Real estate analysts and buyers urging that Property developers in the UAE should provide investors “an affordable exit route to ward off distress sales” that could further rock the depressed market. With the real estate sector facing a sudden slump in the backdrop of a sweeping global financial turmoil, it is imperative that developers as well as authorities should take a series of measures to restore investor confidence, analysts further added.

A leading banker, who wanted to remain unidentified, said a possible initiative from the government which could restore confidence and help galvanise the real estate sector is to reconsider the provision of residence visa facility for buyers of free-hold residential units. “In fact, an impression created by some developers during the beginning of the recent property boom cycle that all free-hold buyers would be granted residential status had been driving the market at a phenomenal pace of growth. However, a few months ago when authorities clarified that buyers of free-hold property were not entitled for residential visa status, the market started to get a jolt as several international investors pulled out of the market.”

Dr Ram Buxani, founder-chairman of Overseas Indians Economic Forum, said those who bought multiple of units to take advantage of lucrative earning opportunities should be accorded “an affordable exist route so that they do not resort to distress sales, delaying further the recovery of property market. The projects which have not taken off or just started must be put on hold and impatient and incapable investors should be allowed a convenient exit.” He said the sudden demand slump in the market and credit squeeze by banks have caught such investors unawares. “Faced with a Catch-22 situation, they are likely to default or resort to distress sales that may aggravate the resulting in longer delays for the market to revive. These individuals need to be addressed differently than bulk corporate and rich investors.”