With an economic recovery now widely predicted, who are the winners and losers of the past 12 months?

After a hellish 12 months, investors are more optimistic about the outlook for real estate markets across the region than they were six months ago, according to the results of a recent Jones Lang LaSalle survey into market confidence. The report's authors believe that there has been a significant shift of sentiment, from denial of the extent of the crisis to a more realistic acknowledgement of what has been termed "the new normal".

It's real progress given the cynicism and negativity that permeated the sector as recently as just a few months ago. But how are individual economies expected to fare with the much-anticipated upswing?

The good news for Dubai is that expectations for economic recovery in the GCC are, on the whole, pretty high; the not-so-good news is that its local rivals may have edged ahead in the race for overseas investment dollars. While it is still widely regarded as the regional leader in terms of its infrastructure and nation-building achievements, concerns remain regarding Dubai's short-term liquidity and supply-demand dynamics. A return to 2007 pricing coupled with the successful overhaul of the regulatory environment could see it solidify its position as the leading regional and international destination for investment, but much remains to be done in terms of rebuilding investor confidence in a fragile economy before the full impact of the economic recovery will be felt.

There is better news for the other GCC countries, however. Abu Dhabi, Saudi Arabia and Qatar - unlike Dubai, all energy-rich economies - are expected to recover quickest and experience the greatest increase in pricing and performance during the next 12 months. Abu Dhabi is considered by investors to have the greater economic strength and future potential, along with a reasonably strong and transparent regulatory framework, and Qatar and Saudi Arabia are not far behind.

"Although they recognise that not all markets have yet bottomed, there is a real sense among investors that the worst is generally behind us," confirms Ian Ohan, Head of MENA Investment Transactions at Jones Lang LaSalle.

What is more, investors have a clear expectation of what is required from governments to support the recovery: a framework to rectify and solve real estate issues created by the excesses of the past, an improvement in the regulatory environment, strong economic stimulus, market transparency going forward and a commitment to capitalise on the momentum and achievements of the past decade.

The message is clear: those governments that improve the quality of their regulatory environment and increase market transparency stand the greatest chance of attracting greater levels of investment. And that, at the end of the day, will be key to any kind of recovery effort.