DTZ today recommended the Gulf property market as a strong proposition for investors seeking to escape a global fall in property investment transactions.
The recommendation follows the publication of DTZ’s annual Money into Property report, which looks at global property trends. The report revealed that the value of the real estate capital market reached US$12 trillion in 2007, up 18% on the previous year. Global investment transactions also grew to US$730 billion in 2007, but, following the sea-change in the global investment environment over the course of last year, DTZ expects a fall of 30% in 2008 to about US$500 billion. Global direct real estate transactions were down some 50% in Q1 2008, compared to the same time in 2007.
Robin Williamson, Managing Director of DTZ Middle East Operations, said:
“Although the worst of the first phase of the ‘sub-prime’ crisis appears to have passed, we firmly believe that the credit crunch has further to go and will continue well into 2009 - across the European and US property markets in particular. This means we will see a significant decrease in property transactions in these markets, as revealed by the Money into Property report.
“Few regions will escape the effects of the sub-prime fall out, however we predict that the Gulf region will, to a greater extent, be significantly less affected, along with certain other markets in the Asia Pacific region. Based both on our research and our on-the-ground experience of dealing extensively across the Gulf markets, we have seen strong indications that the regional property markets are much less likely to succumb to these global trends. Indeed, we are planning to expand our operations in the region to take advantage of the strength of the local property sector.”
DTZ is the most established firm of real estate advisors in the Middle East, with its first permanent operations beginning in 1975. Today, DTZ has a presence in six GCC locations (Abu Dhabi, Dubai, Bahrain, Kuwait, Qatar and Saudi Arabia), and is currently undergoing aggressive expansion across the region to match a growing high-profile client list. Each DTZ office provides a full range of real estate services staffed by qualified expatriates and experienced Nationals.
© 2008 Al Bawaba (www.albawaba.com)
