Report: Middle East and UAE Real Estate Report 2020 released
At a glance: Post-Covid real estate trends
• Respondents are optimistic about the residential real estate market, and the majority believe that monthly rental contracts will become more common post-Covid-19.
• Covid-19 has posed an enormous challenge to office space, but responses show signs of splitting opinions around the growth and decline of the commercial office market.
• 41.81% of all respondents believe the industrial sector will be an important asset class for generating foreign direct investment (FDI), especially in the UAE.
• With global lockdowns reshaping consumer behaviour, the retail market has taken a large hit during the pandemic, but 91% of respondents believe that the traditional retail market will still remain vital – even with the continuous growth of online retail.
• 44% of respondents believe that the hospitality sector will have the most impact on generating FDI, and 47% of people believe that the hospitality market will recover in the next 1-2 years.
The impact of Covid-19 on residential real estate
• The majority of respondents believe that monthly rental contracts will become more common post-Covid.
• Buyers of residential real estate will look to spend less money.
The impact of Covid-19 on commercial real estate
• High-tech infrastructure, mixed-use complexes and a flexible approach to work environments and rent are among the factors that will ensure commercial real estate growth.
• Likewise, space for social distancing, internet speed and reduced unit size will be crucial to recovery.
The impact of Covid-19 on industrial real estate
• Warehousing and data centers are predicted to be key real estate assets for the MENA region.
• Dubai and Abu Dhabi are anticipated to see the highest levels of industrial real estate growth over the next 12 months.
The impact of Covid-19 on retail
• PropTech is expected to be a factor of retail recovery.
• Only 9% of respondents believe that brick and mortar retail real estate will no longer be vital post-Covid.
The impact of Covid-19 on hospitality
• 91.6% of respondents agree that Covid-19 has forever changed the hospitality sector and companies need to rethink strategies in order to be competitive.
• Serviced apartments are the biggest predicted growth sector in hospitality.