Common Platform for Property Developers MootedWednesday, November 04, 2009
A common platform for property developers will help them evolve joint strategies to face the ongoing crisis in the real estate industry, Gurjit Singh, Chief Operating Officer of Abu Dhabi-based developer Sorouh, said. Such a platform will also be able to represent the industry in discussions with banks and financial institutions on common issues being faced by them, Gurjit told Khaleej Times on the sidelines of the ‘Abu Dhabi Outlook Summit’ here on Tuesday. He also suggested that special purpose vehicles could be formed to evolve strategies to address issues relating to the real estate-based non-performing loans of the banks and non performing properties. According to him 2009 would be a year of consolidation for the property sector in Abu Dhabi and growth will start becoming visible from 2010.
The huge infrastructure projects announced by the government would lead to massive employment generation and in turn to the recovery of real estate industry in then capital emirate, as demand for residential and commercial units will increase proportionately, he said. On the availability of credit to the real estate industry from the banks, he said there are signs of the bank and financial institutions in the UAE easing their tightfisted hold on the lending. “Eventually they would become more liberal in sanctioning of funds when they become confident of the growth prospects in the release estate industry,” Gurjit said. Meanwhile, Deyaar Development, chief executive Markus Giebel said his company was not planning any further job cuts. Deyaar which is the second largest real estate company in Dubai had laid off 20 per cent its staff last week and was devising innovative strategies to overcome challenges thrown up the real estate crisis.Source: Khaleej Times