Due to Dubai’s status as the Middle East’s business hub, the real estate market has boomed in recent years. Before the epidemic, the demand for luxury and affordable houses and villas was at an all-time high in the region. Due to Covid-19 in 2020, there will be a significant disruption in the market, and the recovery will be lengthy.
During this year, market share is predicted to decline a few notches, but it is expected to increase in the following years progressively. In response to the constraints on mobility and capacity, owners & occupants had to make the necessary adaptations. Dubai’s residential and commercial real estate market will undergo structural changes in 2021. Every sector has the same top priorities: finance, cash management, and lender concerns.
The Real Estate Market Outlook for 2021
For prime assets with minimal impending supply, occupancy levels will be maintained by giving competitive rates and incentives individually.
In response to the pandemic last year, the Dubai government issued various stimulus measures for the business, and there will be incentives this year as well. The Central Bank’s TESS (Targeted Economic Support Scheme) will be extended this year for the benefit. As a result, the private sector and people impacted by the epidemic can access the Dh50 billion zero-cost facility, allowing them to do
The tenants are in control
Dubai will continue to have a high demand for office space due to its popularity as a business location. Office space consumption has been disrupted by the pandemic’s remote working style, first during the 24-hour limits in April, and since then with a return to work rules across the organization’s departments and divisions.
A significant number of people are moving into large apartments with top-notch amenities, which means that tenants have the upper hand when it comes to The cost of housing is quite affordable. The capital values have remained low as a result of the pandemic’s impact on investment.
As more people work from home in 2021, the demand for office space is expected to decrease due to the adoption of offices. In the short term, the focus will be on making the most of what’s available, and cash preservation will remain top Long-term office adaptations are likely to raise the demand for space.
While there is still optimism for a recovery in 2021 and 2022 for the real estate market, there is still hope for compensating. The demand for office or residential space in Dubai is projected to increase as we return to our daily lifestyles.