JLL: Corona is behind the rise in Dubai townhouse prices

According to a report by (JLL), the global real estate consultancy and investment company, the selling prices of villas rose by 3.5% in Dubai, and by 2% in Abu Dhabi, during the first quarter of 2021, compared to the same period last year.

The report, which (Emirates Today) obtained a copy of, attributed this rise to the demand for work at home after the pandemic, as JLL noted that the strong demand for high-quality villas and townhouses was driven by end-users wishing to benefit from payment plans. Affordable, low prices, and space upgrade opportunities.

The company confirmed its expectations of adding 46 thousand new housing units in Dubai during this year, and the average sale prices of all units (villas and apartments) decreased by 5% for the year 2021 compared to 2020, in addition to a 10% decline in rents during the year 2021 compared to 2020.

With regard to Abu Dhabi, it is expected that 12 thousand housing units will be delivered during the current year 2021, with a tendency to stabilize sale prices, and a decrease in rents by 3.5% compared to 2021.

Office space market:

The JLL report stated that it remained divided into two categories with strong demand for high-quality, well-managed spaces.

The Dubai market witnessed the delivery of a total of 30,000 square meters, which were primarily concentrated in TECOM areas A and B, bringing the total stock to 8.9 million square meters.

The company expects that the total office space that will be delivered during the whole year 2021 will reach 120,000 square meters, with rental prices declining during this year by 2% compared to last year.

While Abu Dhabi did not witness the delivery of any new office projects during the last quarter, keeping the total stock stable at about 3.8 million square meters, 69 thousand square meters of office space is scheduled to be delivered in it by the end of 2021, with rental prices also declining during this year by 2 % Compared to last year.

Retail outlets sector:

JLL said that turnout and sales have declined due to the Corona pandemic and its restrictions, and despite this, the sector's performance continues to maintain its resilience in light of improved market conditions during the first quarter of 2021.

Some retail outlet sectors such as food and beverages have also adapted to these developments by providing digital solutions in addition to moving to locations closer to roads and residential communities.

At the same time, the performance of other sectors such as fashion, luxury and entertainment in shopping centers declined due to the change in consumer spending habits and the decline in tourism rates.

JLL expects to add 584,000 square meters of retail space in Dubai this year, and the average rental rates for stores and outlets in malls are expected to decline by 10% this year compared to last year.

In Abu Dhabi, the company expects to add 55,000 square meters of retail space during this year, with average rents declining by 7% compared to last year.

Hospitality sector:

The JLL report stated that the emirate of Dubai witnessed a very limited number of rooms entering the market, keeping the total inventory stable at 134,900 hotel rooms.

The company expects to deliver 16,000 rooms during 2021, and the average daily room price has decreased by 13% compared to last year, to reach $ 146 (535 dirhams).

Given that hotels were targeting residents within the country throughout the first quarter of the year, the level of hotel occupancy in the emirate of Dubai declined from the beginning of 2021 until February to 60% compared to 81% in the same period in 2020.

In the Emirate of Abu Dhabi, about 545 rooms have been delivered, bringing the total stock of hotel rooms to about 30,600 hotel rooms, as the company expects, in total, to deliver 1,400 rooms during this year.

While occupancy levels in Abu Dhabi reached 61% from the beginning of 2021 until February, the average daily room rates declined by 21% compared to last year, to reach $ 90 (about 330 dirhams).

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