27 November 2008
A report from UAE real estate asset management company Richville yesterday accused Dubai authorities of 'doing nothing' to help support the property sector.
"While authorities around the world are taking all possible measures to revive their real estate markets [such as] cutting interest rates and providing some tax incentives for property buyers, authorities in Dubai seem to be doing nothing to support the real estate sector," said Tariq Ramadan, chairman of Tharaa Holding, of which RichVille is a member.
The Fourth Quarter Dubai Real Estate Market Report added that the steps taken by the central bank so far were not in the best interest of the sector.
"The measures taken by the central bank and subsequently the banking sector will ultimately negatively effect the real estate sector since banks have revised their lending terms to make it extremely hard for developers, investors, and end-buyers to obtain approvals for loans."
The report came as five of Abu Dhabi's investment, real estate and finance companies announced the launch of Abu Dhabi Finance, a new mortgage provider.
Aldar, Sorouh Real Estate, Abu Dhabi Commercial Bank, Mubadala Development Company, and the Tourism Development and Investment Company are shareholders in the new firm, which will initially provide mortgages to home buyers in Abu Dhabi.
Mortgages with loan-to-value ratios of up to 85 per cent, loan terms of between three and 30 years, flexible repayment methods and debt service ratios of up to 55 per cent will be available from the firm, the announcement said.
A report from UAE real estate asset management company Richville yesterday accused Dubai authorities of 'doing nothing' to help support the property sector.
"While authorities around the world are taking all possible measures to revive their real estate markets [such as] cutting interest rates and providing some tax incentives for property buyers, authorities in Dubai seem to be doing nothing to support the real estate sector," said Tariq Ramadan, chairman of Tharaa Holding, of which RichVille is a member.
The Fourth Quarter Dubai Real Estate Market Report added that the steps taken by the central bank so far were not in the best interest of the sector.
"The measures taken by the central bank and subsequently the banking sector will ultimately negatively effect the real estate sector since banks have revised their lending terms to make it extremely hard for developers, investors, and end-buyers to obtain approvals for loans."
The report came as five of Abu Dhabi's investment, real estate and finance companies announced the launch of Abu Dhabi Finance, a new mortgage provider.
Aldar, Sorouh Real Estate, Abu Dhabi Commercial Bank, Mubadala Development Company, and the Tourism Development and Investment Company are shareholders in the new firm, which will initially provide mortgages to home buyers in Abu Dhabi.
Mortgages with loan-to-value ratios of up to 85 per cent, loan terms of between three and 30 years, flexible repayment methods and debt service ratios of up to 55 per cent will be available from the firm, the announcement said.
© 7Days 2008
