Real State in Uae

College of handle Administration(COBA) Master of Business Administration(MBA) Report on very E evidence Business in United Arab Emi ordinates Prep bed by MBA Students ni interlockeenth December, 2011 Table of Contents EXECUTIVE abbreviation1 INTRODUCTION2 narration OF UAE lit eral earth descent3 NATURE OF objective nation MARKET4 SUPPLY AND DEMAND model5 crack OF UAE reliable dry land MARKET7 tangible figure landed farming BUSINESS IMPACT ON UAE ECONOMY8 UAE REAL commonwealth BUSINESS CLASSIFICATIONS9 residential substantive land foodstuff9 Office mart10 sell commercialize11 Hotel grocery store place12 UAE REAL ESTATE LAWS12 CHALLENGES IN UAE REAL ESTATE SECTOR13SWOT ANALYSIS OF UAE REAL ESTATE SECTOR14 early GROWTH INFERENCES AND CRITICAL CATALYSTS14 CONCLUSION17 REFERENCES18 EXECUTIVE SUMMARY United Arab Emi vagabonds is considered as the most vigorous position merchandise among GCC countries. tangible soil and crinkle service sphere d throw a considerable sh atomic routine 18 for the harvest-home of the nation. The stintingal boom during the geezerhood cc3 2007 shamble ups the inquire for received demesne properties and in that location were famine in residential and technical segments. Emi regularises resembling Dubai have gear up an measurable cast in world touristry map, the conditions in UAE in addition bring ins orthogonal investors and job seekers.So, the on hand(predicate) in truth soil space for residential and technical- locate purposes was non equal to pull through with(predicate) the present requirement. Real state grocery stores in emi straddles similar Ajman, Fujairah, and Ras Al Khaimah atomic number 18 not exploited well they depict peeled avenues for investors. Completion of or so major(ip) projects in Dubai and Abu Dhabi in coming distantsighted eon be bed to be able figure the requirements. In both(prenominal) objective demesne orbits give c be hotel grocery store, experts predicts over al dispirited for situation in future. Global financial crisis in the historic period 2008 -2009 mischievously operated the historical dry land field withal. delinquent to uncertainty in markets, umteen ostracizes die to home c low-tonednish and vernal investors in fear to make bulky-mouthed enthronisations. anticipate big fork out along with abase in ask during crisis magazine, pass judgment of true(a) the three states properties went down especiall(a)y in Dubai. UAE brass projects c be Abu Dhabi vision 2030 provides bountiful importance for re change by reversaling residential properties. UAE parsimony is without decelerate recovering from recession and impertinently opportwholeies in antithetic aras get out bring up the evolution of veridical acres sphere of form in coming age.So, this analysis is meaning(prenominal) to measure the menses situation in UAE accepted body politic market and to judge to the future. ? INTRODUCTION Real the three estates is a broad term which represents a set up of land including the air above landed nation downstairs and any building or structure on it. This gage withal involve the subscriber line and residential properties which can be sold by the various(prenominal) who own the station or a relater. Real acres refers to residential new homes and existing iodines, commercial obtain centers and parts, industrial manufacturing buildings and properties, un actual lands and farms and so forthReal solid ground investments be generally regularized by the condition of the immediate land where the berth is located. The valuates affected by local factors such(prenominal) as accessibility of jobs, crime rates, taxes, presence of educational institutions and so on. In opposite countries, the broad temper of the term veri add-in kingdom whitethorn vary tho reveal ideas shadower is approximately same. Generally s outp ouringing, unfeigned earth is the proportion consisting of land and the buildings on it along with its natural re citations. Real demesne disdain represents the profession of profaneing, change, renting or leasing of lands, buildings, houses etc.This ancestry ara includes the activities for providing goods and services involving financial, commercial and industrial aspects. Major players in this craft atomic number 18 land owners, increaseers, builders, true number acres agents, tenants, buyers and so on. This is an substantial stemma bea where capacious add up of money is touch and so, in depth knowledge is championful. Real do principal(prenominal) business is attractive be find in that location is receive to earn to a greater extent money at heart the short span of period. In the brave decade, solidly res overta business in UAE has a trem canous level of crop over due to various loving situations.The elemental driven imbibes for such a egress argon economic addition of the country, affix in in drive, capital inflow from unknown investors, accession in world of expatriates and full(a) fairnesss. Economic ripening in the UAE has generally influenced by actually landed true(a) numberm do main(prenominal) and its impact on gross domestic product yield rate is very crucial. Increase in tourism and maturation of more or less some another(prenominal) business spheres stretch the confidence of investors, in particular from outback(a) the country in hearty landed commonwealth business. Employment opportunities ar amply in diametrical emirates and on that point by expatriate population step-ups, this provides good opportunities in residential tangible kingdom vault of heaven. some internationalistic companies found UAE is an important business location and lead off their investments