New property laws to drive growth in Abu DhabiBack
The effect of the recently implemented Regulation of Real Estate Sector in Abu Dhabi on financing and mortgage enforcement will be one of the core topics discussed at the upcoming Abu Dhabi Market Overview, taking place on the first day of Cityscape Abu Dhabi next month.
The forum will also put a spotlight on Abu Dhabi's most recent economic drivers, its residential market capacity, and the impact the potential oil freeze output deal may have on the real estate sector.
Chris Taylor, CEO of Abu Dhabi Finance, said in a statement that he is confident recent legal and economic developments will bring best practice into the capital's real estate, contributing to buyers' security and subsequently enhancing growth.
He said: Increased clarity and transparency alongside centralisation of property and mortgage registration, the management of escrow accounts and the creation of a mortgage law effectively reduces the risks involved in real estate transactions for all parties.
"Expat residents will be more likely to invest long-term in the market and non-resident customers will take great comfort from these new laws.
"The Property Law will lessen the impact of potential cyclical economic factors such as oil price movements on real estate prices creating a less volatile environment which should encourage continuous investment and growth of the sector."
Speaking ahead of his participation in the Abu Dhabi Market Overview, David Dudley, international director and head of Abu Dhabi office at JLL MENA, believes the current status of the real estate market in the context of the Property Law will bring many opportunities alongside higher financial security for investors.
He said: "New regulations affecting escrow accounts, land and property registration, strata law, the licencing of real estate activity and new fees will help support a better regulated market as they will improve transparency and help protect consumers as well as investors.
"The new laws place greater responsibility and regulation on developers, which will inevitably suppress supply growth. This will help reduce the risk of over-supply in the current period of weaker demand; however the key will be to allow sufficient supply to come through to maintain a healthy balance between supply and demand to keep rents and prices at a competitive level."