Realty Market – a Test out for Certainty

Middle East Realty market, especially in Dubai has seen booming at an amazing pace during last six years, with massive and iconic project declarations every day from shareholders across the GCC and the UAE. Newspapers and magazines speckled glowing reports on the thriving industry while developers hang down on delivery dates of excessive lifestyles.

The UAE will be shocked by the global financial slowdown, mostly from markets that used to be very popular for acquiring real estate as savings like India, UK and Germany. Entrepreneurs are exiting property reserves sending prices down for the first time since the boom started in 2002. An alteration is a blessing in mask as the market was overheated. The Government had set up a counseling committee to balance delivery with demand, a hint that the Government might be in view of slowing future projects to endorse the market with a soft landing.

One of the key factors causing buyers to re-evaluate real estate assortment is the issue of construction delays. Delays in receiving the land ready after infrastructure done by the master developer, delay in giving the contract all adds to the delay in the project getting started. The land tender delay from the master developer to the shareholder is quite common and causes the entire chain of problems. Such accusations and publicity clearly does nothing to support a safe and stable atmosphere for investors. The drive in putting transparency, regulations and accountability is fantastic and the fact that Dubai is looking at its own establishment first is great.

Real Estate Regulatory Authority-RERA was formed after the Realty market in Dubai had arrived at a particular stage. The Government wants to make sure that the market becomes steady and it needs to weed out people who obviously sell things which are non-existent or have false objective of completion dates. Realty prices are witnessing a huge alteration with speculative prices rolling down to realistic figures. This is a healthy drift which enables more end-users to enter this Realty market.

The future of Dubai, UAE and the GCC Realty Market will be more thriving and solid than in preceding years, due to the lessons studied during the fiscal crash. Enforcements of new rules, regulations and strict execution uniformly, RERA recognized Property Price Indexing (PPI), regular auditing, more transparency, implementation of financial reporting standard, dissemination of information and continuous caution could save the UAE and regional economies from such a condition in the coming years.

The GCC and the UAE are well directed economies with huge build up resources and are well-placed to cushion the impact of an exterior shock of this nature. Dubai’s property market will draw long-term investors in the coming years. His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Ruler of Dubai and Prime Minister and Vice President of the UAE said, “Dubai’s direction is straight and forward, and we will continue our growth story.”