Dubai-Mubasher: The UAE's real estate sector remained largely stable as developers adjusted to declining oil prices, reduced government spending and slow economic growth by reducing levels of new supply, according to an annual report released by real estate investment and advisory firm JLL.
The report added that 8,000 residential units were completed across Dubai and Abu Dhabi last year, less than half the number completed in 2014, due to subdued market conditions and tightened liquidity, a trend likely to continue into 2016.
"Following a rapid increase of residential rents and prices between 2012 and 2014, the market has now clearly stabilised, with sales prices falling in Dubai and remaining stable in Abu Dhabi during 2015 - but with a significant decline in transaction volumes in both markets,” said Craig Plumb, the head of research at JLL (Middle East and North Africa).
The growth in retail sales has slowed in the UAE during 2015 with some retailers struggling to meet high rental rates, Plumb said, adding that further rental growth is likely to be limited to turnover provisions rather than base rental increases in most malls during 2016.
Throughout 2015, the UAE’s hospitality sector saw mixed performance.
