Post-pandemic plans for concrete recovery Prospects for the Dubai real estate and hospitality sectors July 2020 FOREWORD The Covid-19 pandemic is proving Based on KPMG’s experience in the real estate and hospitality sectors, and conversations with an enormous challenge for our stakeholders, we have analyzed the current societies and healthcare systems; the situation. As a product of our research, this consequences for the global document seeks to offer insight into the challenges faced within the residential, office and local economies are both and mall segments of the real estate market, unprecedented and unpredictable. as well as the hospitality industry. Many economists are convinced we are heading We would like to thank those who provided for a significant economic downturn and remain invaluable insight, while rising to the challenges unsure as to how long a recovery will take. we are all currently experiencing. However, responses from governments and regulatory bodies have been prompt. In the Please feel free to contact us with UAE, at the federal and emirate levels, a variety any comments or queries. of measures have been taken to support the economy and its citizens. Sidharth Mehta Partner Head of Building, Construction and Real Estate KPMG Lower Gulf Limited E
[email protected] CONTENTS Residential Page 06 Office space Page 09 Hospitality sector Conclusions Executive summary Regional outlook Real estate sector Page 14 Page 01 Page 02 Page 05 Page 18 Shopping malls Page 11 About KPMG Page 20 Real estate and hospitality services Page 20 References Page 21 — A significant reduction in personal and — How deeply the sector is affected will largely business travel is impacting the sector with depend on travel restrictions and traveler HIGHER occupancy and revenue per available room sentiment.