Developers' contractual pressures 'could aid property investors'

Developers with real estate in the UAE could be forced to sell their sites to those looking at property to buy in Dubai if they are to meet their contracts, an expert asserts.

Walid Jaafar, a partner at Fichte and Co Legal Consultancy, tells Emirates Business 24/7 that those with a holding inventory of homes will be charged for these.

He suggests this could come in the form of master developers' service charge payments or bank charges on construction loans.

"If loans are not extended, developers will have difficulty in fulfilling their contractual obligations with buyers and fail to deliver the promised property," he tells the news provider.

Mr Jaafar suggests that this could lead the firm to default on its contracts and be sued by other stakeholders in the project, potentially leading to bankruptcy.

In other news, an international shipping company has extended its business into the Dubai market.

United Auto Transport will allow overseas investors to move their possessions to their new homes, which could help those looking at buying property in Dubai.