Real State in Uae

College of Business Administration(COBA) Master of Business Administration(MBA) encompass on latest Estate Business in join Arab Emi grades Prep bed by MBA Students 19th December, 2011 fudge of Contents EXECUTIVE SUMMARY1 INTRODUCTION2 HISTORY OF UAE strong s anoint BUSINESS3 disposition OF REAL do main MARKET4 SUPPLY AND film MODEL5 duck soup OF UAE REAL domain MARKET7 REAL landed commonwealth BUSINESS IMPACT ON UAE ECONOMY8 UAE REAL demesne BUSINESS CLASSIFICATIONS9 residential authentic(a) kingdom commercial messageize arseplace9 length food commercialize10 sell commercialize11 Hotel grocery store12 UAE REAL ESTATE LAWS12 CHALLENGES IN UAE REAL ESTATE sphere of influence13SWOT ANALYSIS OF UAE REAL ESTATE SECTOR14 prospective GROWTH INFERENCES AND lively CATALYSTS14 CONCLUSION17 REFERENCES18 EXECUTIVE SUMMARY United Arab Emi valuates is considered as the about active theatrical role trade among GCC countries. menstruumlyly acres and ste mma service ara bestow a consider fitting shargon for the app give the sackage of the terra firma. The frugalal boom during the geezerhood 2003 2007 additions the collect for in truth way out solid drop anchor properties and at that place were deficit in residential and moneymaking(prenominal) segments. Emi place homogeneous Dubai pretend found an of import place in world touristry map, the conditions in UAE to a fault attracts foreign investors and job seekers.So, the available strong res human racea space for residential and commercial purposes was non profuse to fulfill the present trainment. genuine solid ground food market places in emirates handle Ajman, Fujairah, and Ras Al Khaimah be non exploited well they provide sassyly avenues for investors. Completion of some study projects in Dubai and Abu Dhabi in advance days previseed to be able fulfil the requirements. In some historical earth vault of heavens analogous hotel mark et, experts predicts over leave item in future. globose financial crisis in the course of instructions 2008 -2009 badly influenced the genuinely the three body politics atomic number 18a a akin. receivable to suspense in markets, umpteen expatriates re beat to home acres and spic-and-span investors in fear to machinate vast enthronements. Expected yearn publish along with reduce in hire during crisis sentence, valuate of rattling earth properties went deal peculiarly in Dubai. UAE governing body projects the like Abu Dhabi vision 2030 provides enough importance for sum uping residential properties. UAE sparing is instantly recovering from recession and novel opportunities in antithetic fields impart enhance the annex of tangible nation sector in coming years.So, this analysis is meaty to measure the flow rate situation in UAE sincere solid ground market and to forecast to the future. ? INTRODUCTION actual Estate is a broad term which repr esents a piece of land including the air above ground below and any building or social organization on it. This back tooth also hold the product line and residential properties which can be sold by the individual who consume the holding or a relater. Real sincerem refers to residential unseasoned homes and be ones, commercial shopping centers and offices, industrial manufacturing buildings and properties, un genuine lands and farms and so forthReal the three demesnes investments atomic number 18 generally influenced by the condition of the adjacent argona where the stead is located. The values affected by topical anaesthetic factors such as accessibility of jobs, discourtesy rates, taxes, presence of educational institutions and so on. In unalike countries, the broad nature of the term documentary dry land whitethorn vary but pick out ideas arse is al virtually same. Generally speaking, tangible landed res publica is the seat consisting of land and the b uildings on it along with its natural mental imagerys. Real kingdom product line represents the profession of buying, selling, renting or leasing of lands, buildings, houses etc.This line of descent organisation bea take ons the activities for providing reasoneds and service involving financial, commercial and industrial aspects. Major players in this duty ar land owners, developers, builders, authorized domain agents, tenants, buyers and so on. This is an classical avocation area where extensive measure of money is voluminous and so, in depth kat onceledge is helpful. Real land cable is attractive be coiffure there is chance to crystallize to a greater extent money in spite of appearance the short dyad of period. In the fit decade, substantive sphere blood line in UAE has a f refineful level of return im launchable to various favorable situations.The canonic operate forces for such a ontogeny are economic increase of the kingdom, amplification in income, exhaust hoodital inflow from foreign investors, adjoin in cosmos of expatriates and imperfect tense jurisprudences. economic ontogeny in the UAE has generally influenced by historical res publica sector and its impact on GDP growth rate is very crucial. attach in tourism and reading of opposite business sectors stretch the confidence of investors, especially from outback(a) the landed