UAE government launches key initiatives to bolster the real estate market

The real estate market has always been an important asset class and market in the Middle East due to its purpose and the amount of projects surrounding it. However, the economic situation remained subdued in 2018, with Gross Domestic Product (GDP) growth at roughly 2 per cent in 2018. This is a slight increase from 2017, stated JLL in its 2018 Year in Review report.

In this report, the leading professional services firm that specialises in real estate and investment management discusses the real estate market in the UAE, including the market performance across residential, office, retail and hotel sectors, as well as initiatives by the local government to spur the real estate market back to former glory.

According to the report, the commercial office sector showed the strongest performance in 2018, which could be accorded to low new supply in the market. While the retail sector faced most challenges with increased supply in the market.

Overall residential market softened as there was a huge influx of new supply — a record highest number in the last five years with 22,000 new units.

The latest initiatives by the UAE government that strengthened the sector include the 10-year long-term residency visas and the 5-year retiree visa.

Moreover, 2019 is expected to see the country's GDP grow at three per cent owing to the expansionary fiscal stance and investments ahead of Expo 2020.

The report provides a breakdown of each sector mentioned above, including trends in the market that have been identified, as well as key outlooks and initiatives moving forward into 2019. Discover the latest reports by JLL here.