Duran leads Al Nassr past Yokohama Marinos into AFC Champions League Elite semi-finals    Al Ahli cruise past Buriram into AFC Champions League Elite semi-finals    Saudi Arabia offers condolences to Iran following deadly Bandar Abbas port explosion    Saudi Arabia welcomes Palestinian leadership reforms, appointment of Hussein Al-Sheikh    Ministry of Hajj issued over 150,000 Nusuk cards for the Hajj of 2025    Saudi Arabia deports 12,866 illegal residents in a week    Pope Francis laid to rest at historic funeral in Rome    Massive explosion at Iran's Shahid Rajaee Port injures over 500 people    SFDA clears first 44-ton medical shipment for Hajj pilgrims    Over 13 million worshipers pray at Rawdah Sharif in a year    Saudi orchestra to perform at Sydney Opera House in May    Al Hilal thrash Gwangju to reach AFC Champions League Elite semi-finals    Nammos Amala Resort to open soon with Saudi-Greek designs    Saudi Arabia completes 674 Vision 2030 initiatives, achieves 93% of KPIs as ninth-year milestone marked    GACA chief chairs 16th meeting of the Steering Committee on aviation's strategy    Alkhorayef praises advancements in Al-Kharj food industries sector    Saudi Theater Commission launches its Work and Learn Project in UK    The season has begun — and one comment shook us all    Average life expectancy in Saudi Arabia rises to78.8 years    Famed Philippine film star Nora Aunor dies at 71    Pakistani star's Bollywood return excites fans and riles far right    Veteran Bollywood actor Manoj Kumar dies at 87    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



UAE's real estate seen stabilizing in next 12 months
Published in The Saudi Gazette on 15 - 07 - 2019

While most sectors across UAE's real estate market remained challenged during the first half of 2019, the various government initiatives launched recently are expected to boost sentiment and drive demand over the coming months. In the year ahead, market performance will heavily depend on how quickly these initiatives have an impact, outlines JLL's Q2 2019 UAE Market report.
The general economic environment has also shown a slight uplift, with UAE GDP growing by 2.2% in the first quarter of 2019, supported by a robust government, according to the Central Bank of UAE.
In Q2, the UAE government announced a number of initiatives, with the aim of driving economic diversification and stimulating weakened market demand. The long-awaited freehold law was finally enacted in Abu Dhabi, allowing foreigners to own land and property within the emirate's investment areas on a freehold basis for the first time. The new law aims to encourage foreign investment and provide investors with more certainty. Meanwhile, Dubai saw the launch of a new initiative for permanent residency called ‘Golden Card', which aims to provide permanent residency for investors and exceptional workers in the fields of health, engineering, science and art.
"Overall market sentiment should improve in the long run with the announcement of stimuli such as the new visa regulations. While the benefits of these initiatives are not likely to have an immediate impact, we do expect some sectors of the real estate industry to pick up in the run up to 2020," said Dana Salbak, Research Associate at JLL MENA.
"While the residential sector in, both, Abu Dhabi and Dubai witnessed subdued performance overall, new initiatives to drive expat home ownership will likely boost demand. The office sector, too, will witness potential upside from these new initiatives launched to stimulate the economy," she continued.
In Q2, Abu Dhabi's office sector continued to face downward pressure with further declines in rentals for both Grade A and Grade B space. However, there is some demand for smaller sized units as global corporates are focusing on occupancy metrics to enhance employee productivity by eliminating wasted space. In addition to that, the government's announcement of Hub71, as part of its economic stimulus package, to support technology start-ups, is also expected to boost the sector.
In Dubai the office market continued to soften, but there remains a demand for co-working space. While this sector currently accounts for less than 1% of all office space in Dubai, it is expected to grow rapidly over the coming years.
The UAE's retail sector remains the most challenged due to ongoing increased supply and low consumer spending. In response, mall owners are investing in new technologies to find ways to increase retail sales and footfall. In recognition of the growth of e-commerce, the announcement of digitally-enabled malls like Dubai's ‘Mall.Global' are expected to drive the market in the months ahead.
Abu Dhabi's hotel sector was the standout performer in Q2, recording a 12% increase in ADR's in the year to May, in comparison to the same period last year. UAE government's initiatives such as the exemption on visa fees for children, free sim cards for tourists on arrival, as well as a strong calendar of events, are expected to positively impact the tourism sector overall. — SG


Clic here to read the story from its source.