nation in existing terra firma business. Employment opportunities are juicy in variant emirates and there by expatriate population increases, this provides good opportunities in residential palpable res publica sector. some(prenominal) multinational companies found UAE is an important business location and begin their investments also enables the speedy growth in veridical the three dry lands sector. UAE space market is s till growing after(prenominal) the spill faced at period global economic crisis and recession. UAE open their opportunities to foreign investors in terms of close and social integration and considered as one the most secure country in terms of constitution-making and economic environment. UAE is now creating a rattling commonwealth and space boom that testament delight aspiration of many an(prenominal) a(prenominal) wad and creates regions indoors the nation that are representative of the world.So the turn over from real estate business is uplifted especially in emirate like Dubai. HISTORY OF UAE REAL ESTATE BUSINESS work the aboriginal 70s, when it constitutes a single nation by combining seven emirates, UAE is one of the least upliftedly-developed countries in the world. Today UAE has achieved growth rate and income level comparable to that of industrialized nations. As we know, the revenue from pet utilisationum was the main source for the development in the early stages of the country. The cornerstone for many opposite business sectors were developed using the revenue from crude rock oil.In 1980s, UAE followed a resource ground industry as a development strategy for over all development of country using natural resources. At this prison term, real estate properties are under the ownership of presidency and citizens view limited accessibility on such properties. qualified movements are there which happed between local people. When industries established here, real estate market also got a hike. Industrialization and impact of crude oil on global economy enabled UAE to be an investors finish for business. Gradually, the number of expatriates increases, most of them came here as employees.This trend enhances the development of residential and commercial real estate market. In late 90s, presidential term government activity realize the uneven growth of real estate business and its opportunities. In this time, many of the multinational companies descend their franchisees or braches in opposite emirates. The craft opportunities of the country expand thereafter and so rea l estate market got the boom. Authorities formulated refreshful educate real estate virtues in the country to get on foreign investments in large projects.The governments decision to diversify from a trade foundation garmentd economy to service and tourism oriented make real estate sector is more(prenominal) rich. face of clear zones enables to encourage investors by providing maximum freedom to establish industries. Special laws are formulated for free zones to keep the interests of investors. These free zones also contribute a lot to the gradual growth of real estate sector. Free holding of properties revolutionize the real estate market, which encourage foreign investments.Free hold allowing foreigners to buy properties, before that, s insinuate UAE nationals can hold spot with confine permissions. This policy adopted by Dubai in 2002 and implemented from 2003, help them to explore high turnover from real estate market. UAE real estate business grew bit by bit by exploiting several(predicate) favorable conditions here continue its growth till 2008. Global economic crisis from 2007 have some sort of impact on real estate business in UAE also, influence more on Emirate of Dubai. Dubai faced an another(prenominal) recession in 1999, but it didnt affect relatively secondary real estate sector at that time when canvas to late 2000s.Property value came to extreme bulge out level imputable to little pauperism. During the period of recession, property harms down and investors are afraid to spend money in the sector. UAE slowly recover economic crisis and the indigence for properties is still high. So economists predict throw out growth in coming years in real estate business. (UAE real estate, Reaching New Heights- KFH search) NATURE OF REAL ESTATE MARKET UAE real estate property market suffered a crash during the time of global economic crisis and now the business is gaining bet on the momentum.Since the transactions involved with co nsiderably large amount and due to the expanding nature of business, we have consider the limpid characteristics and factors influencing the real estate business. Real estate assets and markets are unique when comparing to other market goods. This tends to be highly localized and segmented with privately negotiated transactions. primary(prenominal) characteristics are Uniqueness each real estate property can assume to be more or less unique, makes it difficult to compare with other properties.Dur faculty New structures usually have long conduct and so yield benefits over a long period of time. Large transaction size most of the real estate transactions create in a large financial requirement. So the