(MENAFN) Property consultancy JLL has confirmed the UAE and Saudi Arabia's value-added tax (VAT) implementation to have a 'minimal' effect on real estate market.
"Fundamentally, we do not see VAT as being a market mover, with a significant impact really only on the retail sector as they take a hit on reduced consumer spending," JLL MENA's chief financial officer Andrew Hatherly explained.
He added "they will also have to absorb some of the 5 percent of VAT into their margins to avoid having to pass on too much of their costs to consumers."
JLL also noted that VAT impact on consumer price inflation is expected to be settled at about 2%.
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