Monday, April 20, 2009

Dubai realty sector opens up productive investment opportunities

The correction in the property prices in Dubai will open up several productive investment opportunities in the sector within the next 24 months, revealed a report by Jones LangLa Salle, the real estate advisory firm.

The recent Investor Sentiment Survey carried out by the company reveal that with considerable adjustments already made in the capital and rental values already in place, during the next two years, Dubai will surely be one of the most attractive real estate investment markets in the region.

The property and construction sector in Dubai is undergoing a correction, with several large scale projects either on hold or scrapped altogether, and the prices are easing. However, developers in Dubai are considering this period as an opportunity to re-assess developments and re-focus on end-user elements, such as increased flexibility in payment plans.

The price adjustment will help Dubai immensely, as investors are attracted towards fairer values and better yields. Early signs of activity are already visible, the Survey indicates.

The government too has offered financial assistance by issuing $10bn bond. This is believed to help real estate firms immensely, and this will help in driving up investor sentiments, in a major segment of Dubai's economy. Further, the government has also pledged to continue with infrastructure spending to complete all major projects.

From a regional perspective, the Jones Lang LaSalle report points towards optimism among investors, over the prospects of Middle East Real Estate Sector, a major driver of the market.

1 comment:

K M Furqan said...

"The recent Investor Sentiment Survey carried out by the company" When and where did this company do this survey? In Dubai Investors' Group which has more than 650 member, not a single one is feel his investm,ent secured in this market, particularly after the amendment to Article 11 of Law 13 which favours only developers. Furqan