Bahrain Real Estate News
MENA real estate market showing significant progress
Tenants and occupiers in the MENA (Middle East and North Africa) region are offered with favorable market conditions to take advantage of the new, competitive nature of the market, say the latest edition of Jones Lang LaSalle about MENA House View.
The report noted that the tenant sentiment has reached a tipping point, and has improved considerably in the region over the last six months.
The improved attitude of investors has been reflected by a ten-fold increase in the level of active and potential demand in Dubai over the past six months. However, the improved sentiment is yet to manifest itself in the form of increase in signing of leasing activity, the JLL report said, and this is hoped to happen within next six months to one year.
Despite increase in vacancy rates, there will be a shortage in supply. The strategies to be recommended are rent-free periods, leasing incentives and provision of longer leases for major anchor tenants and occupiers. Few of the more innovative landlords may also offer finance packages to assist with initial capital expenditure required for fit-outs, the JLL report said.
According to the report, improved demand is a prerequisite to attract long-term investors’ to commercial markets in the MENA region.
JLL hopes to boost tenant and occupier demand to convert into huge investor demand later in 2010, which is shaping up to be the vintage year during the current real estate market cycle.
The report also said that considerable component of corporate demand in the MENA region will come from large multi-national businesses.
Posted on 3/11/2009
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