Government guarantee aims to boost confidence in UAE property market

A number of developments in the UAE have been shortlisted to be covered by the first phase of a new government guarantee designed to improve confidence in the emirate's property sector.

The Dubai Land Department-backed initiative assures investors that finance and completion for certain developments can be secured.

Named the Tayseer system, the first phase of the project is aimed at increasing liquidity and confidence in the sector, Sultan bin Butti bin Mejren, director general of the Land Department, said.

"Through this and other related initiatives the department is introducing a different, comprehensive and coherent level of strategic management to Dubai's property sector," he added.

"This will offer clear transparency and in doing so inspire confidence among developers, end users and all those with an interest in Dubai's property sector."

Currently, a total of 40 projects have been shortlisted for inclusion on the scheme and once approved they will receive a government guarantee that they will be completed by a specific date.

Meanwhile, Jones Lang LaSalle has predicted that office vacancy rates in Dubai are likely to exceed 50 per cent over the next year.

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