The Met Department forecasts generally fair weather, with partly cloudy conditions at times
With the real estate sector facing a sudden slump in the backdrop of a sweeping global financial turmoil, it is imperative that developers as well as authorities should take a series of measures to restore investor confidence, analysts said.
A leading banker, who wanted to remain unidentified, said a possible initiative from the government side that could restore confidence and help galvanise the real estate sector is to reconsider the provision of residence visa facility for buyers of free-hold residential units.
“In fact, an impression created by some developers during the beginning of the recent property boom cycle that all free-hold buyers would be granted residential status had been driving the market at a phenomenal pace of growth. However, a few months ago when authorities clarified that buyers of free-hold property were not entitled for residential visa status, the market started to get a jolt as several international investors pulled out of the market.”
He said although a series of legalisations including the escrow account, and rule regulating the interim real estate register and mortgages by Dubai Real Estate Regulatory Authority helped boost investors’ trust, there is a need for more proactive measures to revitalise the sector.
Dr Ram Buxani, founder-chairman of Overseas Indians Economic Forum, said those who bought multiple of units to take advantage of lucrative earning opportunities should be accorded “an affordable exist route so that they do not resort to distress sales, delaying further the recovery of property market. The projects which have not taken off or just started must be put on hold and impatient and incapable investors should be allowed a convenient exit.”
He said the sudden demand slump in the market and credit squeeze by banks have caught such investors unawares. “Faced with a Catch-22 situation, they are likely to default or resort to distress sales that may aggravate the resulting in longer delays for the market to revive. These individuals need to be addressed differently than bulk corporate and rich investors.”
Dr Buxani said individual investors, who account for 30 per cent of property buyers, had played a significant and positive role in propelling the property sector to the current level. “During the boom time they too have benefited along with developers, who, in some cases, were hiking their prices even two to three times a day.”
“Another area to be looked into is the penalty clause which is prohibitive at the current 25 per cent. This should be brought down to a reasonable level of below five per cent for those who want to exit. In case, cash refunds are not possible, even some kind of bonds that can be redeemed in 3-4 years can be a good option. I am sure many banks will come forward to discount such instrument and provide cash to the holder,” he said.
· issacjohn@khaleejtimes.com
The Met Department forecasts generally fair weather, with partly cloudy conditions at times
Studies indicate that approximately 28.2% of schoolgoing children and 34.7% of adolescents in the UAE are classified as overweight or obese
The consistent rise in rentals over the past three years has boosted property owners’ income
The athlete's proactive approach includes a balanced diet and carefully regulating his insulin pump to prevent drops in blood sugar during training
Some say the congestion starts as early as 6.30am and lasts until late morning
Passengers booked on these services are being assisted with travel arrangements, the airline said
Spot gold prices hit record high of $2,635.29/oz
UniCredit CEO Orcel aims to build Europe's biggest bank