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

Nimer was speaking at the Infrastructure and Property Development MEA Summit at the Park Hyatt Dubai hotel on Friday. He also pointed out that liquidity and issues surrounding visas will play a key role in this regard.

Addressing the gathering, Nimer said, “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,' he remarked.

“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,” he added.

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 the three-day summit.

Nimer during his presentation entitled “Improving the properties framework to attract and retain investors”on the first day, outlined suggestions including relaxing visa rules to attract international investors, who are still nervous following the 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,” Nimer stated.

According to him, the UAE 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 observed.-TradeArabia News Service