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Global Market Insight 03 February 2021

Observer UAE 2020 Review

After a strong start to 2020, with UAE residential prices and rents showing more stability over the year's opening months, Covid-19's economic impact disrupted market performance from Q2 onwards.

The rental sector saw broad declines overall, with average apartment rents in Dubai and Abu Dhabi falling by 12.4% and 4.8%, respectively. While villa rents fell last year, the pace of decline eased of H2, supported by a rise in post-lockdown demand for properties with outside space. Annually Dubai and Abu Dhabi villa rents recorded declines of 5.3% and 3.6% respectively.

While the UAE's residential sector will likely see greater stability over 2021, with a broad economic recovery set to bouy market performance, we forecast modest declines in average sales prices and rents overall.

Read our full market report below, for an in-depth analysis of the residential property market in Dubai, Abu Dhabi and Northern Emirates in 2020, and an outlook for 2021.