Will leisure real estate gain from the new timeshare laws?
The leisure real estate sector in the Middle East region stands to gain through the establishment of local timeshare regulations, according to Steve Holmes, chairman and CEO of US-based Wyndham Worldwide, parent company of Group RCI, the world leader in timeshare exchange. Holmes’ comments were made at the Global Travel and Tourism Summit in Dubai.
He said, “We are pleased that this new timeshare law is now in place as we know that this is an essential step to establishing the timeshare industry in this new market. These protections will serve the interest of both developers and consumers alike while fostering a healthy growth environment. With this law in place, the vacation ownership industry should make a significant economic contribution to the market.”
As interest in timeshare grows, it is expected that Middle East residents will spend estimated by major players $1.2 billion a year for shared-ownership properties until 2020, with top markets including Saudi Arabia, Kuwait, Iran Egypt and the UAE.
Necessary approvals
The law requires developers or real estate companies willing to enter the market to apply for a timeshare license directly from the Real Estate Regulation Authority (RERA) with detailed plans of the project, company profile, background and pay a fee prior to marketing their developments. Upon approval, they can begin sales and marketing.
The authority requires commercial licensing of timeshare developers, sales agents, market companies and other engaged in offering timeshare in Dubai. A deposit of Dh1 million is expected as a precondition for obtaining such license.
What we say?
In Europe the trend emerged in the early 90ties.
The timeshare ownership proved it self as a vehicle that was great for lifestyle and regular usage but wholly ineffective for investment as owners faced :
He said, “We are pleased that this new timeshare law is now in place as we know that this is an essential step to establishing the timeshare industry in this new market. These protections will serve the interest of both developers and consumers alike while fostering a healthy growth environment. With this law in place, the vacation ownership industry should make a significant economic contribution to the market.”
As interest in timeshare grows, it is expected that Middle East residents will spend estimated by major players $1.2 billion a year for shared-ownership properties until 2020, with top markets including Saudi Arabia, Kuwait, Iran Egypt and the UAE.
Necessary approvals
The law requires developers or real estate companies willing to enter the market to apply for a timeshare license directly from the Real Estate Regulation Authority (RERA) with detailed plans of the project, company profile, background and pay a fee prior to marketing their developments. Upon approval, they can begin sales and marketing.
The authority requires commercial licensing of timeshare developers, sales agents, market companies and other engaged in offering timeshare in Dubai. A deposit of Dh1 million is expected as a precondition for obtaining such license.
What we say?
In Europe the trend emerged in the early 90ties.
The timeshare ownership proved it self as a vehicle that was great for lifestyle and regular usage but wholly ineffective for investment as owners faced :
- low liquidity of assets,
- high depreciation,
- restrictions on resale
- and no actual real estate ownership.
Now a days, hardly any one in the European Union knows what timeshare law means, let alone the size of investments.
Perhaps in Dubai the timeshare model will be reinvented and innovated in order to become feasible for investors.
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