DUBAI, Tuesday 9 November 2010 (Bernama) -- A holistic and coordinated approach is needed to enhance the opportunity for Dubai's real estate market recovery, according to a report.
"A quick fix is not likely to succeed and a targeted group of stimuli is required while a coordinated medium to long-term plan should be implemented across the market," leading United Arab Emirates' law firm, Hadef & Partners said in its report on the legal state of the real estate market in this Gulf emirate.
These were some of the key themes emerging from a survey conducted by the firm which had identified actions that could be considered to address key issues with the aim of assisting the market's recovery.
The report noted that many respondents felt the current laws and regulations were developer-friendly, and that increased awareness of the needs of demand-generating participants, such as investors, banks and other institutions, was required.
"It's widely recognised that Dubai has taken considerable steps towards enhancing the sophistication of the real estate market in the last five years and is the regional market leader.
"But it has some way to go before being compared to the likes of London, New York and other leading markets," it said.
Dubai's real estate market is still in the doldrums, marked by slow sales as well as delayed or cancelled projects in the wake of the Emirate's property correction.
In what is believed to be the first of its kind survey, Hadef & Partners assessed views gleaned from over 500 completed responses received between September and October this year.
Many respondents took the time to provide detailed and extensive comments, according to the firm.
It said the favoured market stimulus options suggested by respondents included more flexible residence visa options for owners and investors.
They also hinted at the need for enhanced finance options for real and sustainable end users.
"Eighty-eight% of respondents felt an improved finance availability would assist in market recovery and approximately 75% believed that financial institutions are not adequately supporting the Dubai real estate sector," the report highlighted.
Most respondents favoured greater transparency on project cancellations and suspensions to ease concerns over the projected rate of further supply.
They also alluded to the need for efficient and less expensive dispute resolution procedures, together with an enhanced access to information.
"Many respondents highlighted a desire to have some other formal procedure in place that does not require the time and expense of going to court," the report observed.
Hadef & Partners is a full service UAE business law firm founded in 1980 by Dr Hadef Al Dhahiri, the current UAE Minister of Justice.
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