Cityscape Intelligence looks at the key highlights from the report:
- During 2020, the leasing sector benefited from the implementation of direct debit and credit checks, while the Sales market profited from reduced LTV (loan-to-value) ratios and lower interest rates for expatriates and Emiratis alike.
- The Government of Dubai has earmarked a total budget of AED 57.1 billion for 2021 and although reduced from 2020 (AED 66.4 billion), it takes into account the unprecedented economic circumstances and consequences of the pandemic.
- In Abu Dhabi, approximately 15,000 residential units are anticipated for completion in 2021. The majority of the upcoming supply is located within the following investment zones: Reem Island comprising approximately 1,850 units, Al Raha Beach with 4,000 units, Yas Island with 2,400 units, and Saadiyat Island with 800 units.
- Similar to 2020, Al Ain will see a limited amount of new supply in 2021.
- In Dubai, 41,500 new residential units and 1.5 million sq. ft. of office space are expected for handover in 2021, a figure that could possibly increase if currently stalled/on-hold projects resume activity.
- With more supply expected for handover in 2021, tenant retention will become increasingly important and can be achieved through competitive rates/incentives and proactive/professional property management.
- In light of the pandemic, the Emirate of Sharjah rolled out a number of stimulus measures to support the economy, most notably a reduction in property sales fees from 4% to 2%, for non-GCC nationals until the end of March 2021.
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