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| Sheikh Zayed Road, Dubai, UAE. Image used for illustrative purpose. Getty Images |
Dubai’s residential property market, which has recently seen a surge in demand from investors and first-time buyers, is expected to continue to face pressure this year, according to a new analysis.
The values of apartments, villas and townhouses across Dubai and Abu Dhabi fell in 2020, primarily due to a fall in demand caused by the coronavirus pandemic.
The size of the population in both emirates is estimated to have fallen by 5 percent last year as expatriates hit by job losses opted to return to their home countries. “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,” said Knight Frank in a report released on Tuesday.
“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,” it added.
Dubai is expected to see the delivery of more than 41,000 new apartments and villas this year, higher than the completed units in 2020, according to Asteco. In Abu Dhabi, new supply could reach more than 7,000 units, based on the estimates shared by real-estate consultancy CORE.
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