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Report on the Real Estate Business in United Arab Emirates

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Report on the Real Estate Business in United Arab Emirates
College of Business Administration(COBA)
Master of Business Administration(MBA)

Report on
Real Estate Business in United Arab Emirates

Prepared by:
MBA Students

19th December, 2011 Table of Contents
EXECUTIVE SUMMARY 1
INTRODUCTION 2
HISTORY OF UAE REAL ESTATE BUSINESS 3
NATURE OF REAL ESTATE MARKET 4
SUPPLY AND DEMAND MODEL 5
ELASTICITY OF UAE REAL ESTATE MARKET 7
REAL ESTATE BUSINESS – IMPACT ON UAE ECONOMY 8
UAE REAL ESTATE BUSINESS – CLASSIFICATIONS 9
Residential real estate market 9
Office market 10
Retail market 11
Hotel market 12
UAE REAL ESTATE LAWS 12
CHALLENGES IN UAE REAL ESTATE SECTOR 13
SWOT ANALYSIS OF UAE REAL ESTATE SECTOR 14
FUTURE GROWTH – INFERENCES AND CRITICAL CATALYSTS 14
CONCLUSION 17
REFERENCES 18

EXECUTIVE SUMMARY United Arab Emirates is considered as the most active property market among GCC countries. Real estate and business service sector contribute a considerable share for the growth of the nation. The economic boom during the years 2003 – 2007 increases the demand for real estate properties and there were shortage in residential and commercial segments. Emirates like Dubai have found an important place in world tourism map, the conditions in UAE also attracts foreign investors and job seekers. So, the available real estate space for residential and commercial purposes was not enough to fulfill the present requirement. Real estate markets in emirates like Ajman, Fujairah, and Ras Al Khaimah are not exploited well; they provide new avenues for investors. Completion of some major projects in Dubai and Abu Dhabi in coming years expected to be able meet the requirements. In some real estate sectors like hotel market, experts predicts oversupply situation in future. Global financial crisis in the years 2008 -2009 badly influenced the real estate sector also. Due to uncertainty in markets, many expatriates return to home country and new investors in fear to make large investments. Expected huge


References: • Dr. Eisa Abdelgalil, Badar Aldeen Bakheet, Dubai Real Estate Sector - Monitor Series (2007) [online] www.arabruleoflaw.org/compendium/Files/UAE/92.pdf [accessed on 22/11/2011] • UAE Economic Brief and Outlook 2011 , KAMCO Research (April 2011) http://www.menafn.com/updates/research_center/UAE/Economic/kamco130411.pdf [accessed on 22/11/2011] • Dubai Property Market Overview (Feb 2009), [online] www.cluttons.com [accessed on 23/11/2011] • Jones Lang, LaSalle, UAE Retail Market Overview (November 2010) [online] http://www.dsg.ae/LinkClick.aspx?fileticket=KIYUb_RYXlA%3D&tabid=222 [accessed on 23/11/2011] • UAE Real Estate Reaching the New Heights, KFH research LTD (September 2008) [online]http://www.liquidityhouse.com/upload/UAE_Real_Estate_-_12_Sep_08 _1443.pdf [accessed on 24/11/2011] • Dubai Investment News (28/03/2011), UAE office market is attractive and affordable http://www.thefirstgroup.com/dubai-property-investment-news/article.php? id=800478265 [accessed on 24/11/2011] • UAE Real Estate Sector – Global Research (June 2011) [online] http://www.globalinv.net/research/UAE-RealEstate-062011.pdf [accessed on 24/11/2011]
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