Subsidies can bring Dubai construction industry back on its way!

Dubai Properties sector is not enjoying the high time now-a-days as it was doing before 2008 but according to the latest news, it can pave back the recovery path soon. There are certain factors that are required to be resolved for the quick economic growth. But what are they? Certainly, the economic factors are not only responsible for slowing down the activities of real estate sector but are causing problems in other sectors as well. Construction sector is one such sector that is being directly and indirectly affected by the rough economy. When no one is willing to buy the already constructed properties, it is useless to spend money on further construction of new properties. Construction companies and Dubai Property developers demand long-term subsidies for the new property projects to kick start. The drooping construction industry needs an immediate support from government that will help and boost the industry throughout Dubai and UAE. Subsidies and discounts on municipality fees and electricity are the best forms of official support from the government. Dubai Government must facilitate developers and investors to subsidize them and give them tax exemptions. Experts and developers also support this theory and expect subsidies for 8 to 10 years. Once the government will take this daring step, it can encourage more developers to come in action by showing them real guarantees, discounts, exemptions and subsidies. The cuts can be funded by lucrative oil and gas sector that are much supportive and can provide a back up for this industry. Currently, rare developers are in position to start any new project or complete the construction of halted projects. Everyone is aware of economic crunch in the late 2008 that has turned the upside down of Dubai real estate sector by dropping the prices 60% below than the actual prices, put billion dollars of worth projects on hold and left construction industry groping for cash. All financial and back up resources were ended. Keeping in view the need of the time, stakeholders of Dubai real estate sector expect solid, long-lasting and effective steps from the government that can help them in bringing a good change in real estate and construction sector. RERA has also issued a report in March regarding the financial viability of around 90,000 properties due to be delivered in the next five years. Almost 300 projects have been cancelled, suspended or put on hold due to developers’ inability to carry forward the projects. Due to this situation, several contractors and developers have left the country and prefer to work on the construction projects in the neighboring countries, where government is ready to spend billions of dollars on their developmental projects. However, withi UAE, Abu Dhabi real estate and Dubai Rentalmarket seems to be promising and encouraging for the developers to restart construction work in UAE. However, the question is, can support from oil & gas sector and construction in Abu Dhabi real estate sector bring any positive effect in the overall economy? Let’s leave the decision on contractors and developers, who want to bring Dubai real estate sector back to progress.