Year of change for Dubai real estate: Deloitte

Dubai_real_estateAfter a challenging 2017, Dubai’s real estate sector is predicted to undergo a year of disruption in 2018 thanks to the introduction of VAT and the emergence of new technology, according to a report from Deloitte. The report, Middle East Real Estate Predictions, Dubai, covers the residential, hospitality, retail, office and industrial sectors and lists four factors that could impact investors in what has become an increasingly popular asset class in the region. The introduction of VAT “represents one of the biggest challenges for Dubai’s real estate market” states the report, citing that VAT on construction materials may create cash flow issues for developers. Dubai’s ambition to be a world leader in 3D printing means that it is aiming to have 25% of all new properties 3D printed by 2025. Potential real-estate investors will also have to show a track record of delivery to access an evolving development finance market in Dubai. The final factor mentioned by the report is Dubai’s growing connection to the real economy which will present commercial opportunities but also greater exposure to macro-economic risks like economic protectionism and geopolitical uncertainty. ©2018 funds global mena

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