New strategies to underpin growth of UAE property market in 2019

Among the tactics increasing in popularity are investment in under-exploited asset classes such as industrial; sale-and-leaseback deals through which owners sell off real estate then occupy it on a rental basis to free up capital; establishment of real estate investment trusts (Reits), and flexible office working by enterprises.

“While market conditions are likely to remain challenging in 2019, investors and occupiers have the opportunity to introduce new strategies to enhance their performance.

Evolving technology offers landlords opportunities to cut costs by better targeting investors and identifying inefficiencies. “New ‘prop-tech [property technology] solutions have the potential to drive smarter and more efficient means for predicting the market, purchasing transactions and managing assets.

Meanwhile, digitisation of real estate assets – for example, equipping them with technology to measure energy consumption and occupancy levels – will be increasingly seen as an “essential building block” in the creation of smart buildings and smart cities.

The UAE has witnessed a real estate market decline in the past four years on the back of lower oil prices, which have crimped consumer purchasing power and driven a fight for affordability across the Emirates.

Residential sales and rental prices have fallen, but developers are bringing new, lower cost products to market to meet demand.

At the same time, UAE real estate companies are seeking to consolidate to rebuild their profits as renewed economic growth buoys investor sentiment and re-energises the market. Government initiatives such as Abu Dhabi’s Dh50 billion economic stimulus, set to be rolled out this year, as well as new visa rules to encourage expatriates to stay longer and invest in the Emirates, are set to boost the real estate market.

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