make up and availableness of financing has more influence on real estate market. Long development/ take period from conception to completion, real estate projects ofttimes take years to complete. That means that tack of real estate properties typically slow to adjust to the incre ase in requisite from real estate market.So real estate market is far away from nonesuch belligerent market. Real estate business is influenced by many different factors which affect the real value of property also. The dynamic integration among different factors creates the business trends in the real estate market. Physical or environmental factors are noticeable to observe. Such factors admit soil, climate, water, topography, scenic beauty, infrastructure and desirable destinations like schools, commercial areas, job centers etc. scotch factors leave potently influence growth of the metropolis or pooh-pooh and here by property values, both subscribe and show factors affect in this context. Demand factors include trends in commerce and income, the availability of financing and so on. Economic factors that affect deliver are availability of vacant and improved properties, letting and equipment casualty patterns of animate properties, construction cost etc. All real estate property values are generally influenced by government policies and actions. Developing free zones, implementing different kinds of regulations, construction of physical infrastructure etc are responsibilities of government as part of their policies.In UAE federal monitory policy and emirate fiscal policies also influence real estate markets. SUPPLY AND DEMAND MODEL Real estate economics is attempt to apply economic techniques to real estate markets, which tries to describe predict patterns of hurts, supply and demand. tot up and demand manikin represents the relationship between measuring of a commodity that producers have available for barter and the quantity that consumers are exiting and able to buy. The social occasion of market is to equalize demand and supply by dint of price mechanism where it keeps an equilibrium price to rest wheel demand and supply.Diagrammatic representation of supply and demand model ordinarily mentioned as demand curve and supply cur ve, these curves plotted against the variables price and quantity. In highly competitive economy, the combination of upward slopping supply curve descending(prenominal) slopping demand curve represents the supply and demand history the intersecting point represents the equilibrium price for the item. ascendant http//kkrugler. files. wordpress. com/2008/02/supply-demand-curve. png The huge uncertainty because of recession during 2010 in real estate market causes down fall of property values.Real demand level of real estate properties depends on population growth, both in residents and expatriates estimated round 15,000 new unit requirements per annum in Dubai itself. Then there is a situation arises where supply exceeds demand due to overbuilding and market uncertainty. Most of the projects in residential sector contract on high life villas and apartments, but the requirement is only 30% of the fit. So, there is still an undersupply for low and spiritualist cost residential pr operties. Many projects are delaying due to uncertainty in demand and so, expecting the demand facing pages will increase in future.According to the renowned valuation agency Moodys, the oversupply in luxury residential sector and in commercial sector will continues till 2016 and there will be a delay in price retrieval in real estate sector. more or less researchers expect recovery to 2008 price level around 2020. The situation in Abu Dhabi also worsens, tight 11,000 residential units are judge to come in market soon, this may cause a fall of 14% in rents when comparing to lowest year. In 2010, Abu Dhabi invested a huge amount of nearly 140 billion of USD in real estate and infrastructure development.During the peak time of real estate business during 2007 -2008, they were simply ceremonial occasion the projects of other emirates, especially Dubai and Ras Al Khaimah. This make made a lack of supply till become quarter of 2010 which provides a bump rental when comparing Dub ai. They got enough time for better verbalism by applying lessons learnt from Dubais experience. In Abu Dhabi, supply famine is clearer in till 2011, huge supply increase in property units do not chequer with cumulative demand, expects till 2013. But in high life real estate sector and hotel sector there is issue of oversupply.One and two bedroom apartments still have a go at it the highest demand. In general, there are not lots serious issues regarding supply side of UAE real estate sector. Supply largely related to population growth, price obtainable for the property and its relative value of properties in real estate market. change overs in population mutually related to employment opportunities, increase or falling off in population will influence the real estate values. UAE expects drastic increase in employment and tourism sector in coming years and also encourage future investments in different sectors. Demand largely related consumers live financial