- Following a recent surge in coronavirus infections across the United Arab Emirates, Dubai has tightened social restrictions, limiting capacity at hotels, shopping centres and restaurants.
DUBAI: Dubai's property market will take at least one to two years to recover from the COVID-19 pandemic, DAMAC Properties' chairman said on Sunday as the developer reported a widening annual loss.
The real estate sector, where for years supply has outpaced demand for new houses and apartments, has come under added pressure from the pandemic.
DAMAC, owner of the Middle East's only Trump-branded golf course, located in Dubai, made a net loss of 1.04 billion dirham ($283 million) in 2020, much deeper than the 37 million dirham loss a year earlier as sales shrank.
Sales contracted 26% to 2.3 billion dirham, DAMAC said in a statement. Revenue, which includes past sales recognised in the annual reporting period, grew 6.2% to 4.67 billion dirham.
"With COVID-19 still prevailing across the world, tourism has dramatically fallen, which has been a critical force that drives Dubai's economy and boosts its property market," said chairman Hussain Sajwani.
It will take at least 12 to 24 months to see a "substantial recovery", he said.
Dubai reopened its borders to overseas tourists in July.
Following a recent surge in coronavirus infections across the United Arab Emirates, Dubai has tightened social restrictions, limiting capacity at hotels, shopping centres and restaurants.
Its borders remain open, though overseas visitors must obtain a negative COVID-19 test before arriving.