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Mazaya Monthly Real Estate Report -
Week 2 - May 2016
This situation gives rise to risks on
the current and future status of the
region’s real estate market, which
expects to handover projects to a value
exceeding tens of billions of dollars,
in the coming years. However, it has
become evident, with further laws
and legislation coming into force,
the space left for negative practices
to have any influence is reducing.
Al Mazaya Holding’s Weekly Real
Estate Report points out that the overall
influence of real estate brokers' practices
is moving in the reverse direction to the
developments in laws and legislation
recently passed by several governments
– both in the region and internationally. As
the cases of brokers' negative practices
reduce, through increased scrutiny
over the nature of deals and contracts
– in particular those produced by real
estate exhibitions – we no longer hear,
for example, that off-plan real estate
units have been sold several times
over with their prices doubling before
their projects even come to be built.
In addition, laws and legislations
related to real estate financing, enacted
by the supervisory bodies, are placing
further restrictions and limitations on
the values and volumes of liquidity
moving towards the real estate sector,
thus setting further controls to avoid
negative deviations. At the same time,
finance networks have become more
efficient in terms of calculating risks
and revenues. Ultimately, this leads
us to conclude that attempts to adjust
the real estate market dynamic have
become a collective responsibility
involving both government bodies and
the private sector. This includes the
likes of developers and banks, with
further transparency and stability in
the real estate market assured by new
and effective laws and regulations.