The international real estate advisory and investment firm “JLL” has issued a report lately demonstrating the main aspects of the real estate market in UAE for 2016.
The Chief Executive Officer of JLL cited the report saying that the market is now capable of facing the economic fluctuations caused by oil prices plunge and the geopolitical tensions.
The report highlighted a number of trends to be followed in the market this year including:
Lack of liquidity: The decline of oil prices will make the attainment of funds for real estate projects more difficult for developers which will push them to look for alternative resources. On demand projects are considered good alternative financial sources, they are developed according to the specs and characteristics defined by the properties owners or tenants.
The decline of capital value: Unlike previous years, the value of capital pumping from the Middle East to global real estate markets as declining registering 110 billion dollars last year.
Hospitality: This sector witnesses high influx of visitors and is expected to grow by large extend to meet all customers’ needs.
Buildings safety: Keeping attention on buildings’ safety is being sought by developers, properties owners, and governmental entities.