UAE - Mubasher: The UAE’s real estate sector has demonstrated resilience in facing the coronavirus (COVID-19) economic repercussions, according to Asteco, the property management company acquired by Aldar Estates in early 2021.

In Q4 2020 UAE Real Estate Report, Asteco referred that the UAE witnessed a contraction in the sales prices and rental rates in 2020, mainly attributed to the pre-existing supply-demand imbalance in the previous years.

At the end of 2020, villa sales prices and rental rates have risen for certain developments.

Meanwhile, the supply-demand imbalance is expected to worsen in 2021, similar to last year.

In 2021, around 15,000 residential units are expected to be completed in Abu Dhabi during 2021, while 41,500 new residential units and 1.5 million square feet of office space in Dubai would be handed over.

The CEO at Asteco, HP Aengaar, said: "While the downward trajectory in the real estate market for the short term is unavoidable due to strained economic and market conditions, the medium and long term outlook for the UAE is more encouraging, fuelled by recovering oil prices, forecasted GDP growth, a proactive government response and a clear focus on economic progress and sustainability."