Lack of transparency putting off expatriates to invest in real estate sector
Written on June 26, 2011 by George Geoghegan
Dubai real estate market is in trouble and not a single person doubts. If you are a little bit concerned about real estate happenings around you then static cranes, halted projects, unfinished buildings and pitiable expatriates in Dubai will give you a clue as to what is happening over here. Emperors have promised a lot to do for the recovery of real estate sector but expatriates’ allure is fading now. They are reluctant to heavily invest in this sector and it is not happening for the minor reasons but the fact is that lack of transparency is putting them off. I know what I am going to report in this post so keep reading.
When one strong sector of economy fails, it does not fail in isolation, it takes many other sectors with it. Similarly when the financial crisis occurred in the banking sector, it lowered down the real estate sector as well. The market that soared during the high boom of Dubai is crashed now. The connoisseurs do not put the all blame on global downturn but also consider the lack of transparency equal responsible. And this is what keeping foreign investors away from investment in Dubai real estate.
Dubai has built a reputation of providing high class living experience before the financial crises. But alas that government did not take positive steps soon after for the recovery of this sector. That is why expatriates are not picking up properties like hot cakes yet they have become very choosy and conservative in investing here in long term projects and same goes for seeking properties for rent in Dubai. I have read somewhere that private sector and government in collaboration is trying to minimize the impacts of financial crisis on prospective investors but it is not as promising as global downturn has wiped out the trust as well.
Few reliable developers are still there and trying to improve regulations and selling transparency. Few laws and regulations are also introduced to check the source of corruption but I must say that there is a long way to go when Dubai will win back the trust of investors.
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