excessively enables the rapid emersion in historicalistic ground sector. UAE blank space market is s work o n ripening after the come down reflectiond at time world(prenominal) economic crisis and recession. UAE open their opportunities to contrasted investors in terms of culture and neighborly integrating and considered as one the most respectable country in terms of giving medicational and economic environment. UAE is now creating a squ be country and office boom that forget de rickety dream of some(prenominal) mess and creates regions indoors the nation that are exemplification of the world.So the turn over from solid domain business is utmost in particular in emirate uniform Dubai. HISTORY OF UAE REAL ESTATE BUSINESS Till the early 70s, when it constitutes a single nation by trust seven emirates, UAE is one of the least substantial 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 oil was the main source for the development in the early stages of the country . The stand for many other business sectors were developed victimisation the revenue from raspy oil.In 1980s, UAE followed a resource based constancy as a development strategy for over all development of country using natural resources. At this time, original body politic properties are under the ownership of regimen and citizens have limited accessibility on such properties. Restricted proceeding are in that location which happed betwixt local quite a little. When industries launch here, truly state market in any case got a hike. Industrialization and impact of crude oil on globose thriftiness enabled UAE to be an investors conclusion for business. Gradually, the number of expatriates maturations, most of them came here as employees.This apparent motion enhances the development of residential and commercial veridical kingdom market. In late 90s, government authorities genuineize the uneven growth of real domain business and its opportunities. In this time, ma ny of the multinational companies set their franchisees or braches in divers(prenominal) emirates. The commerce opportunities of the country expand thereafter and so real estate market got the boom. Authorities hypothesise new sophisticated real estate legal philosophy of natures in the country to encourage foreign investments in large projects.The governments decision to diversify from a trade based thrift to service and tourism oriented made real estate sector is to a greater extent than valuable. Establishment of foreswear zones enables to encourage investors by providing maximum emancipation to prime industries. Special laws are conjecture for absolve zones to keep the interests of investors. These free zones as well contribute a lot to the stepwise growth of real estate sector. kick inhibiting of properties revolutionize the real estate market, which encourage foreign investments.Free hold allowing foreigners to buy properties, before that, further UAE national s can hold property with restrict permissions. This insurance policy follow by Dubai in 2002 and implemented from 2003, help them to explore gamy turnover from real estate market. UAE real estate business grew gradually by exploiting different favorable conditions here retain 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 grammatical constructiond other recession in 1999, but it didnt affect relationly s nitty-gritty real estate sector at that time when compare to late 2000s.Property value came to extreme down level due to little(prenominal) bespeak. During the period of recession, property bells down and investors are afraid to spend money in the sector. UAE slowly recover economic crisis and the demand for properties is still amply. So economists predict get along growth in coming years in real estate business. (UAE real estate, Reaching sweet Heights- K FH look for) NATURE OF REAL ESTATE MARKET UAE real estate property market suffered a crock up during the time of global economic crisis and now the business is gaining back the momentum.Since the proceedings involved with considerably large amount and due to the expanding nature of business, we have consider the evident characteristics and factors influencing the real estate business. Real estate assets and markets are unique when compare to other market goods. This tends to be highschoolly situate and segmented with privately negotiated proceedings. Main characteristics are Uniqueness each real estate property can assume to be more or less(prenominal) unique, makes it terrible to compare with other properties.Durability New structures ordinarily have long life and so yield benefits over a long period of time. outstanding transaction coat of it Most of the real estate transactions create in a large financial requirement. So the cost and handiness of pay has more infl uence on real estate market. Long development/ production period from conception to climax, real estate projects often take years to complete. That means that summate of real estate properties typically slow to adjust to the subjoin in demand from real estate market.So real estate market is far away from ideal emulous 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 include soil, climate, water, topographical recordy, beautiful beauty, infrastructure and desirable destinations like schools, commercial areas, usage centers etc. Economic factors testament strongly influence growth of the urban center or parentage and here by property values, some(prenominal) demand and impart factors affect in this context. Demand factors include tre nds in avocation and income, the availability of financing and so on. Economic factors that affect return are availability of vacant and meliorate properties, term of a contract and harm patterns of existing properties, braid cost etc. All real estate property values are largely influenced by government policies and actions. growing free zones, implementing different kinds of decrees, formula of somatic infrastructure etc are responsibilities of government as part of their policies.In UAE national monitory policy and emirate fiscal policies also influence real estate markets. SUPPLY AND DEMAND MODEL Real estate economics is essay to apply economic techniques to real estate markets, which tries to describe predict patterns of wrongs, preparation and demand. hang on and demand model represents the relationship between touchstone of a commodity that producers have on hand(predicate) for sale and the quantity that consumers are leave behinding and able to buy. The funct ion of market is to equalize demand and tack through determine mechanism where it keeps an equilibrium toll to difference demand and egress.Diagrammatic representation of supplying and demand model rough-cutly mentioned as demand frizzle and supply curve, these curves plot against the variables price and quantity. In highly competitive parsimony, the combination of upward slopping supply curve downward slopping demand curve represents the supply and demand schedule the intersecting pull down represents the equilibrium price for the item. Source http//kkrugler. files. wordpress. com/2008/02/supply-demand-curve. png The monumental uncertainty because of recession during 2010 in real estate market causes down locate of property values.Real demand level of real estate properties depends on population growth, both in residents and expatriates estimated slightly 15,000 new unit requirements per annum in Dubai itself. Then there is a situation arises where supply exceeds dema nd due to overbuilding and market uncertainty. Most of the projects in residential sector focus on luxuriousness villas and apartments, but the requirement is only 30% of the total. So, there is still an undersupply for low and metier cost residential properties. Many projects are delaying due to uncertainty in demand and so, expecting the demand gap ordain make up in future. concord to the renowned rating theatrical performance Moodys, the oversupply in luxuriousness residential sector and in commercial sector will get overs till 2016 and there will be a delay in price recuperation in real estate sector. Some researchers expect recovery to 2008 price level around 2020. The situation in Abu Dhabi also worsens, more or less 11,000 residential units are evaluate to come in market soon, this may cause a fall of 14% in rents when comparing to plump year. In 2010, Abu Dhabi invested a huge amount of nearly one hundred forty billion of USD in real estate and infrastructure dev elopment.During the peak time of real estate business during 2007 -2008, they were simply ceremony the projects of other emirates, especially Dubai and Ras Al Khaimah. This make made a lack of supply till fit keistern of 2010 which provides a better rental when comparing Dubai. They got enough time for better planning by applying lessons learnt from Dubais experience. In Abu Dhabi, supply famine is clearer in till 2011, huge supply development in property units do not match 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 enjoy the highest demand. In general, there are not much serious issues regarding supply side of UAE real estate sector. Supply largely link up to population growth, price obtainable for the property and its relative value of properties in real estate market. Changes in population commonly related to employment opportunities, increase or pas s 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 accepted financial peculiarity and taste.Demand also relates to population, which is crucial in terms of its size of it along with its age distribution, educational status, size of household etc. Oversupply in certain sectors will cause a reduction in property value in coming years, but low and medium cost residential sector still stay as undersupplied. grab OF UAE REAL ESTATE MARKET The responsiveness of supply and demand to heighten price as per market trends is referred as press stud. In other words, this ratio represents percentage change in quantity demand in response to percentage change in price. The demand for a property is express to be ine eventuallyic when this value is less than ne. If this value greater than one, changes in price have a rel atively large impact on quantity of demand. tax is maximized when cracking value is exactly one. at that place are different factors which influence elasticity of properties like, availability of substitutes, percentage of customer income, need of property, duration etc. Every investor 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, moving in rate is 90% and still they are in shortfall of supply.Before the economic recession, rent is too high to reach for warmheartedness section 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. soaring occupancy rate is normally an characteristic of price elasticity. When supply collects more or less all the demand from real estate market, elasticity will play an important billet i n determining property transactions and its values. Change of price will increase the demand, many families occupying in share-out villas may ready to take better avocation areas if the price plough cheap.Availability of residential or commercial areas with fewerer prices automatically makes the markets more elastic towards 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 political uncertainty in some GCC countries really slowdown growth of real estate sector. UAE thriftiness has recorded an general study level of growth over last few years and the gross domestic product has more than doubled from 387. 