Experts address UAE real estate decline
Real estate experts discuss bringing investors and occupiers closer to capture value in Dubai’s corporate real estate
UAE real estate experts discussed an estimated 10 – 20 % drop in residential real estate values in the region expected in the upcoming 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 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 & 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 terml,” Saayman said.
In 2010 the demand for office space reached 4.2m sqm, estimated at more than three million more than residential demand.
