Latest Landmark Advisory Sales Guide: Property Prices Remain Stable in Capital as Buyers Await Completion of New Developments

Dubai, United Arab Emirates - December 29^th, 2009:

Landmark Advisory, one of the leading real estate consultancy companies in the Middle East, today released its December sales guide for Abu Dhabi. The report shows that property prices in the capital remain stable as sellers and buyers in the market eagerly wait for clear signals from the development community indicating precise project delivery dates.

October and November were two of the most active sales months of 2009 for the capital, with demand focused on close-to-completion developments such as Marina Square, Al Reef Villas, Sky Tower and Al Bandar. However, prices have not measurably appreciated as buyers continue to look for distressed sales.

Discussing the findings, Ms. Jesse Downs, Director of Research & Advisory Services, Landmark Advisory, said: “Despite an increase in sales activity in the third quarter, demand levels since mid November have waned, leading to limited sales volumes in December.”

The sales guide shows that transactional prices have remained stable throughout Q409 and are not expected to increase until property is handed over in 2010. “Prices are only likely to increase for developments that are close to completion during 2010,” explained Ms. Downs. “As these developments get closer to completion, transaction volumes are expected to increase, which could gradually lead to marginal price increases.”

In terms of property listings, prices and inventory remained stable with asked prices registering only a marginal increase of 5-6%. The exception is Al Bandar which has seen average asked prices decrease 9% since September 2009 to AED 1,500 per square foot. “This indicates that Al Bandar owners are now adjusting their price expectations,” explained Ms. Downs.

“By reducing the price, Al Bandar is likely to start attracting more buyers that were until now focused on less expensive developments in Marina Square, which are currently transacting in the secondary market at AED 1,250-1,300 per square foot,” continued Ms. Downs.

“Our findings show that while buyers through Q309 were still primarily end-users, this demand segment is now waiting for clear signals of progress within these nearly completed developments before engaging in any activity. Only a small number of investors are currently active in the market. The postponement of delivery dates, most notably for Al Bandar (originally scheduled in Q409) and Marina Square (originally scheduled in Q409) may be further restricting demand,” Ms. Downs concluded.

Landmark Advisory’s December sales map for Abu Dhabi is now available for download at http://www.landmark-advisory.com. To acquire the sales and leasing guide for Dubai, or for further information, please visit http://www.landmark-advisory.com, or follow Landmark on twitter @LandmarkDubai. Landmark Advisory welcomes your opinions about regional real estate and has recently launched the Landmark Connect online research panel. To share your views, visit http://www.landmark-advisory.com/index.php?landmark-connect.

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About Landmark Advisory

Landmark Advisory was originally established in September 2006, under the name of Landmark Consulting Associates, with a mission to provide superior generalist advisory services in the areas of development and planning. In April 2008, Landmark Advisory was established and has brought with it the experience and network of Landmark Consulting Associate’s years of existence.

Jointly owned by a dynamic group of partners, Landmark Advisory’s founding members are the same group of professionals that founded Landmark Properties L.L.C, one of Dubai’s leading real estate brokerage. Landmark Advisory’s link into Landmark Properties, offers the group a unique position to closely study the real estate market, providing unparalleled access and perspective of the rapidly changing and expanding MENA market.

Our network of professionals dedicate themselves to thoroughly collecting and analysing information to illustrate opportunities that exist in this fast-paced industry. Furthermore, our specialised knowledge and experience within the MENA region, gives Landmark Advisory the confidence to accurately advise our clients around the world in making well-informed and intelligent real estate decisions.

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