The current phase  in the UAE real estate market is a slowdown and a relatively minor correction, rather than a major crash - with reduced supply coming through at a time of weak demand, allowing underlying dynamics to catch up with the pace of value growth, said a leading Middle East property expert.

"While the impact of reduced oil prices on the economy will lead to a short-term slowdown in demand, this is occurring at a time of minimal supply completions leading to relatively stable market conditions," remarked David Dudley, the international director at JLL Middle East and North Africa (Mena).

"The market experienced a major upswing from 2013 to 2014, led by the residential sales market, with prime residential prices growing at 25 per cent per annum. This pace of growth was unsustainable," stated Dudley, speaking ahead of his participation in the Abu Dhabi Market Overview, which runs on the opening day of Cityscape Abu Dhabi (April 12).

The UAE capital’s largest and most influential property investment and development event, Cityscape Abu Dhabi will mark its 10th anniversary this year and will run untill April 14.

Dudley pointed out that the current shift was a sign of the real estate market maturing and that opportunities still existed for real estate development and investment focusing on end-user demand.

The UAE capital’s largest property showcase gathers local, regional and international exhibitors and high profile speakers, amid a shift in the global real estate market.

"While liquidity has tightened, funding is still available for project finance and corporate level lending - it is just more selective. The good news is that demand growth continues from projects that started when oil prices were strong," remarked Dudley.

"Developments such as the airport expansion or the growth of Etihad airline have an economic multiplier effect, ensuring continued GDP growth, albeit at a reduced pace," he noted.

The upcoming event is expected to draw interest from investors, developers, government authorities and key decision makers overseeing both public and private real estate developments.  

Wouter Molman, the director of Cityscape Group at Informa Exhibitions, the event organisers, said: "The current market dynamics will prompt exhibitors and industry leaders to debate alternative approaches to their investment strategies."

“Market demand may be softening, but the economy is still predicted to grow, so we are confident that the industry leaders will see the event as an opportunity to develop new tactics and discuss alternative investment models,” he added.

In addition to the capital’s key developers and financial institutions, Cityscape Abu Dhabi will see new participants such as Yas International Development, SAPST (Morocco), Garanti Koza (Turkey) as well as returning organisations including Aldar, Eagle Hills, Tourism Development & Investment Company, Bloom Properties, Masdar, Manazel, Eshraq, Wahat al Zaweya and Mubadala on the show floor.-TradeArabia News Service