Economic reforms to boost Abu Dhabi real estate market
Economic reforms along with the possibility of the introduction of a property-linked permanent residency could boost the real estate sector in the UAE and Abu Dhabi, said organisers of the International Real Estate Investment Show (IREIS) that opened in Abu Dhabi two days ago (November 1).
Inaugurated by Khalifa Al Mansouri, under-secretary of the Department of Economic Development Abu Dhabi, Antoine Georges, managing director of event organiser Dome Exhibitions, and Humaid Matar Al Dhaheri, group chief executive officer of Abu Dhabi National Exhibition Centre, the 10th edition of IREIS runs until November 3 at the Abu Dhabi National Exhibition Centre (Adnec).
“The UAE government’s economic reforms and the new investment programme, including the Dh50 billion ($13.6 billion) stimulus package announced by Abu Dhabi Government is expected to help boost economic growth and job creation will also help the real estate sector,” said Georges.
“Due to the government’s investment programme and the reforms, we expect the real estate market to bounce back sooner than expected.”
More than 100 companies – including property developers, investment advisors, immigration advisors and government entities – are showcasing local, regional and international properties at the three-day exhibition and conference that includes the first Abu Dhabi Investment Conference through a partnership with Abu Dhabi Investment Office, Citizenship by Investment exhibition and conference all under one roof – at Adnec.
Approximately 4,000 new residential units are currently scheduled to enter the market by the end of 2018, mainly within Reem Island, Yas Island, and Al Raha Beach, which might put downward pressure on the real estate prices and rents – which will help tenants to buy properties and become homeowners.
“The UAE’s decision to allow 10-year visas for expats and 100 per cent foreign ownership in companies located outside of free zones is expected to provide a positive stimulus to the economy over the medium term. Long-term visa security should increase the investor pool and extend the market cycle with longer term hold periods,” Jones Lang LaSalle (JLL), a global real estate advisory, said in its latest report.
“However, we expect a proportion of this supply could be delayed at the final stages of approvals and handover.”
Developers are offering more incentives to attract investors and elevate confidence in the residential market. Aldar announced the launch of The Cedars, a new community in Yas Acres, with service charges being waived for five years, a two per cent municipality fee, and a new 20/80 payment plan with 20 per cent of the purchase price payable during construction and 80 per cent upon handover, reports show.
Abu Dhabi Government’s economic diversification plan that is in line with the Vision 2030 will also help stimulate demand for more housing.
Sam Bayat, CEO of Bayat Legal Services, said, “The UAE Government is planning to introduce permanent residency to foreigners, linking to property ownership, and if it happens, we will see the real estate market rebound. I believe, this might happen sooner than many people’s expectation.
“Many countries are offering citizenship by investment in properties and a lot of UAE residents are investing elsewhere to seek permanent residency. This is a rational thing to do and the current set of reforms, such as granting 10-year visa to foreign investors is a step towards that direction.”
More than 200 senior officials and investment experts from public and private sectors will gather and brainstorm the future path of UAE’s knowledge-based economy at the Abu Dhabi Investment Conference. Business leaders, senior public officials, heads of international institutions and academia representing major stakeholders of the international investment community will take part in various sessions.
Abu Dhabi Investment Office (ADIO), a strategic partnership of Abu Dhabi Investment Conference, will highlight the key economic growth areas and the potential investment opportunities for foreign investors and financial institutions that will help boost the FDI (foreign direct investment) inflow into the emirate of Abu Dhabi, which consists of a number of cities including Abu Dhabi city, Al Ain, Ruwais, Madinat Zayed, Mirfa and many other towns in the Western Region, known as Gharbia – the largest base of oil and gas production.
IREIS that runs concurrently with the Abu Dhabi Investment Conference will see brisk sales and networking activities as sales of properties are permitted. IREIS brings leading local and foreign real estate developers, investors and agents under one roof will attract investors from various parts of the world.
The show is expecting over 100 high-end exhibitors and more than 8,000 visitors. To give a greater value to the exhibitors and visitors, the associated events that will complement the main IREIS Abu Dhabi 2018 are ‘International Real Estate Conference’, ‘Citizenship & Residency Expo’ and the ‘Real Estate Developer - Agent Meet’.
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