Shrinking population to continue to put pressure on #UAE property prices - Arabianbusiness

Shrinking population to continue to put pressure on UAE property prices - Arabianbusiness

Pre-coronavirus pandemic population levels in the UAE are not expected to return until late 2022 at the earliest, impacting the country's real estate market recovery, according to new research.

Knight Frank's UAE Property Value 2021 Movement report said the resulting lower level of demand for real estate will be further compounded by a continuing influx of new supply, particularly in Dubai.

This is likely to continue to put pressure on property prices during 2021, Knight Frank noted.

"With population levels in Abu Dhabi and Dubai estimated to have declined by roughly 5 percent in 2020, growing levels of supply and existing vacancy levels, residential property values in both emirates fell in 2020. Whilst 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," the real estate consultants said.