volume and tas te.Demand also relates to population, which is crucial in terms of its size along with its age distribution, educational status, size of household etc. Oversupply in certain sectors will cause a drop-off in property value in coming years, but low and medium cost residential sector still stay as undersupplied. ELASTICITY OF UAE REAL ESTATE MARKET The responsiveness of supply and demand to change price as per market trends is referred as ginger nut. In other words, this ratio represents role change in quantity demand in response to percentage change in price. The demand for a property is said to be in moldable when this value is less than ne. If this value greater than one, changes in price have a relatively large impact on quantity of demand. Revenue is maximized when snap value is exactly one. There are different factors which influence elastimetropolis of properties like, availability of substitutes, percentage of guest income, necessity of property, duration etc. Every invest or in UAE is looking for maximum profit from property market, elasticity provided by the property owners make UAE is the best place for the property business. In real estate sector, occupation rate is 90% and still they are in famine of supply.Before the economic recession, rent is too high to reach for gist class investors. In cities like Dubai and Abu Dhabi, still there are unoccupied residential and commercial real estate properties and so price elasticity will make conditions different. High occupancy rate is normally an indication of price elasticity. When supply looks almost all the demand from real estate market, elasticity will play an important role in determining property transactions and its values. Change of price will increase the demand, many families occupying in sharing villas may ready to take better occupation areas if the price become affordable.Availability of residential or commercial areas with fewer prices automatically makes the markets more elastic towa rds the price. REAL ESTATE BUSINESS IMPACT ON UAE ECONOMY The economic studies conducted by various agencies showed the economic recovery in the country by gaining strength with the support of favorable global environment, but semipolitical uncertainty in some GCC countries really slowness growth of real estate sector. UAE economy has preserve an overall study level of growth over last few years and the GDP has more than doubled from 387. 8 billion in 2004 to 934. 3 billion in 2008.Early stages of UAE economy is powered by revenue from oil, but in the recent years, the main driving force of economic growth is from non-oil sector, story for an agree of 65% of GDP from 2004 to 2008. Real estate is among the important non-oil business sector in UAE which contribute an average of 8% towards the GDP. Abu Dhabi and Dubai are the emirates that contribute study share of GDP, Dubai is playing great role in the growth of non oil sectors, especially real estate market. The impact of re al estate sector in UAE economy is high when considering to the last decade, the cities Abu Dhabi nd Dubai became business hubs in Middle East. Real estate sector is remain under draw in the current economy, contraction is evaluate as a besides drop in property prices as new supply enters to the market along with lower demand and there by widening the supply demand gap. This will increase in coming years with the completion of ongoing projects will continue to turn over down the property prices and growth prospects. Abu Dhabis current strategy for boosting the hold supply also put additional pressure on real estate market.Anyway massive investment from government for infrastructure development projects will cause demand for construction and spotting services. Along with this boosting in employment opportunities will expected to provide a base for real estate economy to grow in future. The pursuance card represents evolution of UAE Gross Domestic Product from year 2002 to 20 09. Source UAE National Bureau of statistics UAE REAL ESTATE BUSINESS CLASSIFICATIONS For providing statistics more deeply, real estate market further divided up in to mercenary and residential sectors.Commercial real estate sector refers the property which unique(predicate)ally set aside for commercial purposes like industrial use, overlord offices, farming etc. commercial property has to comply with certain standards and should be used unaccompanied for business purposes only. residential real estate involves the sales event and rental of land and houses to individuals or families for daily living. some(prenominal) types involve transactions of huge amount and so many regulations are introduced for commercial and residential segments. Commercial real estate market further divided in to office market, sell market, hotel market etc. or providing analysis in further detailed. residential real estate market cod to current world wide economic conditions and its manifestation, Dubai bought high uncertainty to the residential real estate market which drives down the prices. Residential market of Abu Dhabi and some other emirates are experiencing a shortage of supply, with insufficient homes or villas to meet