Friday, November 07, 2008

Leasing activity to grow in Dubai

Leasing activity in Dubai will catch pace, as the sellers try to focus on demand patterns that signal the change to an end-user driven buyers' market, commented an industry expert.

The real estate market in Dubai is resilient and will withstand the current economic crisis, without facing any over-supply problems, said Cliff Kelaita, Chairman of Landmark Properties.

The current supply-demand situation would increase the number of sellers coming forward to lease to end-users. Likewise, we anticipate that end-users would purchase units and lease them to generate more income against mortgages. Hence, the lenders are likely to further stimulate the leasing market by launching new 'buy-to-let' products that suits requirement of end-users, Cliff said.

According to analysts from Landmark Advisory, the research and consultancy division of Landmark Properties, despite the huge growth in 2008, property prices in Dubai are still below the levels of comparable markets in cities such as London, New York or Hong Kong.

Hence, even if few projects gets delayed, or restructured, due to developers trying to cope with the current challenges, the market would still continue to remain strong and grow, Cliff assured.

As per the report by Landmark, the current liquidity concerns in the short-to-medium-term horizon would be a function of governmental action.

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