Residential property values in top UAE markets down in 2020

Residential property values in top UAE markets down in 2020

With population levels in UAE's top real estate markets, Abu Dhabi and Dubai, estimated to have declined by roughly 5% in 2020, growing levels of supply and existing vacancy levels, there has been a steep decline in residential property values in both these emirates, according to global real estate consultancy Knight Frank. Whilst population growth is expected to return in 2021, it will likely not be at least until late 2022 before the population levels return to their pre-pandemic levels, stated the expert. 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, Knight Frank stated in its UAE Property Value 2021 Movement report. Since the outbreak of the Covid-19 global pandemic, there has been an unpresented curtailment of economic activity and social mobility and as a result, unsurprisingly, global GDP was forecast to contract at the fastest rate seen in decades. Despite the initial shock and considerable levels of uncertainty, Knight Franks said it had not seen the worst-case scenarios come to fruition. On the back of a mixture of fiscal and monetary stimulus packages enacted in around 197 countries, the IMF has revised