Various reports examine UAE's real estate market performance during 2020 and they predict the changes of real estate sectors such as hospitality, office, retail, residential, industrial, and logistics in 2021. No doubt, the covid situation caused a significant disruption in almost all real estate sectors in the previous year. The industrial owners & occupiers have to cooperate with the important adjustments in the business operations as a result of the statutory restrictions on mobility and capacity. It is still unknown that the pandemic will lead to structural shifts for the different classes. Well! With the estimated availability of the coronavirus vaccine in 2021, the scheduled Dubai expo is starting in October, and the 50th National day opens a new way to showcase Dubai in the post-covid-19 world.

Residential Market Performance:

  • Dubai's residential market has experienced a major shock and the market faced so many difficulties during this period. It is estimated that the covid vaccine will be rolled out in 2021, and the rescheduled Dubai Expo will start on 1st October 2021. The residential estate is hoping that a rebound will occur and Matic will return to the higher levels.
  • The tenants are still in the driving seats as the residential property decreases by 10 as of Q3 2020. The demand for secondary market residential properties left behind the transaction volume for the off-plan units but the dominating cash transactions continued.
  • The impacts of the covid situation on the business are said to be the driver to change the office space requirements.
  • The reduction in the international flights because of the covid travel restrictions impacted the football and spending bricks and mortar stores also. The economy experts depict that the volume of total retail sales of UAE will decrease by 10.3 percent in 2020. But the sales are expected to increase by a percentage of 2.5 until 2024.
  • Residential Market Overview:
In UAE, the residential real estate market is ready to make progress at a CAGR of 12.36% in the year 2026. The residential estate market stopped because of the pandemic precautions, as the government implemented the lockdown in the country. so that the citizens were forced to stay in their homes. Because of the high oil prices, the GDP growth in UAE in the year 2019 remains positive. The production levels are also increased in the business regulations of a few cities such as Abu Dhabi & Dubai.
The residential market of the United Arab Emirates is slipping because of the high competition and less supply of housing units. The prices in real estate at Dubai and Abu Dhabi residential markets decreased by 23 percent and 18 percent respectively since 2018. However, the experts predict that things are under control by 2021. The progressing transaction value and investment in the real estate sector of UAE is the major driver of the residential property that leads to the increase in new development projects.
Key Market Trends of the Residential Market:
In the UAE, 23,000 new houses will be constructed in the year 2019. An increase is witnessed in the residential segment and that encourages the developers to focus on the completion of the existing under-constructions. The new supply was in the form of stand-alone towers and projects that offered less than 2000 units per project.  A few of the prominent supplies for housing units in Abu Dhabi include 707 units at Al Ghadeer.
Competitive Landscape:
The residential real estate sector in the UAE has become highly competitive now. The increasing expenses on the infrastructure, relaxed laws for the foreign investor's government initiatives to drive the investments that are expected to bring the development in the real estate sector that will further also enhance the interest of more investors.  Aldar Properties, Damac properties, Nakheel Properties, Deyaar properties, and Emaar properties are some of the major real estate players in UAE.

Final Words:

In January 2021, UAE made the highest sales transactions in a month as compared to the past few year's statistics. According to the experts, the next five months are also very good for the UAE economy and will break the records. It seems that the growth will not decrease for the upcoming years. The June statistics show that the real estate sales transactions are worth 14.76 billion DHS.