Things are looking better gradually for UAE Real Estate with interest from specialist funds boosting the market at a modest pace. Reports suggest a better trend in the business in fourth quarter 2009 when compared to third quarter 2009. The number of distressed assets in the UAE will increase, but not many were reported in the fourth quarter. The quarter saw multinationals and financial institutions in selected Asian cities display a renewed willingness to expand. The unemployment rate declined for three consecutive months in Taiwan, Hong Kong and Japan reflecting the overall improvement in the Asian labour market.
However the recovery of demand in the office sector remained lukewarm as many companies continued to adopt consolidation and decentralization strategies to reduce real estate related costs. With the market looking more positive, landlords of prime buildings in leading Asian cities started to take a firmer stance towards maintaining present rental levels. The slowdown in rental decline expected in the third quarter failed to materialize and little improvement was seen, although the reduction in rents began to stimulate tenant interest in certain selected buildings.
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