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.”

Bahrain – The Revived “Treasure of Middle East”

In today’s intensely competitive global markets, Quality is everything. But achieving quality can cost us dearly especially during a period of recession. The global economic recession began as an upset and managed to drive every country’s government and people reeling. Today, the world is looking at the blow as a jolt into new openings, while recovering from it.

Bahrain’s strategic location in the Persian Gulf made it an important economic, political and trading center. It was occupied and ruled by countless dynasties such as the Assyrians, Sumerians, Babylonians, Portuguese, Persians and the Arabs. Clearly, Bahrain had already been marked as a business hub long before the rest of the Middle East. Over the last few decades other countries in the Middle East have successfully came out as major trading and management hubs. Countries like Dubai and Qatar have spent heavily in promoting themselves as the best places for production.

Morison Menon has been caught up in the superb growth of Dubai and the rest of the UAE through our business consulting services. In February 2009, we turned our minds to Bahrain with the sole objective of helping the rest of the world revive this Pearl of the Middle East as the perfect destination for running businesses.

Bahrain has now become a hot-spot for investors, having been voted by Forbes as the best country for business in the Middle East. One of the key reasons for Bahrain’s recognition in the global markets is its standing as a free economy. In a free market, businesses can function with minimum red tapism and foreign ownership limits while enjoying the protection of an established rule of law.

Countries in North Africa, Europe and Asia can easily access Bahrain through various transport modes. This makes it the ideal location for organizations looking to establish regional businesses or headquarters. Bahrain is placed at the heart of the Middle East. Its close immediacy to important markets such as Saudi Arabia and Qatar makes it a leading business location.

Bahrain offers numerous benefits- tax-free business opportunities, excellent infrastructure, a cosmopolitan and liberal culture, a strategic location, and fabulous amenities – all at minor costs comparative to other Gulf countries. Bahrain has become the hot-spot for companies from across the world. We can help you benefit from this success with our business consulting and setting-up services. To know more, visit http://www.morisonmenon.com