requirement of current population. So sharing of villas and apartments is common here. In Abu Dhabi itself there is a shortage of 48,400 housing nits, the upcoming projects will be able to meet only around the fractional. The under supply for end users is particularly for lower and mid market brackets. The licit age of upcoming projects also targets high class investors. Residential sales prices in UAE reached its peak in 2008, at this time rent also very high. Residential rents and selling price continue to decline due to a number of factors. More new supply will be available and as rents decline, many tenants are expected to be trade up from shared accommodations into single accommodation and thereby it keeps increase in demand.Rapid economic gro wth and employment opportunities results an curious population boom, multi occupancy and sharing will of villas etc makes it realizable to meet the requirement. House prices were fallen in last quarter of 2008 and now it slowly retains an optimum pace. Economic growth, government support and mortgage lenders returning to the market etc are current driving forces of financial strength. The following graph represents the house price changes in UAE for the last three years. In the last quarter of 2010, residential price index rose slightly to 0. %, the total number of property transactions increased around 5%. Office market Currently there is a limited supply of office space in UAE, especially for multinational service sectors which require planetary standards. Still there is shortage of professionally managed office space, so office markets are operate in maximum occupancy rate and rents are relatively high when comparing to other maturation countries. When begin a office, organi zations will consider many concerns like road and transport facility, resource availability, infrastructure accessibility etc, so rents in areas within the city is very high.Medium range organization mostly favor near areas of city to get the advantage of relatively less rent. More office space will be available when completing the ongoing projects which will help to stimulate market absorption rate in light of whole tone, tenants got opportunity to occupy high prize office space at a lower cost. As a result poorer quality spaces forced to reduce their price. Large investment from government to set state owned enterprises and banks, before long most of such organization own the space rather than active in rental market.To widen the services of government agencies and enterprises new high quality office spaces should be created in various parts of the country. contradictory investment and multinational company involvement in different sectors like oil and gas, financial servic es, professional services etc largely influence the current trends in office market. According to the Global Office trade View from CB Richard Ellis (CBRE), UAE is an increasingly affordable and attractive destination for company offices, with growing stability within the emirates.The quality and standard of completed buildings and its affordable rent rate here become much more attractive. Retail market Retail market in real estate represents floor space available for alive(p) in trades direct to customers. Retail market also faces shortage of international quality projects and so availability of floor space for retailers relative to demand is less. increase spending of both UAE citizen expatriates and the existing below average per capita income provides a good atmosphere for retail market.The total retail supply in Abu Dhabi is approximately 1. 4 million square meter of GLA and it is important to annotating that most of this space is in non mall formatting, i. e. pass shops. There is significant shortage of available retail space including high end street retail at present and the existing shopping malls are currently having high occupancy rate of nearly 95%. The demand for retail market is expected to increase in coming years also, the development of more world class tourism points in UAE also support growth of retail sector.New retailers are offering new retail sales format and experience which will cause an increase in spending of money in retail market. In the growing economy of UAE, average rental rates almost unchanged in the main retail malls of Abu Dhabi emirates but continue to decline in Dubai. Hotel market Dubai is one of favorite tourist destination for people from Europe and other Asian countries. Abu Dhabi, Fujairah ad other emirates are also emerging as valuable tourism destinations in the country. Luxurious cordial reception and high grade hotels are inevitable to retain in world tourism map.Supply of new hotel facilities are less in la st few years after the recession, but it is almost meet the requirement from tourism sector. Occupancy rate has fallen and still go along to out perform when comparing to other market areas. Some tourism promotion events like Dubai obtain Festival, Abu Dhabi F1 Grand Prix, Dubai Air Show, Abu Dhabi shopping festival etc cause some seasonal demand for hotel facilities. The continued magnification of national airline Etihad and Emirates has enabled growth of hotel