The UAE real estate market has entered the correction and stability phase, said the chairman of Al Hanoo Group Saudi Arabia.
"The real estate has turned into a market full of speculations that harmed the economic as a whole," Abdullah Al Shakra said at Abu Dhabi Economic Forum yesterday. He said the real estate prices in the UAE over the past years were illogical or unreal.
Al Shakra said Al Hanoo Holding is currently working on two vast housing projects in the UAE.
"We have opted to offer them for sale before the completion of the infrastructure, contrary to what many other developers do."
The chairman highlighted the successful intervention by UAE governments to regulate the realty sector, referring to the legislations issued by Dubai and Sharjah. Abu Dhabi is now working on an integrated legislative system, he said.
Al Shakra said the UAE realty sector is very strong and it is an important source for the gross domestic product. It should be further regulated through required legislations. Also any harmful speculation should be encountered and buyers protected.
Al Shakra expressed hope the real estate sector would recover. He said the last five years witnessed an unprecedented economic leap in the UAE which generated the need for realty products leading to growth.