Around 74% of investment professionals expect the UAE’s residential and commercial real estate market to either stay flat or deteriorate over the next 12 months, Invest-Gate reports.

Forty-five percent of members believe that GCC’s real estate market is mature enough for real estate investment trusts (REITS) to flourish, yet another 43% believe the contrary, according to a survey released by CFA Society Emirates.

The biggest challenges for growth of REITs in the Middle East are investor sentiment and lack of understanding, along with a weak regulatory environment.

The majority of property investors in the poll expect returns from an REIT portfolio higher than cash equivalents and bonds. However, they add that they reckon the returns from REITs would be lower than stocks, private equity, and real estate.