Saudi Ministry of Education to showcase innovations at 2025 Geneva International Exhibition    7,523 violators of residency, labor, and border security laws deported in a week    Video contradicts Israeli army account of deadly March 23 strike on Gaza paramedics    Saudi Arabia spends over $241 million to implement de-mining projects in 3 countries    Italy's Meloni government approves controversial security decree expanding police protections and penalties    Egypt submits new Gaza ceasefire and prisoner exchange proposal: Report    'Everything is possible' — Ronaldo focused on titles, not 1,000-goal milestone after Riyadh Derby win    Saudi, US military leaders discuss enhanced defense cooperation in Riyadh    King Salman Global Academy for Arabic Language launches program with Indiana University    Ronaldo brace powers Al Nassr past Al Hilal in Riyadh derby thriller    Ed Sheeran weaves Persian music into new song, Azizam    Al-Jadaan: Crown Prince's directives confirm government's ability to bring back balance to real estate market    Veteran Bollywood actor Manoj Kumar dies at 87    Foreign investors are allowed to engage in real estate business outside Makkah and Madinah Commercial speculation should not be the purpose of real estate transaction    Aubameyang fires Al Qadsiah into King's Cup final with stoppage-time winner over Al Raed    Musk's X is suing India, as Tesla and Starlink plan entry    Tesla sales plunge after backlash against Elon Musk    Danilo Pereira fires Al Ittihad into King's Cup final with dramatic stoppage-time double    Screen time in bed linked to insomnia, study finds    Mexico bans junk food in schools to fight childhood obesity epidemic    Sweet sales surge ahead of Eid as Saudi chocolate imports top 123 million kg in 2024    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    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.