Dubai property reforms' spillover effect to be felt in Northern Emirates

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The spillover effect of real estate reforms being introduced in Dubai will also be felt in the Northern Emirates property market and help improve confidence of investors, industry executives said on Wednesday.

Ali Hamdoon, director of marketing and sales at RAK Properties, said UAE leaders have already started taking steps to bring improvement and balance in the real estate sector through different reforms and initiatives. "Reforms started with Dubai will supersede to all over emirates. Dubai is a model for reforms. Initiatives taken by Dubai reflect positive in real estate sector across the seven emirates," he said.

He stressed that UAE's real estate is no more a speculative market as it is now for end-users: "I think people are exaggerating their fears about the real estate market; it is because they have plenty of choices. If you have fewer options available to people, they wouldn't have said it. People should understand that real estate is of a cyclical nature. Now, it is stable and on correction track," he said on the sidelines of Cityscape Global.

Ahmed Alkhoshaibi, CEO of Arada, said the government is doing all the right steps to support the industry.

"The recent decision of setting up the higher committee is definitely right step and will help everyone. by next year, the market should return to modest growth on the back of initiatives taken by the government. Sharjah has also been doing its bit before the real estate became challenging. The first-half of 2019 has seen Dh14.7 billion in sales, which is 15 per cent higher than last year," Alkhoshaibi added.

Khalifa Al Shaibani, director-general of Tilal Properties, said the Sharjah market is stable but a correction takes place time to time as it is a cyclical industry.

He said some developers have slightly overpriced margins.

"The ticket price is slightly high but overall we can see the market should pick up in 12 to 18 months. Latest regulations by the UAE Cabinet such as the Gold Card will boost marketing. Developers are now redesigning their projects to fit in line with the legislations. Today, a lot of investors are considering lease to own options," Al Shaibani said.

He pointed out that the Rulers have taken a number of initiatives at the federal and emirate level and its results be realised in the near future.

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