Skip to content

Call for co-ordinated strategy to lift Gulf countries out of the global property crisis

Dubai's Real Estate Regulatory Authority could lead the way and help draw up measures for the future, said Mohammed Nimer, CEO of MAG Group Properties.

'Each interest group is having a modicum of success, but it would be far more effective if all interested sectors worked together,' he declared.

'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 within the industry have been widely welcomed but there is no co-ordinated approach to encouraging property investors back.

Banks have been offering better terms and conditions on loans, developers are offering more generous payment packages but such 'isolated' acts can only have a 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% deposit the sale falls through. Easy payment terms are good news for existing investors, but they don't address new sales,' he explained.

He praised the 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 as an indication of what can be done at a governmental level.

He also believes that there is a role for the insurance sector to initiate redundancy/mortgage protection policies to help allay fears of falling into mortgage arrears with unforeseen job loss.

'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.