Property market 'seeing recovery'

A report by the property consultant Jones Lang LaSalle says the Middle East and North Africa economies are showing signs of recovery.

ABU DHABI // The regional property market has started seeing "green shoots of recovery" in the first part of the year, with the market expected to start recovering as early as the autumn, a property consultancy said in a report. Jones Lang LaSalle analysts said that the Middle East and North Africa economies had started making progress on 12 of 17 key requirements for the economy to recover, including recapitalisation of banks, reduction of future supply of homes and "concerted government action". Still, the economies face serious challenges in the year ahead.

"Despite the emergence of more positive factors over the past three months, there is little doubt that we remain in the downturn stage of the cycle, with most markets likely to experience downward correction in prices over the next six to 12 months," Jones Lang LaSalle said. The report said that Abu Dhabi had "significant long-term potential", while Dubai had opened up to "opportunistic investors" looking for medium-term and long-term investments. Saudi Arabia and Qatar, however, were listed as some of the most lucrative markets in this period.

The global financial crisis will push the entire region to a "more mature, global model of financing for both development and investment," the report said. [e-mail]