A real estate company has called upon the government to grant residency visas to those who purchase property across the UAE. In an exclusive preview of its annual report, Better Homes has revealed a list of recommendations about how legislators can manage the property market downturn. There are certain steps in which (regulators) can influence a faster recovery once the market beings to turn and move in a progressive direction,” said Kilby Mahoney, spokeswoman for Better Homes. She said that in addition to granting residency visas, the government should also intervene to ensure that service charges better reflect the decline in property prices. This can make buying and holding onto property more attractive and ensure rental yields are not affected by overpriced service charges,” said Mahoney.
The 50-page report will be released at the end of April and was prepared in co-ordination with Investment Boutique, a Dubai-based real estate research organisation. It will aim to give a clearer picture of current market conditions, as well as offering forecasts for the future. Mahoney said that researchers had predicted a recovery by the end of the year. “If lending becomes available and the prices level off by Q3, then Q4 should see an increase in the volume of transactions,” she said. As soon as it is clear that the market is bottoming out, finance becomes available and a stronger global picture begins to emerge, a recovery will inevitably occur due to the return of confidence. Many of the measures suggested in the report have already been mooted by government bodies.
In February the Federal National Council discussed creating a UAE-wide temporary residency plan for owners of freehold property. In the wake of growing concern over service charge hikes, the Real Estate Regulatory Authority, or Rera, in Dubai introduced a freeze on service charges in February, pending the creation of owners’ associations. The 50-page report contains four chapters including Residential Sales & Leasing, Commercial Sales & Leasing, Hospitality and Retail. It will be available for download by the end of April.
