The implementation of new policies and the relaxation of regulatory restrictions in line with the Vision 2021 goal of further diversifying the Dubai economy will provide a boost to the real estate market in 2019, says JLL's latest report, Dubai Real Estate Market Overview Q3 2018.

The report highlights that earlier this year, UAE approved a new investment law that could allow 100% foreign ownership of companies in specific sectors of the economy to operate outside of free zones by the end of 2018. JLL says that once implemented, the law will boost Foreign Direct Investment (FDI) and increase demand from overseas businesses, particularly for projects outside of the existing Free Zones.

According to the report, residential stock is estimated at approximately 513,000 units at the end of Q3 2018. The majority of completions during the third quarter were apartments (95%) with the largest completions including Burj Vista (640 units) in Downtown, and Damac Heights (640 units) in Dubai Marina. A further 23,000 units are currently under construction and scheduled for delivery by the end of the year. Major expected completions include Al Khail Heights, Hayat townhouses in Townsquare and apartment buildings on Bluewater Island.
JLL's report shows past and predicted supple of residential real estate in Dubai. Image credit: JLL.

The report also reflects on the recent Cityscape Global, held at the beginning of October. Using Cityscape as a barometer of sentiment towards the Dubai real estate market, this year’s event saw very few new launches; most developers focused on the sale of existing inventories by offering increasingly generous payment terms. 

Reflecting on this year, JLL says that the residential market has continued to soften with single-digit declines in both sale prices and rents during Q3 2018, despite recent government measures to inject confidence in the market, such as the introduction of the 10-year residency visas for certain categories of older expats. The lack of new project launches at Cityscape reflects the subdued investor sentiment and prices are likely to decline further over the next 12 months, says JLL.

To view the full report, go to the JLL MENA website.

For more information about the Dubai Real Estate Market Overview Q3 2018 report, email Craig Plumb of JLL MENA via the contact details below. ​

See also:

Dubai real estate market update: 2018 so far

Dubai Rental Disputes Centre launches rental good conduct certificates

Sharjah-based Arada breaks record at Cityscape Global 2018