End users to benefit from real estate crunch A recently conducted survey finds that 66% of nationals and expatriates across the UAE feel that the present downturn in the real estate sector will ultimately benefit end users

End users to benefit from real estate crunch

A recently conducted survey finds that 66% of nationals and expatriates across the UAE feel that the present downturn in the real estate sector will ultimately benefit end users

Dubai, 4th November 2008: In one of the first surveys conducted with nationals and expatriates since the real estate industry in the UAE took a downturn a month back, fully two-thirds of those polled feel that the current scenario will ultimately be to the end users’ benefit. The survey, conducted on the eve of the upcoming R&R Local Property Show, Ajman – organized by DSL Exhibitions, and due to be held on the 6th, 7th and 8th of November at the Sheikh Zayed Center for Conferences & Exhibitions, Ajman University – also revealed that 47% of the respondents felt the UAE will remain an attractive destination for real estate investments over the long term.
“We wanted to understand the impact the global financial crisis is having on the opinion and mindset of UAE nationals and residents who either own property or are seriously considering it, in terms of demand for real estate,” said Tessa Morris, Marketing Director, DSL Exhibitions. “All of us in the industry know that there is a downturn but how we manage it as an industry is the key to our success. The key to riding this crisis successfully lies in trying to understand what will sell in the next 18 months and who will be buying it.”
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Commenting on how the industry is responding to these developments, Ahmed Chapal, Executive Director for Chapal, said: “We are already in the hand-holding mode with our investors and home buyers through financial packaging, policy makers should look at how to speed up implementation of laws and regulations, so mortgages and home loans can be made readily available for buyers of freehold properties in Northern Emirates.”
Survey results:
Survey design:
• The survey targeted UAE nationals and those expatriates who have lived in the country for the last 3 years or more
• Sample size: 312
• The survey took into account the demographic makeup of UAE. With that in mind, the proportion of the respondents is as follows: Emirati Nationals 19%, other expats (Arab and Iranian) 23%, South Asian (Pakistani, Indian, Bangladeshi, Sri Lankan) 50%, other expatriates (includes Westerners and East Asians) 8%.1
• Emirate-wise residence split of respondents: Dubai 34.5% / Abu Dhabi 30% / Sharjah 18.5% / Ajman 7% / Umm Al Quwain 0% / Ras Al Khaimah 7% / Fujairah 3%
• 28% of those polled already own property in the UAE, while 72% don’t.