Tuesday, January 20, 2009

Landlords need to realize tenant requirements for quick recovery from crisis

It is essential for the landlords to understand the requirements of tenants, for the real estate sector in Dubai to bounce back, industry analysts reveal.

Markets are more flexible back in UK, and they bounce back much faster from economic turmoil than in mechanical markets, says Nicholas Maclean, MD of CB Richard Ellis. This is because in transparent markets such as the UK, landlords are quick to act and reduce rentals to meet market demands. Such a decision is vital for the recovery process.

In the UAE, if the landlords understand the requirement of tenants, the market would recover faster than in any other markets around the world, opinioned Maclean.

The fundaments in real estate market of Dubai are still positive, and there is 100 percent occupancy, particularly in the commercial sector, unlike in Europe or other parts of the world, he pointed out.

In the meanwhile, the fourth-quarter report by CB Richard Ellis indicates that rentals in Dubai are leveling off in residential, commercial and retail sectors.

Rents are likely to soften to decline, but, in the rental index released last week by RERA, this will help in bringing about transparency in Dubai’s real estate sector.

Rentals in three commercial sectors, including retail, industrial buildings and offices remained stable in the fourth quarter of last year, the report said.

1 comment:

sunil said...

2 major flaws in this post

1) the fundamentals are no where near good. what fundamentals are we talking about here? some details would help.

2) lowering rents do not fix economic crisis. growing home ownership does and stable employment. the root cause must be fixed. rents are simply an effect of the macro environment.