UAE property witnesses 'growing confidence'

Tasweek report says market will be driven by consistency, transparency

NEWS, Business

The UAE’s real estate sector is enjoying a steady uptrend in the first few months of 2013 market characterized by more consistency and consolidation within the primary markets of Dubai and Abu Dhabi, according to Tasweek CEO Masood Al Awar.

The firm, which specialises in the development and marketing of property, is predicting a "sustained rebouund" in property prices in the region over the next few months, although Al Awar added that concerns over the affordability of housing and the ease of finance need to be addressed in order to sustain organic growth.

He added that in Abu Dhabi, where rents dropped between 5-12% last year due to the amount of new stock on the market, a resurgence was likely on prices due to several new initiatives.

These included the government's edict that housing expenses would only be paid to employees who live within the emirate, as well as the announcement of a $90bn stimulus to be spent on infrastructure projects and consolidation within the market sparked by the merger between Aldar and Sorouh.

"Consolidation is expected to extend beyond companies and towards government entities and projects as well," Tasweek said.

In Dubai, residential rents have risen by 7-10% over the past three months, with experts forecasting an increase in rents ranging from 10-17% across the emirate in 2013.

"Barring major construction delays, around 36,000 new apartments and villas could go online from 2013 to 2015. Amidst broad options, Dubai tenants are expected to go for localities offering quality units and amenities," Tasweek added.

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