The UAE property market steps into 2020 following a period of "prolonged softness", Cavendish Maxwell says.

The property consultancy has released its 2019 UAE Property Market Report, revealing average apartment prices declined by 15 per cent over the 12-month period from Q4 2018 to Q4 2019 and villa/townhouse prices were lower by 18 per cent.

The report notes that while supply remains the primary driver for price declines, some locations have started to show signs of stabilisation and even recovery.

Softening prices spurred an increased number of property transactions in 2019, with November marking one of the strongest months in the past decade.

Off-plan transfers continued to dominate in Q4 2019, accounting for more than 60 per cent of total transfers. The total number of transfers in this period was 12,444 for both villas/townhouses and apartments.

In Abu Dhabi, the residential market performed slightly better with average apartment sales prices declining in major investment zones by 13 per cent and villas by an even lower 11 per cent between Q4 2018 and Q4 2019.

Market conditions in the Northern Emirates remained largely like the previous quarters, with few areas displaying signs of stabilisation. 

Cavendish Maxwell Property Monitor Chief Operating Officer Zhann Jochinke said many buyers who were potentially on the fence regarding property purchase decisions had decided to enter the market.

"Whilst this is a strong indicator of hitting a floor in terms of prices, other indicators such as high vacancy rates and the expected upcoming supply are yet to show signs that support stabilisation," he said.

"Looking ahead, the Expo 2020 in Dubai is going to be a key indicator of where we stand in terms of demand and supply.”     

Scheduled for October, Expo 2020 will be the first event of its kind in the region, with 190 participating countries, and millions of visitors from across the globe expected to make the trip for the event

Cavendish Maxwell believes the expo, along with numerous landmark policy changes in 2019, including the ‘Golden Card’ long term residency visa and the opening of Abu Dhabi’s residential market to freehold investors, are likely to have a significant positive impact on the economy for years to come.

Click here to download the report.

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