2009 has been a nightmare for real estate

Mohammed Nimer of MAG has labelled 2009 an 'annus horribilis' for real estate.

“Personally I believe 2010 will be a year of further consolidation before buyers in significant numbers – particularly from abroad – will be tempted back into the market. We also have to remember that we are currently still living with an oversupply in the market and that will have to work its way through.

“A refreshing change, however, is the way that the business slump which hit us in 2009 is now openly discussed. The UAE was late into the global recession because of an oil price boom supporting the economy when the price of a barrel hit $147 in mid 2008 which led some to believe we were somehow immune.

“Everyone in business will continue to experience challenging times, gradually easing throughout 2010. The market, as it consolidates, will benefit from more traditional and sustained business approaches as opposed to the speculative models that took over in 2007 and 2008 and met their inevitable end in 2009.

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“Our own industry example is the welcome return of the traditional business model of marketing completed or near completed new properties which now generate more sales than the speculative off-plan project model.

“Recognising the extent of a problem is the first stage in solving it and as we work through the coming year and transparency increases. As confidence is regained, the underlying foundations of the excellent business economics of the UAE remain in place for a return to a prosperous and sustainable future by the latter end of 2010 and forward into 2011.”