed that this real estate slump will continue until 2021. As a result of the lockdown in the country, airport closures and travel bans, which led to Keeping investors away from the real estate market. According to statistics, the volume of residential sales transactions in Dubai decreased by 42% compared to the months before the virus appeared.
It is recognized that the real estate sector is an important part of the United Arab Emirates;s activity, but until now it has not been known when the properties will return again due to the lack of expectations about the rate of spread of this virus. As the number of cases exceeded 8,200 cases in the United Arab Emirates.
Economists in Dubai are facing the crisis of low real estate prices, because Dubai is considered the most vulnerable and affected by this crisis in the Middle East due to the strict lockdown and bans against the Coronavirus ” Covid-19″. Where the lockdown procedures in the emirate – which is the place of the tallest building in the world and the largest mall – witnessed the closure of all companies and stores, except for the basic services.
The rate is expected to decrease between 5 to 6% this year if this virus ” Covid-19 ” continues until the summer.