Leading real estate specialist, Cluttons, has predicted the real estate trends across residential and commercial sectors across the UAE in 2012. Their report states that the residential market in the UAE will continue to mature, And will see increased demand.
Cluttons has predicted a brisk start for the year 2012, with the trends in the residential market in the UAE likely to continue, with good quality and well-established developments being benefitted immensely due to their amenities and services. They are likely to do well at the expense of newer residential areas. Cluttons also anticipates that the residential market in the UAE will continue to gain from readily available mortgage finance options at competitive rates.
An improvement in demand is expected in the commercial sector too. However, the rents are likely to bottom out in the commercial sector, with minimal further reductions.
Cluttons expects an improvement in occupier demand in 2012 with several companies seeking to re-locate into the UAE. This trend could possibly be due to Arab Spring, and due to the perception of Dubai being a safe haven for business.
The general oversupply of office stock in the market place, coupled with availability of low rentals will continue to fuel occupier movement within the city. Several companies are going through rigid cost-saving and downsizing measures, with particular focus on reducing rents and vacant floor space, which is no longer needed, Cluttons said.
The oversupply of office stock will continue in 2012. Although there are indications about the bottoming out of rentals, further reductions may be minimal, it is said.