DUBAI – Sentiment in the UAE real estate investment market improved during the second quarter of 2012, boosted by the rising availability of funds, the Royal Institution of Chartered Surveyors (RICS) said in its latest Global Commercial Property Survey. Purchaser enquiries rose for the second consecutive quarter and transactions are forecast to rise in the coming months.



Expectations for capital values in the UAE for the third quarter show a modest increase for the first time since 2008, it added.



The survey said 16 percent more respondents indicated that money available for investment in real estate increased during the second quarter of the year.



Occupier demand, led by an active retail sector, continued its rise, though at a slightly slower pace.



However it added that new supply coming on to the office market, added to existing stocks, meant that despite the recovery in demand, oversupply continued to impact upon rental expectations.



Simon Rubinsohn, RICS chief economist, said: "It is encouraging that there are now some tentative signs of a turn in the real estate market in the UAE. – Agencies