Dubai real estate is slowly improving its condition. The recovery of the economy has been slow but the indicators have shown a lot of resilience in recent few months. Dubai’s government has been doing everything in its power to reinstate the lost confidence of investors, developers, and other stakeholders in Dubai real estate. Private companies have also been taking limited initiatives in this regard to help the struggling Dubai real estate market out of the crumble.

A new scheme has been launched by Smith & Ken, a top real estate agency in Dubai. This initiative is aimed to help all those investors who haven’t been able to recover their money because of their investments being plunged into unplanned property constructions. This is the first of its private initiative aimed directly towards the investors.

According to the scheme, the company is offering similar property to an investor who has already invested into one of its off-planned properties somewhere else. Any investor who is interested in utilizing the facility will just have to file an application with Smith & Ken for the RERS (Real Estate Recovery Scheme). Once the application has been accepted, the company will invite the investor to choose from any of the other company properties as an alternate. Once the investor has selected that property, the company will deducted the money already paid by the investor and settle for the rest of the amount according to the situation.

This initiative has positives for both the sides. As new sales are not coming fast, the revenues of the real estate developers have plunged, seriously threatening the cash inflows needed for newer projects. Investors who have stuck their investments into off planned properties, has made it difficult for them to sell off those properties. The problem therefore has been the reduced demand and supply combined with the reduced liquidity in the market. Once the initiative takes off, this has all the potential to set an example for other developers to follow. Investors will be able to buy hotter properties while the developers will be able to help themselves get more cash for carrying out their operations and future developments. If this turns out into a success story, Dubai real estate market should look at it for exploring newer possibilities to solve these kind of problems.