UAE PROPERTY UPDATES Q3, 2020: TENANT-FRIENDLY RESIDENTIAL SECTOR AND SEGME
Highlights in Real Estate
The housing market favors tenants.
Incentives are also being offered by developers to consumers and investors.
Seeing a steady turnaround in the hotel industry.
Retailers opt for deals with landlords based on sales share.
The 3rd quarter of the year remained tenant-friendly, according to UAE real estate experts. The industry experienced a big blow for the uninitiated because of the global pandemic. A V-shaped recovery had, however, begun towards the end of the property updates. There has been a significant increase in construction activity now that the debilitating effects of COVID-19 have decreased. Projects that have been delayed because of the novel corona virus are now being resumed. As a result of this rise, in Q3 2020, 600 units were handed over in Abu Dhabi and 12,000 in Dubai.
The trend continues to remain in favor of renters, despite the market getting back to its usual self, as rental properties in the UAE are available at reasonably competitive rates.
There are also restructuring deals in the retail sectors in Abu Dhabi and Dubai. Projects are already signed on revenue share-based contracts, according to the most recent property updates. The rationale for why retailers prefer agreements on these models is that it allows them to reduce the risk of their capital expenditure. There has been a slight recovery with the reopening of malls in the Developers in UAE, as sales have increased a little, especially when compared to the 2nd quarter. The primary concentration of buyers, however, is on essential products. Recreational goods still don't get as much coverage as they used to get in pre-COVID days. This is partly due to the reduced buying power and potential uncertainty as corona virus cases are on the increase again. Therefore, retailers are limiting agreements with their landlords in order to survive in the fast-changing market.
Other than that, the number of units has also increased in the office sector in Dubai. It was the first time new changes were made to the office stock in the year 2020. With a total area of 190,000 sq., Office Gross Leasable Area (GLA) m. In prominent residential communities in Dubai, MBR City, DIFC and Downtown Dubai, it was delivered. The overall stock of GLA has reached 8.9 sq. with this new addition. M.
Experts also think that in their designs, property developers are also keen on raising health and wellness standards. In addition, they are also adding the sustainability aspect. This is expected to raise construction standards in the area, particularly for new entrants to the market. Improved real estate principles would be the end consequence. Newly launched initiatives with enhanced principles of sustainability and design will help people looking to purchase off-plan properties in the area gain further exposure.
Despite things almost getting back to normal, according to property experts in the UAE, it will still take some time for real estate prices to be at the same levels as they were before COVID-19. Developers, too, will continue to offer various benefits to draw customers and investors, such as discounts, fee waivers, rent-to-own systems, and etc.Rents are also anticipated to stay on the lower side, as mentioned above. For anyone wanting to buy a property in the UAE, this makes for a lucrative opportunity. Also, in different societies, those who want to get a property for rent in Dubai and other emirates will find ample choices.
The hotel industry ranked among the major industries that suffered most during the lockdown and travel restrictions are also included in Dubai Developers. However, there has been a notable activity in this sector now that travel restrictions have been relaxed and big tourist destinations have been reopened. In particular, private villas and waterfront properties like Stella Maris are getting more attention in Dubai Marina. Having said that, it is to be noted that domestic tourists are driving most of the sales in this market.