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Dubai real estate market steers toward maturity - LRE - 02-18-2010 11:51 PM
Jones Lang LaSalle predicts properties are moving away from off-plan sales models to those based on secure cash flow
By Aya Lowe, Staff Reporter
Published: 00:00 February 16, 2010
Dubai: The property market is steering towards maturity and more regulations in the course of 2010, Jones Lang LaSalle (JLL), global real estate brokerage said Monday.
A press conference held by JLL outlined the predicted trends that are set to define the realty market in 2010.
"The year 2009 was the end of a transformation decade. A lot has changed significantly followed by what has happened locally and globally, In 2010, the UAE real estate market is moving away from the off-plan sales model towards a longer term model based on secure cash flows," Blair Hagkull, managing director of JLL Mena said.
Under the title of ‘Top 10 for 2010' the trends included a shift of attention from building to maintaining assets, a restoration of trust and confidence in the market and a refocusing of real estate financing.
"Creating an atmosphere of trust is essential for markets to maintain a competitive edge in challenging economic times.
Evolving
"The need to rebuild confidence and greater transparency is no longer optional but a necessity in the region's fast evolving real estate markets," Craig Plumb, head of research at Jones Lang LaSalle Mena said.
The conference agreed that the market is set to become more favourable to the tenant with better rates and there would be a shift in focus on middle to lower income housing over high end housing.
The disappearance of the speculative buyer means that investors are now looking more into buying completed properties rather than off-plan.
"What we are seeing is a shift in the last five years where the supply has been dominated by the investors and now is a market [which is] not investment driven but end user driven.
"That's not just characteristic of the residential market but of the retail and commercial market as well. Before, all the residential supply that was planned to be built by 2012, 60 per cent was high end which was only targeting 16 per cent of the demand," Plumb said.
Financially, 2010 will see much more local investment as investors increasingly look to invest in the region and an increased emphasis on equity and need for co-investment vehicles.
http://gulfnews.com/business/property/dubai-real-estate-market-steers-toward-maturity-1.583756