Brokers, banks and developers must work together on a “combined solution” for the Dubai real estate market to recover effectively, a prominent property expert has said.
Mohammed Nimer, chief executive of developers MAG Group Properties, warned market players are currently all working to their own agendas when it comes to getting sales moving again.
He also said government agencies, insurance firms and investors were part of the picture and that the whole real estate process needed a united approach and plan to work to.
Founded in 1978 MAG is involved in AED 3 billion ($816 billion) worth of projects in the UAE and has invested in 12 real estate schemes in the last five years.
Mr Nimer said: “Each interest group is having a modicum of success, but it would be far more effective if all interested sectors worked together.”
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.”Recently some banks have raised loan to value ratios and introduced new payment plans, but Nimer said in isolation these measures have “limited effect”.
He also noted more developers and investment groups are taking the rent-to-buy route to keeping the house sale option open to those who might otherwise lack confidence to commit to property ownership. Since the turn of the year the Dubai property market has seen many developers cut prices and change payment plans, government agencies pass confidence building measures and many real estate firms lay off staff.
MAG’s under construction real estate portfolio currently features MAG 218, a residential apartment scheme in Dubai Marina, and the firm has recently completed MAG 214, a waterfront residential scheme at Jumeriah Lake Towers.
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