UAE-based leading real estate developer DAMAC’s Senior Vice President, Amira Sajwani said that the property industry in the region could get a boost from positive news about the rollout of COVID-19 vaccines and the 2021 World Expo event, but it may take a year or two for the sector to bounce back and return to pre-crisis levels.
The demand for homes, villas, and commercial spaces in the UAE has been lower over the past few months because of the economic difficulties that arose from the coronavirus pandemic. The sector suffered a tremendous hit as the economies shut down worldwide, at the outset of the health crisis.
The uptake of homes has recently picked up with the reopening and easing of COVID-19 restrictions, but rents and sales rates are still lower than the rate seen before the crisis. At the same time, developers have forgone the plans of new projects, which has somewhat addressed the large supply of glut of homes.
“Property prices have dropped, and we are expecting further declines over the final quarter of 2020 and into 2021, with the ongoing economic impact of COVID-19 and a likely reduction in the UAE population, both key drivers of Dubai residential prices, set to hamper market performance. While there will be challenges in the coming year, there are a lot of positive developments that point to increased activity. I cannot predict the exact moment when this will happen because there are several fluctuating developments and factors. I do think, however, with (the COVID-19 vaccine rollout), this could mean more people will be traveling and there will be an acceleration of tourism.”
“Many analysts have begun to report signs of recovery in the market, however, I believe it will be a long one, perhaps 12 to 24 months,” she further added.
DAMAC Properties, based in Dubai, is an Emirati property development company. The company was publicly listed on the Dubai Financial Market in January 2015. It operates internationally providing residential, commercial and leisure properties and has a presence in the UAE, Saudi Arabia, Qatar, Jordan, Lebanon, Oman, and the United Kingdom.