New JLL report says Dubai government's regulations are expected to drive real estate market this year
Multiple commercial real estate projects have been resumed by developers in Dubai during the first few months of 2019 in a push to deliver them ahead of Expo 2020, according to a new report.
JLL’s Q1 Dubai Real Estate Market Overview report said the government’s introduction of regulations to stimulate demand is also expected to drive the market this year.
JLL said that with ample choices available for tenants, landlords continue to offer incentives in order to retain current occupants, adding that this trend is expected to continue over the next 12 months.
In the residential space, around 9,800 units were completed in the first quarter of 2019 which is the highest number of units handed over in a single quarter for the last few years, the report said.
It noted that a rising trend in the space is that of new technologies being introduced in response to the government’s call to switch to paperless transactions.
The retail market shares a similar trend, with mall owners investing in new technologies such as artificial intelligence (AI) and click and collect to maintain and increase footfall.
JLL said other mall developers are expected to follow in the footsteps of Majid Al Futtaim which recently partnered with pop star Will.I.AM's technology company to deploy an AI platform to engage customers and provide a digital and virtual experience for retail and entertainment.
Craig Plumb, head of research, JLL MENA, said: “The overall real estate market in Dubai is maturing and looking beyond just cyclical trends. Entities are increasingly looking at innovative ways in which to re-strategise their portfolios and assets in order to boost their businesses.
"The government is also actively introducing regulations, such as the one allowing 100 percent foreign ownership of companies in the UAE to stimulate demand. These developments are expected revive investor sentiment in the long-run.”
The JLL report also said Dubai's hotel sector is also expected to receive a boost from Dubai Tourism’s decision to release AED250 million of bank guarantees, which will allow local tourism companies to reinvest in their businesses.
This initiative is expected to help drive future growth towards the emirate’s new target of attracting 25 million overnight visitors by 2025, it added.