Strong demand amongst regional investors for Dubai real estate has led to the creation of a sellers market in the MENA region, according to a Jones Lang LaSalle survey that measured real estate sentiments.
Regionally, close to half of the respondents identified themselves as exclusive buyers, while only nine per cent declared themselves exclusive sellers. A large number of investors surveyed said that they were intending to both buy and sell, indicating a continuing trend of portfolio rebalancing.
The survey also found that regional investors, predominantly those in Qatar and the UAE, were looking to purchase real estate assets internationally.
Most investors continued to prefer income-producing assets to those that required development despite a revival of interest for land in this year’s survey.
Dubai, followed by London, were the most preferred markets for regional investors, the survey found. A trend towards larger ticket transactions was also noted in the survey.
“We have witnessed an increase in appetite for larger transactions as compared to last year, which indicates to the return of confidence in the sector and market,” said Gaurav Shivpuri, head of MENA capital markets at Jones Lang LaSalle.
The survey also found that the importance of factors such as exit strategies and transparency show an increasing maturity in the region’s investors.
Location remained the most important factor when considering a real estate investment as it is affected by conditions in surrounding areas and other local factors, the survey said.
The real estate market in MENA too was upbeat owing to continued infrastructure spending and government backing that is supported by the stability of high oil prices.
“With better economic indicators regionally and globally, the overall outlook for the MENA real estate market looks better than last year,” said Craig Plumb, head of MENA research.
He said that the region remains a seller market with more potential buyers than sellers in most cities.
“MENA investors remain net buyers of real estate although we continue to see a large number of investors seeking to rebalance their portfolios, by disposing of non-core assets and acquiring those more in line with their long term investment strategies,” said Plumb.