Abu Dhabi forecast to add 28,000 more homes by 2023
Government initiatives are set to stimulate Abu Dhabi’s real estate market this year, according to a new report by global consultancy CBRE.
The report shows that 28,000 residential units will enter the UAE capital’s market between 2020 and 2023, adding to the existing 258,000 units.
It added that changes in the freehold law that have enabled expatriates to own freehold property in over 15 designated investment zones, is expected to have a positive impact on the residential market.
It noted that Abu Dhabi’s hospitality sector is set to add an extra 9,300 keys within the next three years, adding that growth in hotel occupancy can also be attributed to a number of government measures last year, including a reduction in tourism, municipal and municipality hotel room fees.
Office demand is also expected to be supported by government initiatives to create jobs and increase economic activity, CBRE said. At the end of 2019, the existing office supply stood at 4.3 million sq m gross leasable area (GLA) with an expected delivery of an additional 0.6 million sq m GLA by 2023.
Ghadan 21, a three-year economic stimulus package of $13.6 billion will also be in place to create additional jobs, advancing the market performance of the office sector, it added.