The outlook for the real estate market in the United Arab Emirates is much improved over that of the previous few years. Much of this is due to all segments of the real estate market in Dubai currently experiencing a recovery, to the extent that prime office rents are rising for the first time since 2008. The bursting of the real estate market bubble in 2008 dropped these prices in Dubai as much as 65%. In order to avoid a repeat performance, the government is taking steps to ensure that sustained growth is not over exuberant.However, up to 70% of property purchases are made in cash, which makes it difficult for the government to regulate the market’s growth. Experts remain cautiously optimistic, as they watch Dubai’s market making a broad recovery; though regulations are not yet in place to avoid another recession, they do not foresee a repeat of 2008 in the near future. Abu Dhabi’s real estate market, on the other hand, is estimated to be 18-24 months behind Dubai’s market. Plans are now in the works that should see Abu Dhabi experience a recovery on the scale of Dubai’s sometime in 2014.The real estate market is expected to continue its broad recovery during the next few months and well into the rest of 2013, though growth approaching an economic boom is not expected for this year. Financial experts have identified seven major trends expected to determine the UAE’s market for the rest of 2013:Dubai’s market will display a return of investor confidence. The Abu Dhabi market, however, will not yet see a similar upturn. Factors driving Dubai’s market gains include the UAE’s economic growth, increased employment, safe haven status, improved pricing and rental performance, multiple new real estate project announcements over the past six months, and the UAE Central Bank setting new mortgage caps.
Several factors will limit the rate of development. Off-plan sales, IPO bonds and bank loans barely support the current rate of growth. This means most developmental funding will come from private money and overseas cash investors.
Much of the foreign funding in 2013 is expected to come from Chinese and South Korean investors.
Increased supply in real estate will benefit buyers and tenants, but may offset the positive impact on the market.
2013 will see a greater concern for health and safety, with occupants making demands and legislation ensuring the adoption of best practices. This favors a best-value vs. lowest-cost approach to investments.
Likewise, 2013 will likely see a greater focus on initiatives for sustainable, ‘green’ buildings.
UAE government will continue to influence the market’s growth with initiatives such as mortgage caps, and stimulus packages.These trends support the widely-held view that the UAE’s real estate market will see a broad recovery in 2013; a good, stable growth, that, if not an economic boom, will not result in a dangerous market bubble like that of 2008.

With the recent spike in home sales, buyers and sellers alike are feeling the pressure to quickly close on their purchase transaction before mortgage rates go up and demand for new homes slip. But before rushing to “ink the deal,” understand that real estate professionals are required to provide written disclosures to their clients on a variety of important items necessary to the transaction, as they directly affect the buying or selling decision. Here are 8 areas where written disclosure should be or are required:1. Affiliate Disclosures. These days, it’s common for a mortgage company to have a business interest in a title company or a real estate brokerage to also own a mortgage company. These are called “affiliate” relationships, and the relationship must be disclosed to the potential end users of these services. For instance, a mortgage company must disclosure in writing to its loan applicants that is also owns a title company that will close on the mortgage and purchase transaction. A loan applicant is not required to use the “affiliate” title company and can use another suitable title provider instead. Most importantly, a home seller or buyer cannot be pressured to use an affiliate service or be prevented from seeking a loan or making an offer on a home, just because one chooses to do business with an “unaffiliated” business.2. Third- party services. Similar to the above paragraph, a home seller and real estate agent cannot require someone to use a third party service in order to purchase a home. A third- party could mean a lender, a title co, an appraiser or inspector. However, one can give better pricing to a buyer who uses their services. For example, a lender can waive fees if the buyer uses one of their “affiliates,” however, they cannot prevent you from making a loan application or denying a loan for refusing to use their business affiliates.3. Real estate agent disclosure. If a real estate agent is selling a home that they own, they must disclose that they are a licensed real estate agent. Some states limit this disclosure to only an agent’s primary residence. Other states require the disclosure for any properties that the agent owns.4. Dual agency. A seller’s agent or “listing agent” represents the seller. The seller’s agent does not have any professional duty to a buyer who is not represented by their own agent. The buyer should hire their own agent. A dual agent is an agent or real estate broker that represents both parties in the transaction. Agents must provide written disclosures to both a parties when they act as dual agents. In theory this disclosure is supposed to make a dual agent in a transaction neutral. However, a real estate deal is never without some controversy and give and take, and therefore this writer suggests that a prospective purchaser hire their own “buyer’s” agent.5. Title agency. A title company’s function is to insure that the ownership to a specific property is valid according to public property records so that a lending institution can provide a mortgage on the property or a purchaser can take proper title from the rightful owner. Title agents represent the insurance companies that provides this coverage. They do not dispense legal advice to buyers or sellers. They do not represent lenders or real estate brokers. Title companies must disclose when they have an affiliate relationship with a property service provider, meaning that they are owned by the lender or real estate brokerage, or even an appraiser.6. Provide all offers. A real estate agent is required to provide its sellers with all offers. Unless a seller specifically instructs an agent not to bring certain offers, say one below a certain price or time frame, the agent must present the offer. Therefore, if a buyer feels that an offer was not presented, they should contact the agent’s broker. In some states, it’s customary for a buyer or their agent to present the offer directly to the seller. But nothing prevents an enthusiastic buyer from directly speaking with a seller, it’s just not commonplace.7. Terminating a real estate agent. It is a common misconception among sellers that they cannot fire or terminate their listing agent. They can. However, the best way to still market one’s property without bad feelings is to approach the agent’s broker and have the broker assign a new agent to the listing. Understand that the agent and broker still have a “protection period” that protects them against the seller closing a transaction with a buyer that the agent, through their business efforts, had previously procured. The period is usually for 180 days, but at time of listing a property this period can be negotiated down to 90 or even 60 days. Regardless of the time limits, it is wrong for a seller to take advantage of the agent’s efforts and is grounds for legal action.8. Attorneys. Like a property agent, an attorney cannot represent a buyer and a seller in a transaction unless the attorney discloses the conflict in writing and both parties sign the disclosure. If two parties to a transaction have completely different versions of a transaction, then it’s time that one party hires their own attorney.In a residential real estate transaction written disclosures comprise most of the real estate package. For those new to real estate, hire the right adviser to guide one through a successful transaction. But make sure to read and understand the disclosures and how they apply to one’s deal, as they are there for the buyer or seller’s benefit.