Prices in the UAE real estate market are still falling due to the economic consequences of the emerging Corona epidemic
About eight out of ten (74%) of the UAE residents who were called by an investment company said. They expect the prices of apartments and villas to fall in the second half of 2020, while almost equal numbers of tenants have received fewer rents.
These are some of the results released by Peninsula Real Estate Investment and Research, as part of the second home morale survey.
“The research has shown little morale toward real estate in the Gulf,” said Christopher Pine, chief economist of the company.
Chris Roberts, CEO of the Eletzam Asset Management Group, added: “The survey results reflect the negative sentiment caused by the COVID-19 pandemic and its significant impact on the global economy during quarter one and quarter two.
Real estate and rental sales in the United Arab Emirates have seen a downward trend in recent years, mainly owing to the abundance of huge supply. This decline has recently been exacerbated by the pandemic of the virus that has left investors cautious, and many tenants have been unable to upgrade their housing or keep renting amid job losses and salary cuts.
In its latest analysis, The company said that the decline in commercial and residential rent in Dubai could “increase” while the market conditions in Abu Dhabi “worsen” as demand falls.
The value of apartment rentals, villas, and offices in Dubai fell by 13 percent, 10 percent, and 13 percent, respectively June compared to the previous year.
In the latest survey, 75 percent of UAE tenants said they had renegotiated their rent in the past six months, and their rents had declined as a result. One-third of respondents reported that their rent had declined by 10 percent or more.
Some 59 percent of respondents expected their homes to fall within half of the year. Overall, UAE residents expected the rents and costs to fall by 8 percent within the remainder of 2020. In Saudi Arabia, 40 percent said they expected rents and costs to fall within the half of the year. However, Roberts said the newly announced stimulus programs by the UAE government, along with a gradual reopening of varied sectors, could lead to a shift in sentiment later this year.
However, Roberts said the newly announced stimulus programs by the UAE government, together with a gradual reopening of various sectors, could lead to a shift in sentiment later this year.