UAE property sector all set for revival during Q4 of 2009- Real estate report
A revival of sort is expected in UAE during the fourth quarter of 2009 but it hinges largely on banking sector opening for business, a new report indicated. Semblance of vitality is seen with real estate agents indicating a higher level of "walk around demand" and mortgage financiers highlighting an increase in finance enquiries.
Chet Riley, Equity Research, Middle East, Nomura International, said in a report on the UAE real estate:"These are encouraging signs, but the real estate agents are 'talking their book' and the financiers are 'protecting' theirs. Generally speaking, we think it takes around eight months from the 'tyre kicking' stage to the conversion stage, so we may see some stabilisation in the secondary markets soon, with perhaps some very modest improvement in the final quarter."
Capital values and rental values appear to be falling at the same rate across the residential and commercial property sectors, making yield analysis more difficult. In an efficient and traditional market, the capital value is generally a function of the rental value.