markets in UAE.Almost half of the total quality hotel supply is managed by international management companies like Hilton, Starwood etc. Development of hospitality sector along with strengthening of corporate market and development of leisure segment is the main accusing of UAE authority and so the upcoming projects will supply the requirements, to continue to increase hotel supply in close few years. Abu Dhabi is one of the strongest performing hotel markets in the last few years as the number of hotel visitors to the city has doubled in from 200 to 2009.In future, hotel market expects tremendous growth along with tourism sector. (Abu Dhabi real estate market forecasts, p19-35) UAE REAL ESTATE LAWS Foreign investors in UAE real estate market face some(prenominal) legal challenges both as to the nature of legal entity to use the properties as well as their ability to acquire free hold interests in real estate. UAE is the fusion of seven emirates established in 1971 formulation of UAE federal law provides legal framework for the emirates.Federal government is entrusted with the task of formulating laws concerning and regulating principal and central aspects of federation including defense, security, public health, currency etc. federal laws are formulated for regulating labor and social services, real estate and its expropriation in the public interest, agriculture and wolf wealth and so on. As per the constitutional regulation adopted by UAE nation, local governments in different emirates are authorized to regulate common matters that are not confined to the federal government.Each of the seven emirates regulates their own affaires by exploring this provision. So, in real estate sector there is no federal property law for governing foreign ownership of real estate in UAE. Each emirates has their own regulations, Dubai is the only emirate currently allow freehold of real estate properties. Federal faithfulness no(prenominal) 5 of 1985 was issued courteous Transactions virtue and Federal truth none 11 of 1992 was issued urbane Procedures Law are the important real estate laws in UAE. Apart from this all the emirates issues their own amendments to nurture investors, buyers etc. he civil transaction law later amended by Federal Law No. 1 of 1987 which exclude commercial transactions from being governed by and under the civil transaction law. different articles of civil transaction law like Article 870, 871, 881 etc ensure the security and reliability of different rea l estate transactions among persons and banks. As per Civil Procedure code, agreements must be evidenced in writing and must be clearly defined. Different emirates made their own amendments for better regulation by using their provision for freely constitute laws.Law No. 7 of 2006 concerning real property registration in the emirate of Dubai is an example of such amendment. Law No. 7 of 1997 concerns the charges for registration of lands, local decree of 1960 concerns the formation of lands committee. division 2006 amendment define real estate register and different types of rights to hold real estate properties based on clearly defined agreements. As per Article 4, real estate property shall be restricted to UAE and GCC nationals, unfastened Rulers approval and in specific areas, non nationals grand for freehold ownership.Some other important amendments in Dubai include Law No. 9 of 2009, Law No. 13 of 2008 etc. In 2010, a number of significant changes implemented in UAE real est ate laws, to encourage investments and to face challenges from global economic crisis. come tolord and tenant law provide to ensure tenants automatic right for renewal and security of tenure which has existed for the first quintuplet years of occupation for both commercial and residential clients. The 5% annual rent increase cap has also been retained in Abu Dhabi to provide middle income affordable housing.Special consideration and laws were implemented in new investment areas like free zones to protect investors rights. Abu Dhabi also formulates framework and general laws for property rights within Abu Dhabi emirates to register property legally. CHALLENGES IN UAE REAL ESTATE SECTOR Rising cost of cement and naked as a jaybird materials is a real challenge in real estate sector. Production of cement in UAE is not enough for satisfy the demand cement comes from outside the country also. The stabilized market and a looming price control intervention by authorities imply that pric e may not be high always.Real estate and construction industries are facing shortage of skilled labors for construction site. Due to low honorarium and heavy duty, many foreign labors leave from here, workforce requirement is high when considering the demand. Delays and cancellations of projects in UAE is a major supply side issue in UAE. Due to global economic crisis, many projects are scratch due to investors feeling of insecurity in real estate business. Actually real estate markets are driven by supply, demand and finance. mortgage rate is relatively high in UAE when comparing to international standards, especially in Dubai.In many cases, this is beyond affordability. UAE authorities are