The easing of visa and foreign business ownership by the UAE Cabinet is a bright spot in an otherwise challenging year ahead for the UAE, according to Knight Frank.

The global real estate firm's UAE Market Review and Forecast 2019 predicts a further softening of residential prices and rents for the coming year, but also additional demand brought on by recently-approved changes in legislation.

Knight Frank Research Manager Taimur Khan said easing of visas and foreign business ownership could give the property market a boost.

“Whilst there are clear challenges facing the market, a trend we expect to continue in 2019, the recent approval of a range of legislations to ease visa and foreign business ownership by the UAE Cabinet are likely to drive addition demand in the UAE’s property market," he said.

"Looking ahead we expect that the prime segments of the market are likely to continue to outperform the mainstream market overall."

The news is not so good for other sectors, with Abu Dhabi's incoming retail supply expected to put existing retailers and operators under "intense pressure". 

The report also forecasts that market conditions in the UAE’s office sector will remain challenging in the short to medium term as rental rates continue to fall. 

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