Interest from specialist funds edged up for real estate in the UAE in the fourth quarter 2009, according to a report.
"In the UAE, interest from specialist funds continues to edge up although at a modest pace and generally in line with the third quarter 2009," said Royal Institution of Chartered Surveyors (RICS) in its latest report.
According to the report, the number of distressed assets in the UAE will increase, but not many were reported in the fourth quarter.
In February, Dr Sven-Olaf Vathje, Partner and Managing Director, the Boston Consulting Group (BCG) had told Emirates Business that "opening the door to institutional investors and funds might be a way out for regional property companies to sustain growth."
Asteco Property Management CEO Elaine Jones had said late last year regional and international real estate funds were likely to invest $2.5 billion (Dh9.18bn) in the GCC, Middle East and North Africa (Mena) markets.
"We are currently advising both regional and international funds looking to invest into the GCC markets. The funds that we are currently advising have capital reserves of close to $2.5bn. These funds are actively looking for suitable investment products in the GCC," she said.
Meanwhile, the Asian office market continued to approach the bottom of the present cycle as rental declines slowed further and absorption gradually increased in the fourth quarter 2009.
Despite the positive news on the employment front, the recovery of demand in the office sector remained lukewarm as many companies continued to adopt consolidation and decentralisation strategies to reduce real estate related costs.
Emirates Business
