80 per cent of UAE property prices to stay at 2020 levels
Consultancy says home prices in Dubai will likely see a bounce only in 2022
There is still time for likely property owners to make up their minds — prices in 80 per cent of the UAE freehold residential market will likely remain at 2020 levels. And it could be next year before property values start to make some headway, according to the consultancy Knight Frank.
Sure, there are certain areas in Dubai that is already showing signs of price recovery, especially top-end destinations such as the Palm fronds and Dubai Hills. But for the wider market, homes there are still coping with the double-digit price dip of the last two years.
In its latest update, Knight Frank says that population growth needs to see a spike for property values to make gains again.
We forecast the vast majority of the UAE’s real estate market will see values remain at similar levels to 2020 or even begin to increase in some cases.”
Taimur Khan | Head of Research at Knight Frank Middle East
Residential property
“With population levels in Abu Dhabi and Dubai estimated to have declined by roughly 5 per cent in 2020, growing levels of supply and existing vacancy levels, residential property values in both fell in 2020,” the report says. “While population growth is expected to return in 2021, it will likely not be at least until late 2022 before we see population levels return to their pre-pandemic levels.
“In Dubai, this lower level of demand will be further compounded by a continuing influx of supply, which in turn is likely to continue to put pressure on property values.”
“We forecast the vast majority of the UAE’s real estate market will see values remain at similar levels to 2020 or even begin to increase in some cases,” said Taimur Khan, Head of Research at Knight Frank Middle East.