Secrets for Property Developers caught the Ice Age
The very idea of selling a whole ownership property today in the minds of many developers and agents is almost as likely as snowfall in the UAE in July.
That being said, anything is possible, noting shifts in the weather system due to global warming.
However, the real estate market is experiencing global cooling, a term which is used to describe the frosty cold shoulder from consumers and many investors.
Developers are seeking other outlets, new markets, but are discovering the same climate everywhere, wallets, it seems, have been hidden under the tight cozy blanket of doubt about the future.
No one can even guess today where property values will be in three months time, while six months from now many are predicting the ICE Age of property sales.
What can all this mean? Simply it is the age of transformation of values, and a time to adapt for the survival of the fittest, or most flexible.
In the classic animated film Ice Age, a star character, Manny the Mammoth Elephant, turns against the trails trampled on by the masses and blazes his own unique adventure. He noticed they all seemed to be suffering from mass hysteria and could not be bothered to be caught up in the panic, he had his own agenda.
He is the metaphor of a maverick Ceo, an eagle or pioneer developer or industry leader.
Today although the property market is dotted with copycat developments, designs and product offerings, more and more leaders are taking the ‘MANNY’ point of view.
Now is the time to be bold, some say, now is the time to re-invent and re-package assets and offer the public something they really want, can afford that will bring them value.
One of the shining stars of fresh approaches to navigate through this labyrinth of uncertain marketing approaches seems to be combining more partners to buy a single asset, known as fractional ownership, or collective ownership.
This harnesses the buying power of several parties who share the risk and the rewards of using and enjoying an asset that is especially for end users to enjoy as a second home for typically one month a year. The Dubai market in particular was never an end user market, more speculative and therefore more vulnerable to see values skewed.
The quality that is offered both in terms of luxury and services make this option attractive even more when the fraction of ownership can also enjoy appreciation.
Products such as this will drive end user demand, as it makes it more affordable with an investment upside for equity gains when values begin to soar again, and they will.
“Pioneers will never follow this mass hysteria, says Michael J. Tolan, CEO of World Class Group, Dubai. “
“Whatever is happening in the world today it will pass eventually, like any transition, no matter if it takes 12 or 24 months to restore the bright sunny values of yesterday.” he added. Developers who ask the question what are clients willing to buy, what do they really want, and how can we make it most affordable and safe to invest, will begin to see Fractional Ownership as one of the viable paths to create win- win scenarios for all parties concerned.
