Economic stimulus package to reduce costs for real estate developers, promote public-private partnerships,& provide dual licenses for companies located in free zones says JLL
The Abu Dhabi government’s announcement to introduce an economic stimulus package for the capital is expected to drive economic growth, boost sentiment among key stakeholders, and have a direct impact on Abu Dhabi’s real estate sector – according to real estate consultant JLL.
While market conditions remain relatively unchanged, the stimulus package introduced in early June of this year will drive initiatives that directly affect the real estate sector by reducing costs for developers, promoting partnerships between public and private sectors, and providing dual licenses for companies located in free zones to bid for, and undertake government tenders outside the free zone, notes JLL.
“The new government economic stimulus package has positive implications for the capital with new initiatives directly impacting the real estate market and as with previous government stimuli should lead to an upswing in investment,” said Peter Stebbings, National Director, and Head of Abu Dhabi, JLL.
“There has been an increased focus on promoting and implementing public-private partnerships across the region and within the UAE in particular. With the stimulus package being introduced in Abu Dhabi, real estate developers will be able to reduce costs, paving the way for positive sentiment across the market,” he added.
JLL maintains that while residential rents and sales prices largely remained unchanged in Q2, the UAE's decision to allow 10-year visas for expats and 100% foreign ownership in companies outside of free zones will boost sentiment in the residential market, providing expats with more security over their rights to remain in the UAE.
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