Segments of UAE property market set for growth in 2018
As the UAE government pioneers fiscal adjustment in the region in response to declining oil prices, milestones such as Expo 2020 and the introduction of VAT will play a key role in boosting the country’s property market, according The Property Report - United Arab Emirates 2017.
Cluttons’ 5th annual UAE Property Market report asserts that an increase in the rate of economic expansion is expected in 2018 and 2019, underpinned by higher spending levels. For the country’s real estate markets, this is expected to translate into widespread stability and marginal growth in some segments by the end of 2018.
Faisal Durrani, head of research at Cluttons said: “We see a number of positive indicators for the UAE’s property market as we head towards the fourth quarter of 2017. While Expo 2020 is well documented as the shining light on the horizon, we view the government’s plan to introduce a formal tax regime as a tremendously positive step and are confident that it will help cement much-needed alternative revenue streams. Once the market absorbs the changes caused by the introduction of VAT, we expect to see a resumption in growth.”
While the market continues to recover, the report also highlights how each emirate is performing in the aftermath of the oil price drop, which is the single biggest factor that has impacted the market in recent years.