Dubai Real Estate Market New Regulation

[Nawaz Shahzad]

hi guys

Speculation in Dubai’s real estate market driven by lack of regulation which now has been identify by analysts as major cause of hype in property prices. Real Estate professionals In the UAE, particularly in Dubai have praised the legislative procedures adopted by the government to regulate the real estate sector and impose tools that safeguard the interests of not only property developers but also investors. The decision to ban speculations in the off plan realty market is a vital and positive step, that will contribute to the stability of Dubai real estate market and boost its growth. What was happening earlier that suddenly there are more sellers and few buyers in the market and people are finding it difficult to sell properties? The correction which is taking place now has been long overdue. And will surely help eliminate speculators and help property market correct itself and stabilize, which is good for investors.

Everyone knows that the property prices in Dubai, which skyrocketed in the last 5 years, could push investors to other markets if correction does not take place. Analyst has already begun to compare housing in Dubai with those in the UK & other western markets. Therefore RERA (Real Estate Regulatory Authority) & Dubai Land Department have taken vital steps aimed at reforming the market. One of these is the Trust Accounts Law, which requires all developers to open trust accounts in which the amount received from off plan unit buyers are deposited, and not used until the project is finalized. Government believes that the real estate investments should be long term.

Nawaz