The survey of some of the leading real estate developers in Dubai and Abu Dhabi, conducted by this newspaper within the past week, reveals that despite the fact that the sector witnessed considerable decline in asset valuations since the beginning of this year, none of the developers polled expect returns in the second half of 2009 to be worse than the first half. This indicates that the worse may be over for the country's property market that has been so far affected by the global crisis.

While 83 per cent of the CEOs believe that returns will be better in the second half of 2009, as compared with H1, the remaining 17 per cent expect H2 returns to be at the same level as H1.

On outlook, 66 per cent of the CEOs polled, however, are neutral, with an equal number (17 per cent each) split between bullish and bearish about prospects for the rest of the year.

Furthermore, 83 per cent of CEOs polled expect property valuations to become more stringent in the future, thus leading to a decline in speculation. The issue of real estate-linked residency visas is also very important to developers in the country, and an equal number of CEOs (83 per cent) agree that the issue of residency needs to be revised.

Most CEOs, however, do not see the performance of the stock markets as a barometer of the real estate sector's health, with 66 per cent maintaining that improved stock market performance will have only marginal impact on the sector.