According to an estimation presented by CBRE Menat, UAE residential market is projected to see a spike in scheduled residential supply market after the Expo 2020, which will be benefitting from the improved infrastructure, particularly in the region of the Metro expansion.
2019 is anticipated to be a year of opportunities by the consultancy for UAE’s real estate sector. There will be a reduction of year-on-year transaction amounts across both the villas and apartments this year. CBRE forecast suggests that the developers around the country will persist to propose exceedingly attractive payment plans and incentives, which will ultimately lead to a growth of first-time buyers or owner-occupiers.
The top five sites for upcoming supply comprises of Dubai South, Dubailand, Dubai Creek Harbor, Mohammed bin Rashid City, and Jumeirah Village Circle/Triangle. CBRE adds that the reasonable ticket prices will go on to be one of the main strategies for developers as they aspire to augment absorption rates.
In the meantime, specialists at JLL refer to the rising opportunities in the region of bendable office space, sale and leaseback; alternative real estate assets and real estate investment trusts (Reits), consisting of logistics and the warehouse’s industry.
The conditions begin to soften in 2018 in the UAE’s real estate sector. However, the prospects are contingent upon how quickly the regulatory adjustments enacted the previous year start to produce further demand for 2019. Although the market situation is expected to stay challenging, occupiers and investors still have the opportunity to pioneer new strategies to improve their performance as said by Craig Plumb, head of research, JLL, Mena.
Furthermore, technology is anticipated to play a vital influence and role across all sectors of the UAE’s real estate market this year, particularly because the new solutions have the perspective to drive more efficient methods for foreseeing the market, buying transactions and organizing assets, articulated by specialists at JLL.
There are numerous fundamental variables that will determine the venture opportunities in Dubai’s real estate market in 2019 consisting of the quick rise of flexible office space in Dubai, with an expansion set to persist at a swift pace in years further on due to high demand from both landlords and tenants. The notion of flexible office spaces is popular given the focus of occupiers on ways of working and driving cost efficiencies.
In the past year, Dubai’s trade sector was challenged given an increase in excess supply and the growth of e-commerce. The upcoming performance of the segment will be contingent upon the integration of pioneering amusement and food service concepts to initiate spending.
Likewise, the demand for expert facilities such as warehouses has also increased. This is an indication that the coming year will present more prospects in free zones housing industrial distribution centers. There are numerous other components are likely to persist in 2019 comprising of more rebranding announcements and continual development in supply in the midscale/upscale sector of the market.