Mohammed Dahmash, head of the Middle East office of Ernst & Young, says in a report out today that the next major issue for the regional property sector is "economic and regulatory risk". He says these risks are more concealed in emerging economies, making them more dangerous.
"Some crucially strategic challenges include managing specific local regulations like property rights, tax laws (where applicable), arbitration and residency clauses," he says. "Equally important is the enforcement of laws concerning bankruptcy and foreclosures."
He also points to shifting demographics as a major concern for developers. If they do not respond to the "ballooning middle class" segment, then it could "prolong the industry's recovery process".
The full release is here:
