Deloitte Real Estate Predictions 2019: Change that responds to challenges has been saved
Deloitte Real Estate Predictions 2019: Change that responds to challenges
5 February 2019 - Deloitte Financial Advisory launched the fifth annual Middle East Real Estate Predictions, Dubai, which examines the performance of Dubai’s real estate market in 2018 and forecasts the changes in the hospitality, residential, office, retail and industrial and logistics markets in 2019.
Oliver Morgan, Development Director in Deloitte’s Real Estate team in the Middle East said, “We are in a challenging market that is seeing a significant growth in supply, while macroeconomic headwinds are increasing. Dubai is a resilient market that drives growth through innovation and is expected to be well positioned looking forward to future market cycles.”
Dubai’s hospitality market will see continued growth in tourist arrivals, with a change in visitor preferences to more affordable offerings, as key source markets continue to face economic uncertainty. Midscale hotels are expected to exert pricing pressure on other segments as they seek to provide a quality experience at value for money. Despite economic and market challenges in 2018 compared to previous years, Dubai remains one of the most competitive hotel markets in the world.
The residential market has experienced significant pressure owing to an increase in supply and reduced purchasing power from key source markets. Longer-term prospects should be viewed beyond 2019 as the population continues to grow and household sizes get smaller.
Dubai’s office market will see a fundamental shift in patterns of occupation with anticipated changes to ownership regulations. Companies will have a larger variety of options as they are not restricted to specific areas. Once this comes into effect, it is expected to prompt certain relocations as larger corporate occupiers seek to consolidate and optimise their operations. The introduction of these new regulations, in addition to new quality accommodation options, may see a two-tier office market in 2019.
Digital disrupters are changing the retail landscape. The increased supply of retail units, popularity of e-commerce and declining disposable incomes continue to put pressure on the retail sector. Retailers that offer experienced focused shopping through an omni-channel platform are increasingly in pole position to attract customers. Data and technology provide the retailers with a better understanding of consumers, the ability to respond to preferences in real time, as well as offer greater convenience and access to product information.
Continued growth in UAE imports and exports have driven demand for industrial and logistics. A strong infrastructure pipeline, improving business sentiment, the expansion of e-commerce and preparations for the EXPO 2020 will spur further investment in the logistics sector.
About the Middle East Real Estate Predictions report, Dubai 2019
A Deloitte initiative that was produced by undertaking in depth market research, extensive consultations with industry stakeholders and analysis of data from sources that include the Economist Intelligence Unit (EIU), MasterCard, Oxford Economics, Reidin and STR Global. The research comprised an assessment of the trend performance and future prospects for Dubai’s hospitality, residential, retail, office and industrial markets.
To discuss the report in more detail please contact Oliver Morgan.
To view the full report click here
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About Deloitte & Touche (M.E.):
Deloitte & Touche (M.E.) (DME) is a licensed member firm of Deloitte Touche Tohmatsu Limited (DTTL) and is a leading professional services firm established in the Middle East region with uninterrupted presence since 1926. DME’s presence in the Middle East region is established through its affiliated independent legal entities which are licensed to operate and to provide services under the applicable laws and regulations of the relevant country. DME’s affiliates and related entities cannot oblige each other and/or DME, and when providing services, each affiliate and related entity engages directly and independently with its own clients and shall only be liable for its own acts or omissions and not those of any other affiliate.
DME provides audit and assurance, tax, consulting, financial advisory and risk advisory services through 25 offices in 14 countries with more than 3,300 partners, directors and staff. It has also received numerous awards in the last few years which include, Middle East Best Continuity and Resilience provider (2016), World Tax Awards (2017), Best Advisory and Consultancy Firm (2016), the Middle East Training & Development Excellence Award by the Institute of Chartered Accountants in England and Wales (ICAEW), as well as the best CSR integrated organization.
The information contained in this press release is correct at the time of going to press.