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A recovery in the real estate market in the UAE due to attractive payment plans

UAE - January 30, 2019

The consultancy expects 2019 to be a year of great opportunities for the sector of the real estate market in the UAE. There will be a softening of year-on-year transaction volumes across both apartments and villas in 2019. However, developers will continue to offer highly attractive payment plans and incentives, potentially leading to a rise in the number of first-time buyers or owner-occupiers.

The top five locations for future supply include Dubailand, Mohammed bin Rashid City, Dubai Creek Harbor, Jumeirah Village Circle/Triangle and Dubai South. Attractive ticket prices will continue to be a key strategy for developers as they aim to increase absorption rates.

Meanwhile, experts at JLL cite the increasing opportunities in the areas of flexible office space, sale and leaseback, real estate investment trusts (REITs) and alternative real estate assets, including warehouses and the logistics industry.

Technology will continue to be a key influence across all sectors of the real estate market in UAE in 2019, as new solutions have the potential to drive smarter and more efficient means for predicting the market, purchasing transactions and managing assets, say experts at JLL.

The core factors shaping investment opportunities in Dubai’s real estate market in 2019 include the rapid rise of flexible office space in Dubai, with growth set to continue at a rapid pace in years ahead owing to strong demand from both tenants and landlords. The concept of flexible office spaces remains popular as occupiers focus on new ways of working and driving cost efficiencies.

There is also a simultaneous surge in demand for more specialist facilities, including warehouses. The year ahead will create more opportunities and facilities in free zones housing industrial distribution centres.

2018 also saw a surge in hotel sales in the UAE and this trend is expected to continue into 2019 as operators seek to move to a more ‘asset-light’ model. Other features in 2019 are likely to include more rebranding announcements and continued growth in supply in the midscale/upscale sector of the market.

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