The United Arab Emirates' real estate markets have been in
the news over the last year, and much of that news was negative. When the ball
dropped on the new year, it seemed like it brought a new vitality to Dubai and
the rest of the region's real estate industry. It's not all good news of
course, but there are initiatives that are believed to be good for Dubai accommodation and the region, and
harbingers of better times to come.
Dubai Property College has formally joined with the Arab
Administrative Development Organization (AADO) in a new initiative to spread
real estate sector professional education and training throughout the region.
Mahmoud El Burai, Director of the College and the Director for Real Estate
Development for RERA, the Real Estate Regulatory Agency, is quoted as saying:
"It puts in place the foundation not merely for harmonization of standards
and practices but also for the creation of a real estate bloc with huge appeal
and, significantly, credibility for investors from any part of the world. The
aim is to get the professional practice right by making sure the training is
available to a level which is aligned with best international practice."
CB Richard Ellis has issued a report showing that projects
put on hold in 2009 are being reactivated, with new contracts being awarded and
old projects moving to completion. With prices down already, it is expected
that this new inventory will bring them down even more. Landlords are using
staged rent and other incentives to attract tenants. Though prices and rents
are down, there is also new investment interest in the area. With prices Dubai property for sale in some areas
off more than 50% from their peak, institutional investors are entering the
picture, buying up in size and quality to increase their holdings.
One trend expected in coming year is more activity in
mergers and acquisitions. With more than 2000 brokers listed by the Real Estate
Regulatory Authority (RERA), it's a fragmented market that should result in
stronger and larger companies buying up the smaller entities. Along with
mergers and acquisitions, there is also the prediction that activities will
begin to shift from development to more project management and restructuring.
All considered, the Dubai properties appears to be in a position to see a return of some of the
excitement of the past in real estate development.
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