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Looking ahead to 2019

According to Knight Frank’s recent report on the UAE Market Review and Forecast for 2019, the UAE’s GDP is expected to grow by 2.8% in 2018, up from 0.8% registered in 2017.

“Outlook for the UAE’s GDP growth in 2018 and 2019 remains positive on the back of higher oil prices, a range of stimulus packages and easing of business regulations in both Abu Dhabi and Dubai, which are likely to support activity in both the public and private sectors,” reads the Knight Frank report.

Looking at the real estate sector. The report notes that residential prices and rents are likely to continue to soften in 2019, however additional demand may underpin the market as a result of the recent approval of a range of legislations to ease visa regulations, given that many of the changes are linked to property ownership

Taimur Khan, Research Manager at Knight Frank reveals what’s in store for the office sector and the hospitality sector.

“In the short to medium term we expect that market conditions in the UAE’s office sector will remain challenging with rental rates continuing to fall. In the UAE’s hospitality sector, we anticipate that the changing nature of room night demand and sustained development pipeline will result in RevPAR levels weakening over 2019,” he says.

“Whilst there are clear challenges facing the market, a trend we expect to continue in 2019, the recent approval of a range of legislations to ease visa and foreign business ownership by the UAE Cabinet are likely to drive addition demand in the UAE’s property market. Looking ahead we expect that the prime segments of the market are likely to continue to outperform the mainstream market overall,” he concludes.

Real estate consultancy, Asteco recently launched its report on the UAE. Looking at Abu Dhabi, Asteco revealed that approximately 6,200 residential units were delivered in the UAE’s capital in 2018, this includes 4,500 apartments and 1,700 villas – with half the supply concentrated on Abu Dhabi’s islands, including Al Reem and Yas Island.