The Specialists observes country’s transformation into an end-user market, resilience of industrial segment

UAE’s property sector gaining momentum amidst steady market correction

The Specialists observes country’s transformation into an end-user market, resilience of industrial segment

May 17, 2009

Ongoing corrective measures have transformed the UAE’s property trade into an end-user market, observes The Specialists, a complete real estate solutions provider with over 20 years of experience in the Gulf region.

The Specialists notes that more real estate developers and owners are shifting their sales strategies away from speculators and towards end-users, focusing on meeting the unique needs of prospective owners. A noteworthy rise in foreign investments in recent months is further sustaining the momentum being enjoyed by the industry, with improved lending conditions across domestic banks adding to the positive trend. Another welcome development is the resilience of the industrial property segment, with Dubai alone still significantly benefitting from its reported 50 per cent increase in industrial rents in 2008.

“Just recently the UAE Minister of Economy stated that the country has managed to overcome the crucial stages of the financial crisis, and that significant economic gains could be expected in the second half of this year. This has greatly stimulated market-correcting activities which are raising the appeal of properties and moving emphasis towards end-users” said Dr. Sobhi Suleiman Agha, General Manager, The Specialists.

Meanwhile, banks across the Emirates are gradually increasing lending and mortgage activities, although they are exercising more caution in the form of rigorous background checks. Also, the UAE Central Bank and the Ministry of Finance have been implementing several measures to improve liquidity in the financial sector and restore market confidence. A senior official of the Central Bank has affirmed that they will concentrate on liquidity and asset quality towards 2010.

The banking authority will specifically monitor the effects of the property trade on the financial sector.

“Today’s evolving markets have actually opened several opportunities to foresighted property firms. The key is for developers and owners to keep close track of trends and corrections and create tailored packages for both their existing and prospective clients. The UAE remains one of the world’s top property destinations, so banks will definitely continue to extend mortgage facilities to investors, albeit with a little more caution. A little creativity and patience can still lead to highly-profitable returns for real estate businesses,” concluded Agha.

The Specialists itself constantly monitors local and regional trends to make sure that it develops and delivers high-quality and timely services. The Specialists delivers a comprehensive range of services to cover all types of property transactions within both the commercial and residential markets, for lease and for sale. The company currently conducts its operations in the UAE, Jordan, Lebanon and Syria.