Transparency

Just two months into the first quarter of 2009 and confusion remains on numerous issues surrounding Dubai's real estate sector.

Some of the broader but vital questions being asked are ‘if' and ‘how' developers, construction companies, brokers through to end-users can survive this global economic storm. There are a million opinions on how to kick-start what was a scorching market just a few months ago....and here's another one.

If there was ever a time for real transparency, it is now. Realistic, understandable, clear objectives and laws are what everyone in this industry and related industries need. Such measures will surely be the first step towards securing a solid foundation for when the storm comes to pass.

Transparent measures need to be implemented across several different areas. Developers need to step forward and be open about what is really happening with projects - whether the news is good or bad. This will ensure local and international investors regain confidence and trust and potentially it will put an abrupt halt to the numerous rumors that circulate when investors, borrowers, consumers and the media are unsure of the truth.

Banks need to start lending again - sensible lending to those wanting to gain a foothold in what is now a buyer's market but more importantly banks need to show borrowers clear guidelines on standard amounts they will lend and to whom.

The recent Rental Index issued by Sheikh Mohammed Bin Rashid Al Maktoum, Dubai's Ruler is a good step as it at least informs landlords/tenants of what they ‘must do.' Wishy-washy concepts and warm, fuzzy statements from business leaders are a thing of the past. In those days, everyone bought into it. Not any more.

February issue of Arabian Property English brings you an in-depth special report on the issues surrounding residential, commercial and holiday rents. Our February cover story focuses on the Middle East construction industry and how Dubai faces fierce competition from neighbouring emerging markets and foreign firms.

The storm will eventually pass and the market will correct itself. In the meantime, real estate companies need to lead the way in forming and establishing transparent operations which will quicken the pace of recovery.

Kim Latham is the editor of Arabian Property English.

RELATED LINK: Residential, commercial, holiday rents to drop in 09

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