New reports on the Abu Dhabi and UAE real estate market have cited a swathe of developers introducing more attractive payment plans in light of current market conditions.
Research heavyweights JLL and Cluttons have both reported that 2018 will likely witness a new wave of attractive off-plan pricing deals as developers work harder for investment.
Many of the UAE’s prominent real estate developers, particularly those based in Abu Dhabi, are gearing up to create and unveil new pricing strategies for investors. Carlo Schembri, Exhibition Manager for Cityscape Abu Dhabi said, “With the current market conditions highlighted in the JLL and Cluttons’ reports, such as the sustained drop in demand and the knock-on effect of VAT for property owners, we’ll expect to see developers being more competitive with the introduction of a wave of new attractive plans.
Additionally, a number of Dubai developers will be making their first appearance at the three-day exhibition set to capitalise on the opportunities the capital presents as an emerging market and international hub for decision makers in the industry.
Both reports note a decrease in prices for Abu Dhabi, with Cluttons stating a 4.1% decline in house prices from the previous 12 months, and a further predicted decrease in rents ranging between 5-7%, which has incentivised developers to craft new ways of attracting investors.
Added Schembri, “With the price of oil still recovering, and as we reach the market’s phase of bottoming out, developers have adapted to bring on new investors without sacrificing the status of purchasing property in Abu Dhabi.
“Many developers continue to target the middle-income housing segment and have shifted their developments to attract this audience. With reduced unit size and construction costs, and a large appeal to investors, it has been a winning formula.”
While the current conditions described in the reports suggests a future decline in prices and rents, it does suggest that additional future gains for investors with foresight could be made for those purchasing now.
“In fact, now more than ever, the current state of the real estate market provides prospects for savvy investors. As we see the market mature in the UAE and Abu Dhabi, long-term investment will become a more common occurrence and those who can recognise market conditions and react accordingly will be able to capitalise,” said Schembri.