The commercial property sector in Dubai is picking up, with increased occupier interest, owing to various cost savings now available in what is considered to be a buyers’ market.
Leading real estate services company, Cluttons, in its review of property activity in Dubai last year, mentioned that high-end residential sector seems to be benefitting from the current capital shifts in the region, due to Arab Spring.
The year 2011 seems to end on a positive note for Dubai property market, than during the past three years, despite the negativity arising from the current economic turmoil in Europe and US, the report said.
Although the prices have continued to fall in certain places, the rate of decrease seems to have slowed down throughout the year, indicating that they are close to bottoming out. A general maturing of the marketplace has been noticed in 2011, with demand now originating from variables that one would expect in any established city, Cluttons point out.
The landlords are also getting more flexible in their terms which seem to be another feature of a maturing property market, it said.
Further, a major announcement that came over the past 12 months, that of three-year residency visas to owners holding Dh.1mn or more worth of properties in all freehold areas, lured investors back to the market, Cluttons said.
The Head of Cluttons, UAE, Steven Morgan, said that it seems encouraging to note the stabilization seen in certain areas of the UAE residential and commercial real estate market.
Cluttons has expanded its team so that their combined skills and expertise can help the company in retaining the international best practices and professionalism, while also continuing to adapt the ever-evolving Middle Eastern marketplace.