It’s quite evident that
Dubai “the destination” is materializing day by day. Supported by Government
initiatives, new legislation, economic reform and clear direction while fused
by abundance of liquidity, the market is getting nearer to the start of a new
cycle where more emphasis on value and sustainability are key.
While Dubai has been
viewed as a safe, welcoming city that offers affordable luxury offering great
beaches and sunshine with descent temperatures for 7 months of the year; Dubai
has been seen as a city that sits between east and west while offering a better
lifestyle than any of the surrounding cities; This all has been great for years
however a lot more is taking place now. One of the best infrastructures in the
world. Ease of doing business. the biggest man made Safari, an iconic opera
house, the biggest indoor theme park, the region’s largest inflatable water
park, the world largest mall, the world largest Ferris wheel, hundreds of
themed malls and outlets, some of the best exhibitions in the region, an
improving health care system with ambitious plans, campuses for some of the
best universities in the world, global financial centers with independent
English language common law judiciary courts, successful free zones, the
biggest airport in the world, one of international renowned zones for trading
commodities such as tea, some of the best airlines in the world and much more.
Dubai the destination is
the smart city in progress.
Below are some legislation
that relate to the real-estate market while supporting other sectors of the
economy.
· One of many, regulating the short term
rental market has a great impact on the general economy as well as the real
estate market. Two of the direct benefits are first on tourism as it allows the
city to attract tourists that viewed Dubai as an out of reach destination in
the past, while allowing every landlord to access a giant market that was out
of their reach in a regulated way.
· Regulating mortgages is one of the most
important steps taken, it helped prevent the market overheating, as well as
limited the ability of individuals to get the wrong exposure to real-estate which
in its turn supports the stability of banks in the long run.
· Supporting sustainability with several
initiatives from government entities including land department. Such
initiatives are supported with bigger R&D budgets available day by day. This
is expected to be a new driver to spark innovation and support future global
interest from organizations as well as individuals.
· Investor protection law, with its
several benefits to the economy. Sentiment damage due to developer’s inadequacy
is limited. This legislation changes the whole cycle from design to
construction and then getting the property into the market.
· Regulating the long term rental market
along with several initiatives that followed to make living more affordable,
and make it more feasible for multinational organizations to pick Dubai as
their headquarters. This creates a whole cycle as the availability of
international key tenants, supports the development of key commercial assets
which are scarce in the market, and attracts international buyers mainly funds
or HNWI who are always on the search for key income producing assets mostly
with one tenant.
· Strata law and the amendments that
followed and some that are still expected which sets the road for avoidance of
conflict of interest in most communities as well as sparks an atmosphere of
competitiveness which is always healthy.
· Repossession law and activating auctions and
foreclosures as well as the latest bankruptcy law support the economic cycle.
We will discuss in the
coming article introducing regulation for a better more transparent lease to
own approach, Time share and approaching lending in a friendlier way to none
residents as well as removing monthly income as a main eligibility criteria,
and how will this impact our market’s future.
by Makram Hani © Copyright
Arms &McGregor International Realty. All Rights Reserved.
