Dubai’s real estate developer and industry analysts are widely praising the emirate’s establishment earlier this month of a new Higher Committee of Real Estate, calling it a vital move to regulating the market and establishing a sustainable balance between supply and demand.
Announced by UAE Prime Minister and Vice President and Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum, the committee – which is chaired by Dubai Deputy Ruler Sheikh Maktoum Mohammed bin Rashid Al Maktoum – includes senior representatives of major property developers among its members and aims to avoid duplication of projects in the sector.
Speaking at this week’s Cityscape in Dubai, Steven Morgan, the CEO of real estate advisor Savills, said he believes the new entity is best described as a “planning authority” that will bring in much needed supervision to Dubai’s real estate market.
“To date, we’ve had no real control over supply coming into the market. Any developer can buy a piece of land, and there’s very little control over how much stock comes into the market,” he said. “That’s not the case in most developed, mature markets.”
In other markets and sectors – such as F&B – Morgan noted that governments often use licenses to control who can gain entry into the market. These checks and balances, he said, have been lagging behind in Dubai.
“I think the Dubai government and RERA [the Real Estate Regulatory Agency] have always been very much of the opinion that they’ll let the market find its own base and its own demand and supply. I think that’s a bit ambitious,” he added. “It’s good to have a planning authority that lets the city grow in the way that we want it to, and control the supply that comes online. That will make it healthier.”
