Investor sentiment running high in GCC property market

Proper legal structures are the foundation for any substantial progress in the sector, and deciding what country-specific legislation and regulation is required may mean the difference between success and failure in the industry.

"A few GCC states are becoming quite active in enacting land laws which favor non-GCC nations, most notably Qatar, but there is certainly demand among other countries for similar national laws to be put in place," says Lisa Dale, Partner - Head of Property Department, Al Tamimi & Company, the UAE-based legal firm and a confirmed speaker at the upcoming Cityscape 2004 international commercial architecture and property development event taking place in Dubai.

"What is important, I think, is for a common understanding within the various national governments and the real estate industry of the relevant issues, possible solutions, and the steps required to progress from this point to a fully developed land law system," she adds.

But strong investor sentiment is paramount to the continued growth of the GCC's property development sector, which means that buyers must also be comfortable with the legal structures that are afforded them in the various regional markets.

"Most GCC laws do not support non-GCC national freehold ownership of property, and this situation presents huge risks for our clients. We don't ever discourage clients from investing in property, but we do have a professional obligation to make them aware of their risks," says Stephen Ballantine, Legal Consultant with Dubai-based Galadari & Associates.

One suggestion that has been put forward by several legal professionals is a GCC-wide introduction of a "compulsory registration of title" law that would not only remove ambiguity as to whether non-GCC nationals can own freehold property, but also assist financial institutions in the lending process.

"Until the GCC collectively puts in place clear and unequivocal legislation, the property sector will remain only a marketplace and fail to become an established market," adds Ballantine.

Cityscape 2004 will take place between 29 November and 1 December 2004 at the Dubai International Exhibition Centre and attract top architects, international and regional property investment and development experts, and urban planners from the US, Europe, the Middle East, and Far East.

"Attendees to Cityscape 2004 will hear from the region's leading property developers but also leading legal experts in the Middle East who can present perspectives from both the developer and buyer of regional properties," said Neil Hickman, Cityscape Project Manager, IIR Middle East.

Three pre-conference workshops will take place on 28 November 2004 at the Dusit Dubai Hotel. These will focus on real estate finance and investment, controlling construction costs, and project management for property developers.

The exhibition has already sold more than 4,500 square meters of space, with nearly all major industry players having confirmed space.

Cityscape 2004 will also feature the prestigious Cityscape Architectural Review Awards - "Design for an Emerging World". Working with the world renowned Architectural Review magazine on this exciting event, Cityscape will recognise and promote excellence in the regional architecture and design industry. Nad Al Sheba, the official venue for the prestigious Dubai World Cup, will host the awards ceremony scheduled to take place on the 29th of November 2004.