Search This Blog

19 Nov 2008

Dubai Real Estate Ruled by 'Natural Selection'

In a recent real estate seminar, sponsored by World Class Group in Dubai, the keynote speaker said that the future of the real estate market will be based on Darwin's law of natural selection.

Michael J. Tolan, CEO of World Class Group was addressing representatives from over 30 real estate related companies attending the forum, 'Beating the Economic Meltdown, Wrestling Alligators in Dubai'. The seminar was attended by hedge fund managers, property developers and real estate agents.

Tolan said that Developers who will continue to use the models of the past 18 months in the market could be in for a severe correction in their performance numbers, "The trends of the market will follow Darwin's Theory of Natural Selection and the entire model of the market will transform." he said.

"Developers will take lessons from the past recessions and will innovate new packaging and offerings to comply to investor demand," Tolan Said, "More rent to own schemes, attractive and flexible in-house finance, and real estate investment trusts will emerge to lure investors back into the stormy and uncertain waters of the real estate market."

Tolan also highlighted the advent of fractional ownership and timeshare schemes which will evolve in the Dubai UAE markets to offset the oversupply of unsold inventory and attract a new class of investors and speculators.

"In the past, the lucrative Dubai real estate market has succeeded on the heals of market euphoria and innuendo, which has created an artificial hype. Vanity selling has been the main culprit," he said.

The market value today exceeds 4 trillion dollars of existing or pipeline projects, including the world tallest building and projects like the Palm Islands which feature Trump Towers, Atlantis and the new World Islands.

"Developers and agents in the future must address the fear factor that may prevent investors to plunge into the market, and good solid regulations that Dubai has now adopted will go far to overcome consumer protection issues often absent in the past."

"Real estate consumers will respond when they have a big enough incentive to do so, therefore the more flexible and innovative the offering, combined with stringent measures of safety and protection,the better the outcome for the future of prosperity in the Dubai market arena," he added. "The Dubai market is experiencing a slow down, however is dynamic, amazing and full of promise."

1 comment:

Anonymous said...

I believe "natural selection" is the most basic rule of the free market. Unless you use government intervention (it sounds like fairy tale in these days...), only the strongest will survive. In human society we have solidarity, which enables surviving also for less lucky people, but in business? Bad projects should die immediately...
Take care