Dubai’s annual real estate investment conference has rebranded in its quest to provide innovative global opportunities and investment security, the chairman of property advisory firm Jones LaSalle Blair Hagkull has said.
The event, scheduled to take place from October 4 – 7, 2010 at the Dubai International Exhibition and Convention Centre, would now be referred to as Cityscape Global, as organisers seek to shed the image of a beleaguered real estate market and wider economic problems that have characterised the emirate in the last two years.
Real estate sector in Dubai has in recent times been facing significant decline in investor confidence, due to slumping property prices by more than 50 per cent from their 2008 highs and an increase in property disputes. Tens of billions of dollars worth of projects have also been scrapped or facing delays. The market, however, may be on the mend, and Dubai is poised for good times ahead, Hagkull says.
“As Cityscape Dubai repositions itself as a global affair, there’s no doubt that previous exhibitions were a massive successive, and this therefore called for the rebranding of the flagship event developed in Dubai that has achieved international recognition and success,” Hagkull said, in an interview with Alrroya.com.
“Due to this growth, we now have Cityscape events being held in Abu Dhabi, Riyadh and Jeddah in Saudi Arabia, Shanghai and Latin America,” he added.
Investors see significant growth in Mena markets
A report published recently by Jones Lang LaSalle said Dubai’s property prices have fallen primarily due to increasing supply, a trend that will continue with 100,000 new units anticipated for delivery over the next two years.
According to JLL, Dubai is recognised as the most competitive city in the region on a number of different indicators and therefore retains its place in the investment portfolio of most investors, albeit with a lower priority than in the past.
In February last year, the advisory firm suggested that 2009 would be the year of contraction, 2010 would be the year of consolidation and 2011 would most likely mark the beginning of a broader real estate recovery.
“The findings of our latest investor sentiment survey suggest this prediction is holding true,” the executive added.
While fewer investors are now expecting to see significant value increase in markets such as Saudi Arabia, Abu Dhabi, Egypt and Qatar on balance, they are still expecting these markets to experience marginal growth.
The second day of Cityscape Global will be dedicated to examining growth in the Mena regional markets, assessing economic outlook and how the region is faring compared to the rest of the world.
Fair to feature opportunities in emerging countries
Specifically the sessions will focus on the potential regional economic powerhouses, such as Saudi Arabia, Abu Dhabi and Egypt. It will also cross reference the investment potential and returns from hospitality, infrastructure and residential property, as well as examining Islamic financing options.
“In broad terms, investors at this point are more bearish on the Mena markets than they were six months ago, with most markets showing a fall in capital value growth,” said Hagkull.
The investor study also showed, interestingly, that around 50 per cent of investors still prefer to “hold” assets in Dubai, the largest percentage among all Mena markets.
“The Dubai market is experiencing a closer balance between potential buyers and sellers, though buyers continue to exceed sellers by about eight per cent,” Hagkull said, adding, “Despite the market correction in values there appear to be a few distressed sellers in the Dubai market, with many owners unwilling to dispose off assets at the bottom of the cycle.”
According the organisers, three prominent global investors will also go head-to-head pitching for the securest location or strategy for investing $100 million.
Other issues to be addressed during the real estate event include a comparison of developed, emerging and frontier markets and the opportunities, risk-adjusted returns and exit strategies for international expansion.
“Although Cityscape is able to focus on what is happening in the broadest spectrum, at the end of the day the show tends to be real estate professionals talking to real estate professionals,” Hagkull said.
Consider also reading:
Cityscape Abu Dhabi
Watch related videos
Dubai office market growth slower than residential
Dubai hotels occupancy rates up, RevPAR continues to decline
Your comments