Positive outlook for property just a PR stunt, says poll

Positive outlook for property just a PR stunt, says poll

Fake it till you make it? Apparently not. A majority of Kipp’s readers are dubious of any rebounds in the property sector. And it’s hard not to see why.

May 11, 2011 2:58 by Precious de Leon

A whopping 81 per cent of Kipp readers say any positive forecast about the property sector is “just a PR stunt,” according to our latest poll.

Following a recent spate of research firms giving positive outlook that the property sector in the UAE will rebound, Kipp was feeling a little too suspicious about all the good news and asked its readers if they believed all of the optimism.

What about the balance 19 per cent, you ask. Well, 11 per cent of you, dear Kipp readers, say you believe trust the research companies but are still “going to wait things out” while a surprising 8 percent said they are ready to invest their money into Dubai’s property sector (some people are just born risk takers, aren’t they?).

It’s no surprise though that people are dubious about any positive takes on the property business, especially when stories like this one on The National still sees real estate investors waiting on unfinished projects and the lack of recourse on developer-investor disputes.

Okay, it hasn’t all been bad news. Kipp has reported about DIFC court’s victory ruling for the Gaffneys, who won a AED1.7 million refund on a Damac unit that was not delivered on time.

Unfortunately, good news has been the minority in property sector—a far cry from the press releases from developers stating how future projects have been sold out off-plan. Remember those good ol’ days?

As The National says “The best option seems to be to lower expectations, hope the developer will do the same and try to reach a compromise.” So is this really the outlook investors are supposed to have when it comes to the hundreds of thousands and even million of dirhams they have poured into their investments?

Kipp thinks not. And we see a glimmer of hope that RERA thinks the same way as it just announced that it will establish a code of corporate governance for the real estate market. The move is said to be part of steps in trying to rebuild investor confidence. And with just a quick look among Kipp readers, RERA has its work cut out.