Transport and infrastructure improvements will play a key part in the growth of the United Arab Emirates’ (UAE) commercial property market this year, one expert believes.
Masood Al Alwar, CEO of Abu Dhabi-based real estate firm Tasweek, says that Dubai’s growing reputation as a major hotspot for global realty investment will help sustain the momentum experienced by the regional market towards the end of 2013.
According to khaleejtimes.com, sale and lease prices in the UAE rose, on average, by around 15 per cent in the first three months of 2014, despite precious forecasts suggesting this rate would be considerably higher. During the final quarter of last year, increases of 35 and even 40 per cent were reported.
In its market report, Taswell said that the slight lull can be put down to a surge in the creation of new units, with the upcoming World Expo 2020 also playing a part. Mr Al Alwar, however, remains positive.
He was quoted by zawya.com as saying: “The UAE real estate sector has witnessed significant growth in the first quarter, particularly in Dubai and Abu Dhabi. This is in terms of asset prices, transaction volume and capital availability for refinancing, rescheduling and repayments.
“We have to note that international investor sentiments have improved globally with better returns compared to risk element.”
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