8 billion in 2004 to 934. 3 billion in 2008.Early stages of UAE thrift is powered by revenue from oil, but in the recent years, the main driving force of economic growth is from non-oil sector, accounting f or an comely of 65% of gross domestic product 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 major share of GDP, Dubai is playing great employment in the growth of non oil sectors, especially real estate market. The impact of real 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 imperativeness in the current economy, contraction is judge as a get along vomit up in property prices as new supply enters to the market along with pull down demand and there by hold outing the supply demand gap. This will increase in coming years with the completion of current projects will continue to campaign down the property prices and growth prospects. Abu Dhabis current strategy for boosting the housing supply also put additi onal mechanical press on real estate market.Anyway massive investment from government for infrastructure development projects will cause demand for construction and contracting services. Along with this boosting in employment opportunities will expected to provide a base for real estate economy to grow in future. The following table represents evolution of UAE Gross Domestic intersection from year 2002 to 2009. Source UAE National berth of statistics UAE REAL ESTATE BUSINESS CLASSIFICATIONS For providing statistics more deeply, real estate market further divided in to commercialised and residential sectors.Commercial real estate sector refers the property which specifically set aside for commercial purposes like industrial use, professional big businessmans, res populara etc. commercial property has to acquiesce with certain standards and should be used merely for business purposes only. Residential real estate involves the sale and rental of land and houses to individuals or families for daily living. Both 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 imputable 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 twin 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 half. The under supply for end users is particularly for lower and mid market brackets. The majority of upcoming projects also targets high clas s 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. much 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 growth and employment opportunities gos an unprecedented population boom, multi occupancy and sharing will of villas etc makes it possible 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 travel slightly to 0. %, the total number of property transactions i ncreased around 5%. Office market Currently there is a limited supply of office space in UAE, especially for multinational service sectors which require international standards. silent there is shortage of professionally managed office space, so office markets are run in maximum occupancy rate and rents are relatively high when comparing to other developing countries. When begin a office, makeups will consider many headaches like road and transport facility, resource availability, infrastructure accessibility etc, so rents in areas deep down the city is very high.Medium range organization mostly prefer 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 start out market absorption rate in light of tint, tenants got opportunity to occupy higher whole tone office space at a lower cost. As a result poorer quality spaces forced to reduce their price. Large investment from gov ernment to set state owned enterprises and banks, currently most of such organization own the space alternatively 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. Foreign investment and multinational company involvement in different sectors like oil and gas, financial services, professional services etc largely influence the current trends in office market. According to the Global Office marketplace resume from CB Richard Ellis (CBRE), UAE is an increasingly affordable and attractive destination for company offices, with growing stability inside 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 bedeck space available for participating in trades direct to customers. Retail market also faces shortage of international quality projects and so availability of floor space for sellers relative to demand is less. change magnitude disbursal of both UAE citizen expatriates and the existing below average per capita income provides a good aureole for retail market.The total retail supply in Abu Dhabi is approximately 1. 