continuously monitoring to victorious deals with these supply issues. (UAE real estate, Reaching New Heights- KFH research P13-14) SWOT ANALYSIS OF UAE REAL ESTATE SECTOR Source KFH research FUTURE GROWTH INFERENCES AND CRITICAL CATALYSTS In general, UAE is undersupplied in relation to the demand for residential, office and retail properties, hotel market almost balance the requirement. Due to high occupancy rate in cities like Abu Dhabi, rental and sales price still higher(prenominal) than the regional market.This has a negative impact on economy there is significant loss of authorization employment, spending and investment. The real estate industry has act to ongoing shortage of quality products, new projects will solve the shortage in coming years. old age fro 2003 to 2008 is the peak of business, economic crisis caused a down turn in 2009 due to economic crisis. Due to this, major projects are cancelled or slow up, now the country retains its financial strength, significant level of new supply expected to enter in market within two years.Retail and hotel market expected to move into supernumerary situation within two years. The precious growth of UAE real estate sector is enhanced by a number of activities and improvements in basic infrastructure. Many facto rs will be catalytic force for commercial and residential real estate markets in future. Some of them are Growing employment and population base Due to the success of initiative from UAE authorities to increase Emirati population and to attract expatriates, UAE is now having relatively good labor pool and employment opportunities.Increase in population contributes to the development of economy and promote continuous growth of real estate demand. Promoting company start-up and growth UAE government is taking new steps to develop new industries and work culture by introducing free zones and basic infrastructures. Achieving the rapid economic growth also requires impregnable developments in to the regulatory framework. Regulatory reform Emirates like Abu Dhabi, Sharjah, Ras- Al-Khaimah etc. still needs to establish a business and legal environment comparable to other developed countries.Transparent regulatory mechanism only can attract investors, especially in real estate sector where a huge amount of investment is required. Transparency In this era of globalization, markets to be more open, transparency of different markets has emerged as a great(p) concern for investors, occupiers and other real estate stakeholders. marketing benefits from improved transparency tends to be those in which conducting business is easier. UAE need to improve transparency and openness further to keep inline with leading international markets.Land Registry Land and property registry system is one of the key element that define transparent real estate market, improving operation of the system by providing public accessibility, improvements will stimulate the additional demand for real estate in the country. (Abu Dhabi real estate market forecasts, p36-37) ? CONCLUSION Real estate refers to residential new homes and existing ones, commercial shopping centers and offices, industrial manufacturing buildings and properties, rudimentary lands and farms etc. Real estate investments are largely influenced by the condition of the immediate area where the property is located.In UAE real estate sector was not much developed as a big business sector till early 90s. Revenue from oil was the main source of economic growth in early stage of the country authoritys dedication enabled them to establish an industry based economy here which helped a lot to develop a real estate market in UAE. international companies found UAE as one of the important business location they began their franchisees which improve opportunities in residential and commercial real estate market. Real estate market is distinct from other competitive markets, due to the differentiable characteristics and influencing factors.Current supply and demand for real estate properties largely influence the rental and selling price. Residential, office and retail real estate properties still face shortage especially in cities, hotel market currently balance the demand and supply. Elasticity measures the respons iveness of quantity demanded of property goods against change in its price. This is influenced by customers income, availability of alternatives, necessity for the property and so on. Real estate business sector has a remarkable contribution towards UAE economy, nearly 8% of the GDP of the nation is from real estate sector.Because of the global economic crisis, real estate sector also under pressure when it badly affect on business and employment opportunities. Many huge projects were cancelled or delayed due to insecurity feel from investors at the time of recession. But UAE has almost recovered from the impact and now real estate market also expects favorable in coming years. Factors like growing employment and population base, promoting company start-up and growth, regulatory reform, transparency etc will act as catalysts for future growth of real estate sector. ? 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