Construction

Experts address UAE residential value drop

UAE real estate experts discussed an estimated 10 – 20 % drop in residential real estate values in the region expected in the coming months. During a recent discussion at the Cityscape Connect Business Breakfast, a panel comprising of Abraaj Capital, Greenstone Equity Partners, Ericsson and Microsoft Corporation stressed how vital transparency is within the […]

UAE real estate experts discussed an estimated 10 – 20 % drop in residential real estate values in the region expected in the coming months.

During a recent discussion at the Cityscape Connect Business Breakfast, a panel comprising of Abraaj Capital, Greenstone Equity Partners, Ericsson and Microsoft Corporation stressed how vital transparency is within the “essential” real estate sector, to move the industry forward in a more mature marketplace.

Allon van den Bergh, director real estate RMEA Ericsson spoke from an end user perspective, using the Dubai market as an example to highlight the mistakes that can easily be made by developers.

“Buildings were built to make Dubai look great on the outside.  However, the quality of the product was quite average.  As a tenant, I want a quality landlord that has a real interest in their building,” he said.

The discussion which will continue at the Cityscape Global Real Estate Seminars to be held in September at Dubai World Trade Centre, also addressed sustainability and the need for building owners to take responsibility for their unit’s carbon footprint.

Reniér André Saayman, area portfolio manager Middle East and Africa at Microsoft Corporation pointed out the importance of the real estate relationship in the long term.

“If the landlord is willing to walk that path with you, the building becomes more attractive in the long term.”

In 2010 the demand for office space reached 4.2m sqm, estimated at more than three million more than residential demand.

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