A recent report by JLL reveals that the current global trend is to focus on increasing interest in online shopping, which benefits retailers better equipped to operate in e-commerce. The firm anticipates a shift in the global economic landscape and the real estate sector following the world's recovery from the coronavirus crisis, in anticipation of any future crises.
residential property stability
Dana Salbak, Senior Director of Research at JLL Middle East, confirmed in a television interview that the UAE real estate market saw stability in rental and sales prices for residential property at the end of the fourth quarter of last year, 2019, and continued to perform well until the first quarter of 2020.
Salbak noted that the current market supply, with 12,000 housing units delivered in the first quarter (representing 301,000 units of the planned 301,000 units), demonstrates effective monitoring and control of supply levels. She also mentioned hotel occupancy rates resulting from the oversupply.
Logistics sector recovery
The report predicted a recovery in the logistics sector and an increase in demand for storage space, as part of companies" strategy to meet modern market demands in light of the closure of borders of countries exporting basic materials.
The report anticipates a shift in the office real estate sector as the trend toward remote work increases and efficiency and productivity become more critical. In the long term, the report does not foresee any change in the fundamentals of real estate investment or a return to normal investment flows in the sector after a period of volatility.
Related topics: Real estate – Real estate regulations – International real estate – E-commerce
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