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Al Mazaya Reviews 2012-2015 Files

Cityscape event to address market fluctuations and regulatory tools

Real estate exhibitions attract a lot of attention to regional property markets and often have a positive impact on the current status and future of the real estate sector. Thanks to their role in stimulating the pace of financial, commercial and service activity within the market, real estate exhibition activities create a state of healthy competition between international cities, with each looking to win the honour of hosting such events.

One of the key international events, Cityscape Global, will be hosted by Dubai next month, with developments and changes in the real estate and other sectors set to be at the forefront of discussions. The changing levels of investment priorities for the governments of the region – and the world – is notable in relation to their positive impacts and learning from experiences gained from an understanding of errors and difficulties faced by former events. By offering projects that are suitable for all society segments, these events have learned that they need to adapt to all new circumstances in order to stay relevant.

Al Mazaya Holding’s Weekly Real Estate Report considers real estate exhibitions and their accompanying activities among the most important drivers for business, at regional and international levels. The most renowned drivers have the largest impact on real estate and non-real estate development areas and investment fields. The wider impact of these events extends to the role they play in highlighting viewpoints of different investor categories: visitors, real estate developers, organisers and official bodies. They also showcase available investment opportunities, new projects and develop job opportunities and investments at the local level.

It is noteworthy that real estate exhibitions and events of a global nature have proved feasible at the level of providing communication mechanisms and channels between investors and developers as well as end user at the market at the region’s level, and contributed, as a whole, to encouraging individual and corporate investment. Al-Mazaya’s report states that the importance of exhibitions extends to remedying and discussing critical real estate issues and others’ experiences in facing the challenges and impediments facing the real estate market. This is in addition to promoting knowledge, gaining experiences related to the real estate sector, transparency indicator improvement mechanisms for supporting investment as well as current and potential investors. It has become evident that many entities are awaiting these real estate events and activities. Meanwhile, Cityscape exhibition is considered the largest platform for showcasing the developments, projects and latest updates related to real estate world.

Al Mazaya’s report addresses the journey and experiences of Cityscape events during the recovery period in 2012 – this is generally considered the starting year of real estate market recovery at the regional level from the aftermath of global financial crisis, as it was able to attract international exhibitors, marking growth rates exceeding 50%. Cityscape 2012 was considered a round of refreshment; testing real estate indicators and real demand indicators synchronously with the offering by local real estate companies of new projects helped increase the number of visitors and attracted further investors.

The exhibition carried new titles in 2012, aimed at securing investments, promoting levels of confidence and improving the investment environment. In this regard, it is worth mentioning that the successes attained by Cityscape Global that year had a considerable effect on investment decisions of both individuals and companies. It also motivated many investors to liquidate their investments and allocate them towards real estate sector, which marked a rise in return rates as compared to other opportunities, risk levels, and time periods required for achieving these returns.

In 2013, the real estate market in the region in general, and in Dubai in particular, resumed its revival journey. The market was tested by the events and activities of projects offered during the days of Cityscape Exhibition 2013, which was considered by then a platform for consolidating the global culture in the local real estate market. Moreover, the exhibition witnessed remarkable attendance of buyers, end users, and the participation of largest local and international real estate development companies. It was remarkable, too – by that time, several varying new real estate projects had been launched – housing, commercial, hotel or even entertainment properties – in addition to the comeback of a number of developers unveiling their future plans utilising the exhibition platform.

The exhibition events of 2013 reflected recessions at the pace of rapid speculations that did not exceed normal ratios, as the pace of activity and number of executed deals as a direct result of positive developments witnessed by the real estate market in Dubai increased. The system of legislation safeguarded the rights of all and also showed the distinguished investment atmosphere provided by the emirate for holding such events and providing several opportunities and options for those seriously seeking work and development. The exhibition is considered the largest and biggest following the global crisis, as it witnessed the offering of further projects, promoting confidence in the local investment environment and durability of the investment environment of the real estate market at the level of the emirate, state and region.

The Al Mazaya report also indicated the exhibition’s impacts during its cycle in 2014 on the real estate market, as well as its positive indicators. First of which was the absence of speculators from the real estate arena and executed deals, while the exhibition witnessed considerable attendance of national real estate companies operating in the local market, which unveiled a package of new development projects that target the investor and end user segment, so that the total value of offered projects reaches about AED 50 billion. Furthermore, the exhibition marked an increase in intensity of competition among the development companies, as a part of their attempts to attract investors and buyers seeking safe investment and real prices in the absence of speculators. The report further states that the remarkable turnout of individual investors had an impact in the success of the exhibition’s events, which resulted in closing tens of purchase deals of both turnkey and off-plan projects. The market pace of activities backed the intent of most real estate companies to attend and permanently participate in launching their projects during the exhibition’s events, given its momentum year after year.

In 2015, the exhibition’s events pursued the success and growth tracks, as the exhibition’s events marked the offering of more ambitious projects, facilitated by the need for housing for middle-income consumers. It is worth mentioning that the Turkish real estate companies were the largest participants in the 2015 exhibition, and the aggregate value of projects offered during the exhibition’s events amounted to AED 3.6 trillion. The exhibition’s pavilions witnessed the participation of the best real estate developers in Dubai, with a remarkable attendance of a group of government real estate and commercial development organisations.

Al Mazaya’s report asserts that all real estate stakeholders have been awaiting the exhibition’s events to offer new and distinguished projects despite the financial, economic and political pressures. Meanwhile, Cityscape Global has become the best means to test recession and boom indicators of the real estate market at the region’s level as a whole. This is in addition to testing the impact of crises that blow away the global and regional real estate, financial, and oil markets. Finally, real estate developers are relying on the level of success of the events of the forthcoming exhibition to continue to maximise the demand and activity pace and encourage finance channels to pump further liquidity and investments. Meanwhile, investors are looking for good investment opportunities to offer further projects that fulfill their needs and coincide with their different objectives at the level of value, prices and feasibility.