Cluttons anticipates additional maturing of UAE real estate market in 2012
According to a new report from real estate consultants Cluttons, we can expect the residential property markets in the United Arab Emirates to realise further maturing during 2012, with the quality and amenities driving demand.
Cluttons has experienced a steadfast presence as a real estate specialist in the Middle East since 1976 and states that there was an overall maturing of the marketplace in 2011 and predicts an abrupt start to 2012.
The report also forestalls improvements in the occupier demand within the commercial sector; rents are expected to bottom out in 2012 with further reductions being of a marginal nature. A continuation of these trends is expected in the residential market, with commendable quality and thriving established developments that are benefitting from the nearby services and amenities.
Cluttons also predict that with the cumulative availability of mortgage finance options at competitive rates the residential market is sure to advance.
In the commercial sector it anticipates an enhancement in occupier demand as 2012 has begun with growing volumes of companies looking to relocate into the UAE. This trend is unmistakably endorsed by the effects of the Arab Spring, pointing out Dubai’s stability and perception as a business ‘safe haven’.
The report adds ‘The general oversupply of office stock in the market place and low rents on offer will also continue to fuel occupier movement within the city. Many companies are still going through fairly rigid cost saving and downsizing exercises, noting that more focus has been put on reducing rents and vacant floor space that is no longer needed,’
‘Whilst a general oversupply of office stock will continue to be a feature of the market in 2012, there are signs that rents are beginning to bottom out and further reductions are hoped to be minimal. Rental incentives and flexibility offered by landlords is likely to continue to increase in order to reduce vacancy levels.
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