New real estate laws adopted by Abu Dhabi will make a quality addition to its property sector, experts have asserted, calling for rational consideration and not fearing the consequences of the recent oil output freeze.
According to a statement obtained by Arabisk London, enforcing the new real estate laws in Abu Dhabi and their effects on finance and mortgage transactions will be an important discussion topic in the upcoming Abu Dhabi Market Overview forum.
The forum will take place as part of the Cityscape Abu Dhabi event due to be held on 12-14 April at the National Exhibition Centre in Abu Dhabi.
In addition, the forum will also focus in its discussions on economy incentives in Abu Dhabi, residence market capacity and the effects of the oil output freeze on the property sector.
Meanwhile, Chris Taylor, CEO at Abu Dhabi Finance, thinks that the legal and economic developments in the capital will pave the way for better practices in its property sector. This is especially so with the presence of several factors that help guarantee investments and enhance growth.
“Increasing clarity and transparency, centralizing property and mortgage registration, managing security accounts and putting a mortgage law – these are all factors that contribute directly to reducing the risks of transferring property for all parties,” he said.
He also added that, “Expats living in the UAE will most likely look for long-term investments in the market, while clients not living here will benefit greatly from the new laws.”
“The real estate law will decrease the effect of periodic economic factors like the effect of oil prices on property values and creating a more stable environment, which encourages investment and growth to continue within the sector.”
Similarly, David Dudley, head of JLL MENA office in Abu Dhabi, who is also participating in the upcoming forum, thinks that the new law will allow the property market, in its current situation, create new opportunities in addition to fulfilling financial security for investors.
“The new legislation on outstanding bonds accounts, registering lands and property, strata laws, licensing real estate activity and new commissions, are all factors that will help create a more organized market,” he said, “They will also enhance transparency and protect clients and investors.”
“The new laws put more responsibility and structuring on the entrepreneurs, which will in turn limit the growth in the supply,” he added, “This will contribute to reducing the risks of increasing the supply in current times when demand is low. The solution here is to allow a limited number of supply to enter the market in order to ensure a healthy balance between demand and supply to keep prices and rents within a competitive level.”
The Abu Dhabi Market Overview forum will also feature expert discussions about the potential repercussions of the oil output freeze agreement on the capital’s economy.
Dudley points out the positive aspects of the current slowdown, despite the fact that oil prices and output volume were primary factors in pushing Abu Dhabi’s economy and the real estate market in addition to securing a large amount of the GDP, foreign direct investments, employment and consumer spending.
“The good news is that the growth in demand continues from the big projects in the capital, which started when the oil prices were strong,” he said.
“Large-scale projects such as expanding the airport, the growth of Etihad Airways and other tourism attraction elements including the Louvre Abu Dhabi – all have several effects on the economy that guarantee the continuation of GDP growth.”
Among other participants in the forum are: Cyril Lincoln, head of real estate finance in Abu Dhabi Commercial Bank, and Fergal Harris, global head of real estate and family conglomerates at the National Bank of Abu Dhabi.
Over ten years of its existence, the Cityscape Abu Dhabi has been able to establish its position as the largest and most influential real estate events in the UAE capital. It is considered a platform for exhibiting hundreds of real estate projects from Abu Dhabi and countries around the world.
The event is also a meeting point for investors, entrepreneurs, government officials and real estate development experts. Cityscape Abu Dhabi is held with the support of the Platinum Sponsor and will take place alongside the Bride Abu Dhabi Exhibit.