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Thursday, November 26 - 2009

Lower quality units to be hit hardest as new era emerges in the UAE's property market

  • United Arab Emirates: Sunday, February 01 - 2009 at 17:30
  • PRESS RELEASE

A new era in the UAE's property market is emerging from the world economic crisis according to Landmark Advisory's first quarterly market report of 2009.

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The region's real estate sector will shift to a demand-driven market where need and customer preferences, rather than greed from frenzied speculators, will determine market prices.

"As the overall price declines continue across most real estate assets in 2009, developers that deliver on the quality they promised will be rewarded, while lower quality units will bear the brunt of falling prices. As the price discovery process unfolds, we expect sale prices to fall on average by 20% for apartments and 35% for offices. Villa prices, however, are likely to remain fairly stable."


explained Daniel Seleanu, Research Analyst.

The report also reveals solid prospects in the warehouse segment, which is undersupplied and has a strong price support due to its practically untapped leasing potential.

Stagnating income levels in Dubai, caused by a slowing economy, mean that increased liquidity and widely available lending will be the key factors determining how and when the region's property market will begin to recover.

"Maintenance fees are commonly overlooked in the rental market, and because they hurt rental yields, landlords have been attempting to pass off ever larger portions of this cost onto tenants," added Seleanu. "Until RERA's new, owner-oriented strata law is fully implemented, buyers must be sure to ask about all past, present, and planned monthly fees. These charges are likely to fluctuate in the year ahead."
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Notes and media contacts

About Landmark Advisory
Landmark Advisory was originally established in September 2006 under the name of Landmark Consulting Associates, with a mission to provide superior generalist advisory services in the areas of development and planning. In April 2008, Landmark Advisory was established and has brought with it the experience and network of Landmark Consulting Associate's years of existence.

Jointly owned by a dynamic group of partners, Landmark Advisory's founding members are the same group of professionals that founded Landmark Properties L.L.C, one of Dubai's leading real estate brokerage. Landmark Advisory's link into Landmark Properties, offers the group a unique position to closely study the real estate market, providing unparalleled access and perspective of the rapidly changing and expanding MENA market.

Our network of professionals dedicate themselves to thoroughly collecting and analyzing information to illustrate opportunities that exist in this fast-paced industry. Furthermore, our specialized knowledge and experience within the MENA region, gives Landmark Advisory the confidence to accurately advise our clients around the world in making well-informed and intelligent real estate decisions.

For further information, kindly contact:
Julia Finn or Ibrahim Asran
The Portsmouth Group
Tel: +971-4-369 3575

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