Real Estate

Abu Dhabi package ‘to drive market’

September 2018

Although market conditions in Abu Dhabi remain relatively unchanged, a major announcement by Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces Sheikh Mohamed bin Zayed Al Nahyan in the second quarter introducing an economic stimulus package for Abu Dhabi is expected to drive economic growth, according to leading real estate expert JLL.

The stimulus package introduced in early June will drive initiatives that directly affect the real estate sector by reducing costs for developers, promoting partnerships between the public and private sectors, and also providing dual licences for companies located in free zones to bid for, and undertake government tenders outside the free zone, stated JLL in its latest Abu Dhabi Q2 real estate report.

“The economic stimulus package has positive implications for the capital with new initiatives directly impacting the real estate market and should lead to an upswing in investment,” remarks Peter Stebbings, the national director, and head of Abu Dhabi, JLL.

Stebbings says there has been an increased focus on promoting and implementing public-private partnerships across the region and within the UAE.

According to JLL, the residential rents and sales prices largely remained unchanged in the second quarter. However with the UAE’s decision to allow 10-year visas for expats and 100 per cent foreign ownership in companies outside of free zones will boost sentiment in the residential market, providing expats with more security over their rights to remain in the UAE.

On the office sector, JLL says the rents have fallen slightly during the quarter as consolidations continue to take place and other companies choose to downsize.  

More Stories