Despite Interest, UAE Property Sales Stuck in Neutral
The National (UAE) reports: According to international property consultancy Jones Lang LaSalle (JLL), interest among commercial property investors in markets of the United Arab Emirates is rising again, after several years of heightened uncertainty kept activity subdued. To illustrate the severity of the contraction in UAE activity, the National cited data aggregated by Real Capital Analytics: ‘In 2008 when the market was still booming, there were 680 property sales in the UAE… Last year, there were 67 sales, of which 63 were for developable land sites, not buildings.”
“Investors are ready and willing to buy property in the UAE...There is cash available and investor interest but transactions are not happening,” stated Jesse Downs, director of JLL's Middle East hub. The reason for this continued stagnation, says JLL, is the “shortage of investment-grade stock offered to the market at realistic prices.” In other words, sellers’ and buyers’ pricing expectations remain out of sync after several years of turbulent market conditions. Making this disparity all the more remarkable, JLL estimates that the UAE office vacancy rate will surpass 45% in 2011.
View the full article on The National (UAE): Despite Interest, UAE Property Sales Stuck in Neutral
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