RichVille suggests a plan to rescue Dubai real estate market

In addition to an overview of the current situation of the real estate market, the report segments the market and provides insights of the market consequently forming a set of suggestions that RichVille hopes will turn to a Plan to rescue the Dubai real estate sector from collapsing.

Sighting the current position of the Dubai market Mr. Tariq Ramadan Chairman on Tharaa Holding of which RichVille is a member, "It is very interesting to see that while the authorities around the world are taking all possible measures to revive their real estate markets (and their over all economies) by introducing measures which include - among other measures - 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 which already withstood a very slow summer season, and even slower Ramadan month, a worldwide financial crisis, declining property values in the US and Europe and finally a Cityscape exhibition with no sales activity whatsoever," he said

The report held the banks in Dubai responsible for the inactivity of the real estate market, even though the central bank has taken measures to support the banking sector and the economy, no direct actions have been taken towards the real estate sector even though it is one of the primary elements of the of the growing UAE economy. In fact 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 and also imposed measures like 35% minimum down payment, very high interest rates and very difficult approval terms.

The Report also annuluses the negative and positive elements of the real estate market at the current situation and suggested a rescue plan for RERA to play a much needed leading role that surpasses regulating and documenting, to cooperating with the master developers, government bodies, and main investors to develop a rescue plan for the real estate sector through working together, facilitating discussion panels with the top real estate experts to ensure the long term prosperity of the sector. The plan calls for master developers to delay any upcoming payments by 6 months to avoid default and panic in the market.

Final Mr. Ramadan, commented:

"We hope that this report and our modest attempt to contribute to a rescue plan will motivate RERA and the media to have further discussions with real estate experts who can provide more suggestions towards an integrated plan that has extremely positive rewards for all parties concerned both on the short and long term."