Click here for the top 10 rankings in the regionOctober 8, 2015 6:09
Abu Dhabi the region’s real estate hotspot
The UAE capital is the Middle East’s most attractive property market, claims Jones Lang LaSalle’s Second Investor Sentiment Survey.
April 15, 2009 2:51 by Dana El Baltaji
Investors feel the real estate markets in the Middle East will outperform other regions over the next 12-24 months, claims Jones Lang LaSalle’s Second Investor Sentiment Survey, in association with Cityscape Intelligence, released on Wednesday. A majority of respondents, 26 percent, feel that Abu Dhabi is the region’s strongest market, followed by Saudi Arabia (25 percent), Qatar (19 percent) and Dubai (11 percent).
“With Abu Dhabi and Saudi Arabia suggested as the hot spots for investors in the coming years, the MENA region looks set to grow in significance even further,” Ian Ohan, head of MENA Investment Transactions at Jones Lang LaSalle in a statement. “As the signposts of recovery begin to emerge globally and regionally, experienced investors that understand the significant lead time to properly review and complete transactions are keen to not miss out on these value investment opportunities and are already pursuing deals.”
Furthermore, investors feel the UAE capital is well-geared toward long-term success and competitiveness in comparison to other GCC cities. However, Dubai, which is largely viewed as the region’s first city to promote its real estate sector heavily, was ranked second: “Dubai is the most developed real estate market in the GCC and has enjoyed first-mover advantage over recent years,” the report explains. “Its success in tapping into the global economy and the high level of current real estate development has however worked to Dubai’s disadvantage over the past six months.”
“With significant adjustments in capital and rental values in place, Dubai may prove often to be one of the most lucrative real estate investment opportunities in the region.”
The survey includes opinions of 200 high-net worth individuals, institutional investors, sovereign wealth funds and developers.
Jones Lang LaSalle’s survey contrasts a report published by Moody’s Investors Service titled Gulf Real Estate Market Industry Outlook in April that gave the region’s property sector a ‘negative outlook’ for the next 12-18. The rating agency based its analysis on falling demand, lack of credit, low consumer confidence and the possibly of an oversupply.
Why is it that two respected firms would release two conflicting reports on the same issue in less than a week?