JLL said during the first quarter of 2021, villa sale prices increased by 3.5 percent and 2 percent in Dubai and Abu Dhabi respectively
Newly announced regulatory measures, local availability of the vaccine and the upcoming Expo 2020 are all opportunities to revive the UAE’s real estate market during 2021, according to consultants JLL.
Its latest UAE Real Estate Market Performance report said the signs of recovery are already underway, adding that a big emphasis of the year will be re-envisioning spaces as tenant and end-users find community amenities more appealing.
JLL said during the first quarter of 2021, villa sale prices increased by 3.5 percent and 2 percent in Dubai and Abu Dhabi respectively, when compared to the same period last year.
As work from home has become a central aspect of post-pandemic life, JLL observed that strong demand for good quality villas and townhouses have been driven by end-users capitalising on favourable payment plans, lower prices and opportunities to upgrade space.
Dana Salbak (pictured below), head of research at JLL MENA, said: “As roles of different properties are shifting, property managers will need to offer residents an optimal way of living and working with a blended and multi-purposed dynamic.
“The successes and failures of the multi-purpose concepts will provide an opportunity and insight into how the modern day tenant has evolved, allowing the future of real estate to take a step forward in creating properties that are adaptable to an individuals’ needs.”
During Q1, JLL said the UAE office market remained two-tiered with demand for well-managed, single owned, quality space being sought after.
Dubai’s office market saw a total of 30,000 sq m of gross leasable area (GLA) delivered, primarily in Tecom A&B, increasing the total stock to 8.9 million sq m. In Abu Dhabi, no new office deliveries kept the total stock stable at approximately 3.8 million sq m, with future supply of 69,000 sq m scheduled for delivery by the end of 2021.
JLL added that Covid-19 has “irreversibly changed” the way the retail industry operates. With the closure of various retail projects and movement restrictions implemented across the country, footfall and sales have witnessed a drop.
However, the sector remained resilient with market conditions improving during the first quarter of 2021, according to the JLL report.
Some retail segments such as F&B, have adapted through digital solutions as well as relocating to more street and community locations, it noted.
Meanwhile, other segments such as fashion, luxury and entertainment within established malls lagged in performance due to change in consumer spending habits and subdued tourism, JLL added.
“There are several ways in which retail destinations can be adapted to drive consumers back while still adhering to social distancing measures, with several approaches already underway,” said Salbak.
“As the sector prepares for a prosperous future following its pandemic recovery, we will see more innovation and culture brought to the forefront as retailers relocate to more street and community locations.”
Within the hospitality sector, Dubai saw a very limited number of keys being added to the market, maintaining the total stock at 134,900 keys.
Source: Arabian Business
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