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Mazaya Monthly Real Estate Report -
Week 2 - JULY 2015
Al Mazaya Report concludes that the
GCC RS market has been enabled
to compete globally benefiting from
the variety of RS products. The
rhythm of RS momentum remained
within the secured borders in spite of
challenges and pressures. Moreover,
the RS market is now far from creating
RS bubbles. Furthermore the sales
markets available to the end user are
notably active both domestically and
by foreign investors as well. Still, the
prevailing prices remained attractive
at most locations, while the lease
market was less efficient and remained
unjustifiably expensive most of the
cases. Alternatively, this situation
is positive to investment RSs, but
unfortunately maintains the negative
pressures placed on the leaseholders.
Rules and Regulations:
Al Mazaya Report stresses on the
significance of the rules and regulations
approved this year to stabilise the RS
market and maintain its growth following
international best practices in order to
guarantee the rights of all parties and
secure the market against unjustified
threats. It is now evident the RS Acts
approved in the Emirati market had a
major role regulating the RS and financial
sectors doubling the registration fees
aiming to minimise bargaining on prices.
The procedures taken by the Central
Bank aimed to enforce certain limits on
the negative practices affecting loans.
Similarly, the new law enforced in Abu
Dhabi is hoped to regulate the RS sector,
protect the rights of all parties, attract
investments and support economic
growth. The fees imposed on residential
land in Saudi Arabia echoed great dispute
in the RS market given their apparently
endless effects on the market. It is further
inevitable this resolution will push several
landlords to liquidate wider spans of their
land. The Housing Ministry interfering in
this regard was very important to control
the prices. The RS activities taking place
in the Omani market relate to the law
issued to repeal the RS not being utilised
for 4 years starting from their registration
date aiming to push landlords to better
utilise land as for their planned purposes,
and not abandon them for longer
periods. These procedures may also
stimulate RS market and control prices.