“Investor interest from outside the UAE has increased considerably in the last year as residents looking for affordable living space in and around the capital city has grown - there’s serious potential here."
Abu Dhabi (PRWEB) November 25, 2011
The unfavorable economic climate in the United Arab Emirates (UAE) during the last several years clinched what was at one point a profitable boom in the region’s real estate market, leaving both domestic and international investors weary. But with recent regulation and the promise of future legal development to fortify existing and create new laws, experts within the commercial and residential real estate realms are more optimistic about what the future holds, according to Ozone Real Estate, a local UAE firm.
As reported this year in international news media outlets, including Emirates 24/7 and World Property Channel, the capital city of Abu Dhabi, the second largest city in the UAE and one of the current real estate hot spots, is in the process of forming a regulatory agency that will monitor escrow, mortgage and other related laws to protect outside investors and keep their best interests in mind. This move has been long awaited, the news sources stated, and this new agency should help streamline sales and purchasing by removing ambiguity that has since made the process confusing and, to some, risky.
“Investor interest from outside the UAE has increased considerably in the last year as residents looking for affordable living space in and around the capital city has grown - there’s serious potential here to develop commercial and residential living spaces that will benefit the needs of residents,” said Tej Kohli, founder of real estate investment firm Ozone Group. “Prices are beginning to stabilize, and now with developing regulatory forces within the region, companies looking to expand their property investment into the Middle East can do so with great confidence.”
But what will change to make these ventures more attractive to outside investors?
The projected legal revamp will protect investors initial deposits, often up to 30 percent of the asking price, by ensuring payments are protected within a trust account during escrow and the funds utilized legally without fear of profit loss before any development begins, Kohli shared.
He also said that new laws will protect banks from defaulters, outlining the institutions rights in clearer detail than they have been in the past in order to clear any confusion or misunderstanding.
Laws like this are developing throughout the UAE, setting solid restrictions and regulation in cities such as Dubai, home to the largest population within the UAE and some of the highest demand from international investment interest.
And though the final announcements have yet to be made, Kohli reminds real estate brokers and developers and especially those entering the UAE real estate market from outside firms that there’s no time like the present to take advantage of the imminent boom.
“Growth in the tourism and residential real estate markets has improved in the last year with stable signs of recovery from the economic slump,” Kohli said. “Owning property freehold is more appealing than ever now with stronger buyer protection. Acknowledging the growing demand for commercial and residential space from new and potential residents, there’s ever more reason to find a reputable development firm that can walk potential investors through the process to assure the right purchasing decisions are made and that, while laws become more clear and formally enforced, no part of the deal falls through the cracks.”
About Ozone Real Estate Group
Ozone Real Estate Group is a multifaceted real estate company based in Abu Dhabi that helms fully funded investment and development ventures with the United Arab Emirates. With more than five years experience in this realm, Ozone manages an investment portfolio of over AED 1.2 billion, the company’s development reaches into both the commercial and residential living markets, and its aggressive and knowledgeable approach has made it a fast emerging and trusted brand among its colleagues and cohorts within the real estate development business around the world.