Mubasher: The real estate sector in Abu Dhabi is expected to be backed by the economic stimulus package that was announced earlier in 2018, according to a new report from consultants JLL.
This $13.6 billion (AED 50 billion) package will help the sector by reducing costs for developers and promoting partnerships between the public and private sectors, the report added.
JLL said that the Abu Dhabi plan, which was announced by Crown Prince of Abu Dhabi Sheikh Mohamed in June, includes ten economic initiatives planned to cover infrastructure and legislative projects and SMEs, in addition to industrial and social projects in the real estate sector.
“The new government economic stimulus package has positive implications for the capital with new initiatives directly impacting the real estate market and as with previous government stimuli should lead to an upswing in investment,” JLL’s national director and head of Abu Dhabi Peter Stebbings, said.
He added, “With the stimulus package being introduced in Abu Dhabi, real estate developers will be able to reduce costs, paving the way for positive sentiment across the market.”
JLL report showed that residential rents and sales prices remained largely unchanged in Abu Dhabi during the second quarter of 2018.
It also found that the UAE’s recent decision to allow 10-year visas for expats and 100% foreign ownership in companies outside of free zones will enhance sentiment in the residential market by giving expats more security over their rights to remain in the country.
