October 06, 2007, 00:42
Dubai for several years according to analysts will blast as they have been anticipating it in Dubai's market. Emirate's Central geographical location considered to be the main ingredients for those people who wants to invest on a holiday destination.With its beachfront accommodation, fine dining and shopping malls.
But so far the timeshare industry has not developed to the extent that many had anticipated.
UAE penetration rate for resort timeshare ownership among all income-eligible households is estimated at around 2%, despite expectations that it will overtake Orlando as the world's largest timeshare market this evidence that the local market remains untapped.
The continued absence of a regulatory framework governing the industry remains the biggest obstacle for investors in local timeshare resorts.
“The market here is relatively non-existent, the main reason being that there are no regulations in place,” said Craig Johnson, general manager at real estate consultancy Landmark Properties.
Potential
"But it could become the next big phase of the Dubai property market and will open the doors to a whole new class of buyers who want to holiday in Dubai and want a piece of the property market, but don't want to stay here all year. The introduction of regulations will enable this to come to life."
Timeshare vacation ownership and variations such as vacation clubs and fractional ownership, already enjoy huge growth annually, driven by people's desire for affordable holidays.
On a global scale, the industry boasts over Dh20 billion in turnover, Michael Tolan, CEO of Platinum Resorts International, based in Beirut, said in a statement. Industry experts estimate potential timeshare sales in the Middle East at Dh2 billion annually and growing.
For several years, deluxe apartment operators, property developers, hotel owners and serviced apartment operators have been eagerly awaiting a Dubai timeshare law, expected to focus on consumer protection.
It could provide details of a cooling off period, during which the buyer can withdraw from a sales contract, as well as the process involved in cancelling a contract.
Chris Jackson, managing director of Emerald Vacation Club, which is bringing 48 timeshare units onto the market in Al Barsha, agreed that the industry in Dubai is currently in its infancy.
He linked this to low excess supply of properties, the fact that entertainment attractions in projects such as Dubailand are still under construction and the industry's tendency to hold off until laws are passed.
"Many credible companies don't want to get involved until they know the ground rules," he said.
But he stressed that several global players in the timeshare business, such as The Marriott Vacation Club, already operate in Dubai, confident that their self-imposed regulations will comply with the upcoming law.
Many others are currently building timeshare resorts, which could enable the industry in Dubai to fulfil its expectations.
What is timeshare?
Timeshare is defined as buying the right to spend a set period in a holiday property. It may also give buyers the right to exchange for properties in other resorts.
