Property prices in the UAE depend on many factors. According to experts, the reduction in the construction of new residential projects will definitely lead to an increase in apartment prices in the near future.
Since the beginning of this year, the cost of detached houses has decreased by 3.2% in Dubai. Apartments in high-rise buildings have become cheaper by 1.1%, but despite this, apartment sales were considerably higher than villa sales in 2020.
At the end of 2019, the rent rates decreased by 2.4% in Dubai, as the number of property rental offers is currently exceeding its demand.
According to the International Monetary Fund (IMF), due to the reduction in oil costs and the coronavirus pandemic, the economy of the United Arab Emirates is going to decline by 3.5% in 2021. However, the real estate market has been undergoing changes since 2008 in the United Arab Emirates, so the country’s authorities have learned how to act in a crisis to minimize the economic decline to a lowest level.
The economic downturn was observed from the end of 2008 to the first half of 2011, when the cost of housing and commercial properties decreased by 53%. By the third quarter of 2011, the housing sector began to recover after the global economic crisis, and property prices rose by 67%. Due to the coronavirus pandemic, the demand for real estate slightly decreased in 2020. The property market offered 56,000 new properties in 2019, and 575,000 homes have been sold in Dubai now.
The new housing sector, Abu Dhabi, was refilled with 8,000 new options last year. There have been 265,000 new apartments sold in the city by now. Due to the supply and demand difference, property prices in 2020 and early 2021 are not going to increase. However, the situation may change because of the world exhibition, “Dubai Expo”, which is planned to be held in the country in 2021. According to real estate experts, this event will boost home sales and rents.
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