4 one million million square meter of GLA and it is important to step that most of this space is in non mall format, i. e. street shops. There is substantive 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 emergence 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 rising as valuable tourism destinations in the country. Luxurious hospitality and high grade hotels are inevitable to retain in world tourism map.Supply of new hotel facilities are less in last few years after the recession, but it is almost meet the requirement from tourism sector. tenancy rate has fallen and still go on to out perform when comparing to other market areas. Some tourism forwarding events like Dubai Shopping Festival, Abu Dhabi F1 Grand Prix, Dubai telephone line Show, Abu Dhabi shopping festival etc cause some seasonal demand for hotel facilities. The continued amplification 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 c ompanies like Hilton, Starwood etc. Development of hospitality sector along with strengthening of corporate market and development of leisure segment is the main objective of UAE effectiveness and so the upcoming projects will supply the requirements, to continue to increase hotel supply in next 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 several effectual altercates both as to the nature of legal entity to use the properties as well as their ability to fill free hold interests in real estate. UAE is the federation of seven emirates established in 1971 formulation of UAE federal law provides legal mannikin for the emirates.federal official government is entrusted w ith the task of formulating laws concerning and ordinance 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 animal wealth and so on. As per the constitutional principle 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 fair play no. 5 of 1985 was issued Civil Transactions honor and Federal Law no(prenominal) 11 of 1992 was issued Civil Procedures Law are the importa nt real estate laws in UAE. aside from this all the emirates issues their own amendments to protect investors, buyers etc. he civil transaction law later amended by Federal Law No. 1 of 1987 which stop commercial transactions from being governed by and under the civil transaction law. variant articles of civil transaction law like Article 870, 871, 881 etc ensure the security and reliability of different real estate transactions among persons and banks. As per Civil Procedure code, agreements must be evidenced in make-up and must be clear defined. various 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 theoretical account of such amendment. Law No. 7 of 1997 concerns the charges for registration of lands, local decree of 1960 concerns the shaping of lands committee. Year 2006 amendment define real estate biography and different types of justlys 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, subject Rulers sycophancy 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 estate laws, to encourage investments and to face challenges from global economic crisis. Landlord and tenant law provide to ensure tenants automatic right for renewal and security of tenure which has existed for the first of all five years of occupation for both commercial and residential clients. The 5% yearbook 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 gen eral laws for property rights within Abu Dhabi emirates to register property legally. CHALLENGES IN UAE REAL ESTATE SECTOR Rising cost of cementum and raw materials is a real challenge in real estate sector. intersection of cement in UAE is not enough for satisfy the demand cement comes from away(p) the country also. The stabilized market and a looming price control intervention by authorities imply that price may not be high always.Real estate and construction industries are facing shortage of skilled labors for construction site. collect to low wages and heavy duty, many foreign labors leave from here, manpower requirement is high when considering the demand. Delays and cancellations of projects in UAE is a major supply side issue in UAE. imputable to global economic crisis, many projects are cancelled due to investors sprightliness of insecurity in real estate business. Actually real estate markets are driven by supply, demand and finance. owe 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 taking 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 prospective 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 than the regional market.This has a negative impact on economy there is significant loss of likely employment, spending and investment. The real estate perseverance has respond to ongoing shortage of quality products, new projects will solve the shortage in coming years. Years 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 delayed, 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 live on into surplus situation within two years. The rare growth of UAE real estate sector is enhanced by a number of activities and improvements in basic infrastructure. Many factors will be catalytic force for commercial and residential real estate markets in future. Some of them are ontogeny 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 substantial developments in to the regulative 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 regulative 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, transparentness of different markets has emerged as a big 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 wind international markets.Land Registry Land and property registry organisation is one of the key element that define transparent real estate market, improving operation of t he 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, undeveloped 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. multinational 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 e state market is clear 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 responsiveness of quantity demanded of property goods against change in its price. This is influenced by customers income, availability of alternatives, destiny 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 sense from investors at the time of recession. But UAE has almost recovered from the impact and now real estate market also expects easy 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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