The "proactive" stimulus measures introduced by authorities in the UAE, including improved loan-to-value ratios for first-time homebuyers, will help enable property markets in the region to quickly recover from the current situation, Cavendish Maxwell says.

The property consultancy's Q1 2020 UAE Property Market Report has revealed the impact of the pandemic on major residential areas in Abu Dhabi, where there was a 13.2 per cent decline in apartment prices in from Q1 2019 to Q1 2020, while villa/townhouse prices registered a slightly lower decline of 9.5 per cent over the same period.

In Dubai, median apartment prices in Dubai declined 12 per cent over the 12-month period from Q1 2019 to Q1 2020 whilst villa/townhouse prices declined 4 per cent.

Cavendish Maxwell Associate Partner for Strategic Consulting and Research, Aditi Gouri, said while the market had taken an unexpected turn in the first part of the year, there had since been reason to believe some stability would be restored.

“Social distancing measures and restrictions have impacted economic activity and fluctuating crude oil prices also added uncertainty to the mix in March," she said.

"However, the proactive stimulus measures introduced by authorities, including improved loan-to-value ratios for first-time homebuyers, will help enhance our resilience and enable us to quickly recover from this situation.

"In terms of new supply, which has largely governed prices over the past quarters, fresh project deliveries may be impacted as construction companies, contractors and suppliers scale back activities as a precautionary measure against the further spread of COVID-19.

"Any signs of a slowdown in supply would bode well for prices.”

Click here to download the report.

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