The residential real estate market in Dubai felt by 8.8 percent year-on-year in 2019, according to data released by the Dubai Land Department (DLD).
Rents in Dubai also declined during the same period. Rents were down by 7.2 percent in 2019.
However, rental yields remained unchanged at 6.4 percent.
The coronavirus pandemic has disrupted industries across the globe and pushed the economy into recession. Sectors such as logistics, hospitality, aviation and real estate are the worst hit.
According to real estate consultant CORE, in the first quarter of 2020, residential unit handovers in Dubai were down 27 percent year-on-year, while new project launches were also down by 14 percent.
During the period, around 5000 residential units were handed over, compared to 13000 in the first quarter of 2019. The number is expected to further decline in the second quarter, as the pandemic has resulted in lockdowns not only in the UAE but across the globe.
Prathyusha Gurrapu, Head of Research and Advisory at CORE told the media, “We have seen a slowing down of handover volumes compared to the same period last year. Due to ongoing COVID-19 restrictions, further downward revisions are expected on supply forecasts as they will inherently depend on the period of the pandemic and the pace at which functionality returns coupled with buyer confidence as developers adjust to ongoing market conditions.”
Earlier this year, Knight Frank, a residential and commercial property consultancy based in London, reported that a total of 62.500 residential units are expected to be completed in Dubai’s property market this year.