JLL: Growth in Dubai from select minority of projects
JLL: Growth in Dubai from select minority of projects
Jones Lang LaSalle (JLL), the advisory firm, released its fourth quarter (Q4) 2012 Dubai Real Estate Overview report this week. It concludes that Dubai real estate is witnessing selective recovery, as optimism returned in the second half of 2012.
Craig Plumb, Head of Research at JLL in MENA, said:”2012 ended with a flurry of new project announcements as increased confidence returned towards real estate. While there has been a recovery in rents and prices in the residential, retail and hotel sectors during 2012, this improvement remains focused on a relatively small number of projects.”
Alan Robertson, CEO of JLL MENA, notes: “Unlike other sectors, the industrial market has been much less cyclical over recent years and continues to be dominated by long term commitments to single light industrial or logistics tenants.”
The report noted that the Dubai economy has seen signs of solid recovery. Gross Domestic Product is projected to grow by 4.5% in 2012, supported by the strong performance of tourism, commerce, retail, hospitality and logistics. Political stability, world class infrastructure and high quality of life, have contributed to this growth.
Despite the lack of transactions, investment sentiment in Dubai is improving. The optimistic outlook is reflected in Jones Lang LaSalle’s latest Investment Sentiment Survey, which shows investors from the region perceive Dubai as the preferred market.
