JLL’s recently released report said that recent activity in Dubai’s real estate market suggests that confidence has returned to both investors and developers. Although the number of new launches are below their peak levels in 2006/2007, a total of 25,600 off plan properties were sold in Dubai in 2017- the most off plan sales in Dubai since 2008.

The report says that the majority of sales in the residential sector of 2017 were concentrated in the off-plan sector, where developers offered, and continue to offer, particularly attractive prices and payment plans.

Image credit: JLL's 2017 Year in Review report for UAE

Outside of the off-plan market, JLL noted that the UAE’s real estate sector continued to adjust to lower growth being the “new normal”.
The report notes that overall conditions are expected to remain subdued in 2018, adding that the start of 2018 could see a reduction in activity and performance due to uncertainties around the impact of VAT.

“The UAE real estate industry is entering into a transitional phase, with VAT now in effect and key stakeholders seeking to decipher its immediate and longer term impact. Although VAT does not apply to residential rents and sales of new residential property, other real estate sectors could be negatively impacted by increased costs and cash flow challenges," said Craig Plumb, head of research at JLL MENA.

To see the full report, click here.

For more information, contact Craig Plumb, Head of Research at JLL MENA.

See also:

JLL names Dubai as a Rising Giant of growth, and Riyadh and Jeddah as Emerging Hotspots

Canvas by KOA leads Dubai’s real estate industry into a new era of cultural and urban enrichment

Wrapping up 2017, and what to expect in 2018 in Dubai’s real estate market