Monday, April 26, 2010

CEO of MAG Group Property Development outlines proposals to help Dubai’s housing market thrive once again

Property chief eyes real estate recovery

CEO of MAG Group Property Development outlines proposals to help Dubai’s housing market thrive once again

The CEO of MAG Group Property Development, Mohammed Nimer, believes improved liquidity, greater transparency and tougher regulations will be key to the recovery of Dubai’s real estate market.

Nimer, talking yesterday at the Infrastructure and Property Development MEA Summit at the Park Hyatt Dubai hotel, also explained that liquidity and issues surrounding visas will also play important roles.

When addressing the issues of transparency and liquidity, Nimer told the audience at the Park Hyatt Dubai hotel: “Improved liquidity, greater transparency and tougher regulations are needed more than ever to reassure and protect legitimate investors seeking a reasonable reward for a reasonable risk.
“Critical in my view from an investment perspective will be affordability, transparency, return on investment and trustworthy partners. If recent events have taught us anything it is that we must operate in an environment of complete transparency and robust regulation.

“But improved liquidity is also vital to recovery. Transparency and regulation inspire confidence but liquidity makes sales. Mortgage facilities, registration of owners’ association, REITs entering the market can be expected to fuel transactional activity in the coming years,” added Nimer during his presentation entitled “Improving the properties framework to attract and retain investors”.

During his presentation on day one of the three-day summit, the CEO outlined suggestions including relaxing visa rules to attract international investors, who are still nervous following the global financial crisis.

“The relaxation of visa rules is a federal issue but it needs to be consistent and investor friendly. Malaysia and Thailand lead emerging markets in encouraging international property buyers and as such this country could learn from them,” explained Nimer.

“The UAE also needs to attract more expatriate workers and foreign companies as the future depends on population growth and increasing business relationships with rest of world.”

Nimer also outlined how this year will set the precedent for the future, highlighting the need for action to encourage the green shoots of recovery in the local real estate market to flourish.

“The UAE needs to go back to basics. Solid market fundamentals as opposed to sentiment are always at the heart of a sustainable recovery and 2010 is a crucial year for determining the direction of the UAE’s real estate industry as the world pursues post-crisis recovery,” he said.

Nimer brings more than 30 years’ experience in construction and property development to the summit. Having worked in both the Middle East and North America, he has experience in developing both commercial and residential low- and high-rise buildings.

The MAG Group CEO joined a list of distinguished speakers, which also included Jeffrey Willis, Chairman of the Emirates Green Building Council and Gurjit Singh, COO of Sorouh Real Estate Development, to discuss such topics as Upgrading Urban Planning & Design, Green Building and The Return to Value at this three-day summit.

About the MAG Group

The Dubai-based Moafaq Al Gaddah Group of Companies (the MAG Group) was established in 1978 and has grown into a multinational organisation with 18 offices in eight countries throughout Europe, the Middle East and Asia.

In the last five years the MAG Group Properties has invested in 12 properties at various stages of development across the residential, commercial and industrial sectors. The company focuses on projects that provide long-term benefits to investors and customers.

In total MAG has a property portfolio in excess of AED3 billion and was one of the first developers to create Escrow accounts for all of its projects, long before the Dubai Government introduced Law number 8. In October last year, MAG Property Development was awarded ISO 9001 certification by risk management company Det Norske Veritas (DNV). MAG still remains one of the few developers in the region to be accredited to that standard.

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