Call for coordinated plan to kick-start property sales

COORDINATED APPROACH: The real estate sector in the UAE, including government departments, must work together to kick-start the Emirate's property industry. (Getty Images)

A UAE-based real estate expert has called on industry professionals, including government agencies such as RERA, to develop a coordinated set of measures to kick-start the UAE property market.

In comments made on Saturday Mohammed Nimer, CEO of mid market property development company MAG Group Properties, called on developers, government agencies, investors, banks, insurance companies and brokers to stop working to their own agendas, and to join forces to get property sales moving again.

“Each interest group is having a modicum of success, but it would be far more effective if all interested sectors worked together,” said Nimer, whose company is involved in AED3bn ($816m) worth of projects in the UAE.
 
“From investment and development right through to the hand over, we could manage the entire spectrum of the property cycle and speak with one voice,” he added.

Recent moves such as HSBC bank raising its loan-to-value ratio to between 70 and 75 percent, was welcomed by NImer, as were the decisions by other banks and developers to tailor repayment packages for buyers experiencing financial difficulties.

However these were isolated acts, which alone would have limited impact, Nimer said.

“In isolation these unilateral measures by individual organisations will have limited effect. For example, if a buyer can’t manage a 25 percent deposit the sale falls through. Easy payment terms are good news for existing investors, but they don’t address new sales,” he said.    

He also praised Dubai Government’s moves to extend the work visa expiry period so that redundant expatriates had more time to find work and so remain in the emirate.

There was also a role for the insurance sector to initiate redundancy/mortgage protection policies to help allay fears o falling into mortgage arrears with unforeseen job loss, he added.

“These initiatives all contribute positively in some way to encouraging property sales, but if all these effort could be coordinated and put into one package, the effect could be much more effective,” he said.

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READERS' COMMENTS

"Buy" property?
Posted by Yusuf on Monday 27 April 2009 at 09:08 UAE time


Listen, how many people here actually buy property to stay here? Most people are investors. They just wanted to make money from the property "boom". I doubt this investment attitude will ever change in this country as long as there are so many visa restrictions, which show no signs of being relaxed.

They're really not seeing the picture here!!
Posted by Kareem, Dubai on Thursday 23 April 2009 at 14:40 UAE time

I completely agree with Paul and Trojan but I also have something to add; the government needs to instill confidence back into the market. This will never be done with the laws they are passing/planning on passing (ammendment to law 13 for one) nowadays. Add to that that prices are overblown (come on, if I can buy a condo in Miami for much less than what I'd pay for a 3BR apartment here then they seriously need to reconsider their market positioning), value for money is almost non existent .
I doubt that anyone here now (or overseas for that matter) would consider buying in Dubai now after all the hoopla thats been going on

Job Creation
Posted by Runku, Dubai, UAE on Thursday 23 April 2009 at 11:26 UAE time


Property development is not the soluation. Property development is required only when there is a demand. This demand will get generated only when preople are employed and secured. The Govt should focus more on job creation through: Creating manufacturing units, Trading, Shipping, Tourism, Infracture development (not only housing): Roads, Rails, etc.

plan to kick start property sales
Posted by jv, dubai, uae on Monday 13 April 2009 at 15:30 UAE time

They still don't get it, do they. If I have to leave the country as soon as I loose my job- why would I buy? My residency visa should enable me to work anywhere. If I had a permanent visa, I would ride out the difficult times and look for another job, not max out my credit card, dump my vehicle and run.

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