UAE and MENA Home Sentiment Survey – Q2 2020 reveals region’s real estate sentiment post COVID- 19
Peninsula Real Estate published the results of UAE and MENA Home Sentiment Survey – Q2 2020. The survey was conducted in cooperation with Eltizam Asset Management Group, CBRE, Cityscape and Berkshire Hathaway Home Services in July, 2020. It provides an important snapshot of sentiment towards real estate in the context of relaxed COVID-19 mitigation measures. Home owners, renters and investors from across the region took part in the survey.
As to the end of Q2 2020, UAE residents express the following sentiments:
- In the UAE 59% of respondents expect that the value of their home will fall in the second half of 2020; 84% of respondents who are renting expect their rent to decline. On average, respondents in the UAE expect rents and house prices decrease by 8% in the remainder of the year.
- 75% of respondents who are renting in the UAE and had renegotiated their lease agreements in the last six months reported their rent had fallen. One third of them said, their rent had reduced by 10% or more.
- 70% of respondents who are renting in the UAE consider the rent they pay fair or good value for the property they lease.
This is the second home sentiment survey that Peninsula Real Estate carries out. The experts of the company are not surprised by poor sentiment towards real estate in the Gulf. The survey results reflect the negative sentiment caused by the current pandemic and its enormous impact on the global economy during the first half of 2020. It is expected, that the UAE government’s recent economic stimulus programs together with the re-opening of various economic sectors badly affected by the shut-down, will help improve the sentiment during the second half of the year.
The sentiment expressed by the UAE residents differ from that of other residents of the region. This is due to a number of factors, among which is the higher rate of expats in the UAE compared, for instance, to Egypt or Saudi Arabia. However, the impact of COVID-19 pandemic on the economy and expats’ incomes could negatively affect the demand for housing property.