Abu Dhabi’s real estate market is expected to witness significant growth as per several studies and reports. The Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, Sheikh Mohammad bin Zayed Al Nahyan, has confirmed a special economic stimulus package in order to spur economic growth in Abu Dhabi.
This stimulus package contains special initiatives that directly impact the realty sector by way of lowering overall developer costs, encouraging and promoting partnerships between private and public sector entities and also offering dual licenses for free zone companies to bid for and take on government tenders outside the free zone. The new package will boost Abu Dhabi and the real estate market alike since this will lead to a sharp rise in investments according to experts.
Real estate developers will eventually be able to lower costs and this will infuse positive sentiments into the entire real estate market. Additionally, the landmark decision to allow 10-year expat visas and 100% foreign ownership companies in companies outside free zones will encourage positive sentiments in the Indian residential market, enabling higher security for expats with regard to their rights to stay in the UAE.
Employment levels are also expected to recover from their present levels in Abu Dhabi, particularly in sectors like financial services. The introduction of VAT earlier in 2018 has also been a key move which has enabled retailers throughout the UAE to ensure higher value for buyers since the latter are now more conscious about prices of products. The hospitality market has seen an increase of 2% in occupancy levels in Abu Dhabi’s hotels. The growth in the hospitality sector is also forecasted and this will also boost sectors like real estate and infrastructure.
