Real estate markets in the region are likely to stabilize next year and recover by 2011, due to improvement in investor sentiment, reports market researcher, Jones LangLa Salle (JLL) in their report. A major component of such a recovery will be the attraction of long-term institutional investment into the property sector. Some improvements have been made to create positive investment environment, and improve overall competitiveness at the macro-level. Progress has been made to meet the requirements for real estate recovery in several markets across the region. The biggest challenge is at the real estate industry level, JLL mentioned in their report. Major changes are needed in the attitude of existing owners to position their assets and make it more attractive to regional and global long-term investors, the report points out. JLL’s report points out Doha as one among the strongest performing real estate markets to record as appealing to long-term investors in the next one year. However, the attractiveness may be limited by the comparatively high pricing and limited availability of investable product. Few of the initiatives as outlined by JLL for creating an investable product, includes price adjustment, asset management, stable cash flows, and legal structuring. Owners also should recognize the value of their assets in the current market trends and price them accordingly. They should consider the possibility of a stable income for their operating assets, as it could lead to acceptance of long-term leases than those traditionally offered. Owners should also implement an asset and property management strategy that can improve the value of their asset in the long run. They have been asked to ensure that the legal structure of the property is adheres to international industry standards.
Online Qatar