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Mazaya Monthly Real Estate Report -
Week 4 - May 2016
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The state of correction reported in the
UAE real estate market has evidently
proven the authenticity of the reports
and indicators, which expected the
market to undergo a state of gradual
decline in pricing. This carries several
positive aspects for investors, the real
estate market and the local economy,
given that investments have increased
in terms of quality and feasibility.
In this context, Al Mazaya Holding's
Weekly Real Estate Report points
out that the UAE real estate market
has succeeded in evading predicted
real estate bubbles ever since the
global financial crisis. From 2012 up
to the end of 2014, the UAE has also
succeeded in avoiding a collapse in
prices, despite the recession of the
past couple of years. Due to steady
demand indicators from the end user,
in addition to an improvement in the
attractiveness of real estate products
and prices – across all categories – the
UAE has witnessed a consistent level
of demand, at healthy supply rates.
An improvement in the investor's
ability to determine the best investment
opportunities at the right levels of
risk, return and market resilience,
means the UAE market remains an
attraction proposition – both locally
and externally. These factors have
been collectively reflected in the
country’s
economic
performance
and continuation of development
projects, in spite of the prevailing
financial and economic pressures
at the regional and global level.
UAE
By tracking the region's markets, it has
become noticeable that the UAE real estate
market now enjoys high flexibility towards
the supply and demand cycles. The Emirati
market has become capable of reflecting
the demand indicators on the offered real
estate products in a more efficient way
than neighbouring countries, in spite of
some challenges still being in place. The
key challenges are the price reduction
indicators, which are often associated
with economic and financial pressures
that affect the pace of economic activity
as a whole. Therefore, a decline in demand
rates in terms of sales and leasings
means more risks and fluctuations for
both direct and indirect investment.