UAE property market matures overnight "A much awaited reality check has jolted the UAE property market to adopt positive business principles," says Shuckri Bundakji, MD of DSL Exhibitions and R&R (Realty & Realtors) suite of property industry brands. "With speculators freezing their activity, developers today are more focused on end-user segment, with service becoming a very important part of the product offering."

UAE property market matures overnight

“A much awaited reality check has jolted the UAE property market to adopt positive business principles,” says Shuckri Bundakji, MD of DSL Exhibitions and R&R (Realty & Realtors) suite of property industry brands. “With speculators freezing their activity, developers today are more focused on end-user segment, with service becoming a very important part of the product offering.”

Ajman, 6th November 2008: The UAE real estate market is witnessing a transformation as developers focus on the bedrock of the market – the end user customer – which continues to demonstrate unabated demand due to the current rent squeeze they are experiencing. This was the message that came out of the R&R Local Property Show, which opened today at the Sheikh Zayed Center for Conferences & Exhibitions, Ajman University of Science and Technology, and will continue on both Friday and Saturday. The show is being held under the patronage of H.H. Sheikh Dr. Majed bin Saeed Al Noaimi – Head of the Ajman Amiri Court.

“Ajman, which has always played the underdog to Dubai’s real estate, is suddenly in the limelight, thanks to a confluence of a number of factors, but most importantly, due to continuing end-user demand,” said Tessa Morris, Marketing Director, DSL Exhibitions – organizers of the R&R Local Property Show. “As a market, Ajman has traditionally focused on mid-market units, offering affordable value to the consumers. Now, as the market accustoms itself to low speculator activity, a focus on service is becoming an important part of developers’ strategy to attract the customer who is looking for property to live in.”

Being well entrenched in the mid-market segment, Ajman is likely to continue to do well – particularly since real estate prices here have not swelled as they have due to speculator activity in Dubai. In that sense, the Emirate is well protected. End-user demand remains high due to very high rents across the UAE and this is likely to drive buyers to Ajman. While industry insiders believe that there will be an impact of the global financial crisis even on this market, it is expected not be as severe as elsewhere.

“We are very pleased at the positive response from the companies exhibiting at the show,” commented Abdulla Al Noaimi – Event Director for the R&R Local Property Show. “They are confident in the potential to keep attracting the segment of the market looking for mid price property investments.”
“In a market where end users are increasingly comparing the relatively growing cost difference between Ajman and Dubai, in comparison to the diminishing difference in quality of life offered by both emirates, Ajman is winning more on investor and end user confidence. This is true also when we look at the continuously faster sales phase completion of Chapal’s projects in Ajman.” Commented Jawad Chapal, Executive Director for Chapal.