Property chiefs set out vision for the future

Real estate chiefs in Dubai on Tuesday outlined their vision for the future as the industry attempts to recovery from a dramatic slump during the past four months.

As a new report by international property consultants Colliers revealed that house prices in the emirate fell by eight percent during the last quarter of 2008, members of the Dubai Property Society's (DPS) insisted the real estate landscape was "positively changing".

A trend towards reverting back to fundamentals, the creation of affordable housing and the changing of mindsets - a move away from short-term prospecting towards long-term equity investments - was crucial to the future of the sector over the next two to three years, the Society said on Tuesday.

"It's back to the basics for 2009 as the remaining liquid investors flock to traditional investment instruments such as direct investments and ownership of real estate,' said Blair Hagkull, managing director in the Middle East for Jones Lang LaSalle.

"I think 2009 will be a majorly transitional year for the sector; things will improve gradually in 2010, but by 2011, I expect the sector to be stabilised and matured in terms of return of investments, affordability and regulations."

Ronald Hinchey, the resident partner of property consultancy firm Cluttons - also a member of the Society - added: "Although it has a relatively short history, the real estate sector in Dubai has experienced growth rates far exceeding those almost anywhere else in the world.

"The expensive, impressive developments seen throughout the city were acceptable until now; however, the new challenge facing Dubai is bringing affordability back into the market."

Speaking about the role of RERA, he said: "We will see more corrections and regulations, and I think RERA is doing a great job so far. Through 2009, I think the focus will be on solving disputes between end-users and developers, and I believe that RERA should and will continue to enforce a fair game for everyone's benefit."

Iseeb Rehman, managing director of Sherwoods, stressed the importance of changing the mindsets of investors in terms of asset values, adding: "I am a strong believer of brands. I believe that real estate companies, which enjoy good reputations and have a respectful track record will survive the crisis.

"Therefore, companies should now focus more on professionalism, quality and innovation in 2009. I think that the current financial crisis will help the real estate sector come of age; we will see a shift back to fundamentals with a focus on quality and affordability."

Naaman Atallah, chief operating officer, Emaar Properties, said: "Developers must concentrate their energies on their projects, build a positive outlook and continue to inspire confidence in the economy."

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