Dubai?s real estate sector gets ?smarter?

Expo 2020 will have a positive impact on the UAE over the long-term with hospitality, logistics and retail being the major winners, Jones Lang LaSalle, a leading real estate investment and advisory firm, said on Monday.

However, the World Expo will have limited direct effect in 2014 because of restricted short-term activity, the real estate advisory firm said while warning that both price expectations and excessive new supply would require careful management leading up to 2020.

In its ?2014 top trends for UAE real estate? report, Jones Lang LaSalle (JLL) brushed aside concerns that Dubai would experience another bubble with unsustainable price growth in the residential market, increasing cost pressures and return of speculative activity.

On the other hand, JLL said there are many differences this time around that makes for a ?smarter? market with investors getting more cautious, better regulations, and phased out property development in line with demand.

?There is also less reliance on pre-sales and sub-developers and significant levels of new supply are being provided,? JLL noted.

The International Monetary Fund has cautioned that Dubai might need to intervene in its property market if there are signs of overheating to prevent another boom-and-bust cycle.

via Business – Dubai?s real estate sector gets ?smarter?.

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