Developers Laud Plan For Federal RegulatorWednesday, March 25, 2009
The UAE government's latest plan to set up a federal real estate regulatory authority to co-ordinate efforts of existing local regulatory bodies has been welcomed by developers and property analysts. Federal real estate regulation is likely to make things clearer than having different rules and regulations for the seven emirates. The Dubai Land Department declined to comment until further details were revealed. However, industry experts and analysts welcomed the move saying a federal authority would increase investor confidence. "It's a step in the right direction and very clearly, where there are opportunities to align the regulatory environment of the various emirates [and] where possible, will probably contribute to investor confidence," said Blair Hagkull, the managing director of Jones Lang LaSalle. However, Hagkull also said that in the event of the authority being set up, it would be important for it to provide for "a harmonising of a new regulatory framework consistent with the nature of the UAE federation. It's an opportunity to harmonise and to ensure global best practice across the country which would be viewed positively by international investors," Hagkull added. Abed Junaid, the executive director of ETA Star Properties, said there had been a disuniformity" experienced previously in UAE property regulations, thereby creating confusion. The off-plan sector has caused particular concern among investors with regulations only coming in to play very recently.
There are a lot of developers who have projects across various emirates and there has been a bit of disuniformity in regulations. There are investors, too, that have projects across different emirates and I think a federal authority and uniformed regulations would bring stability," Junaid said. Last year's astronomical property boom in Dubai and the wider UAE saw prices rocket, and amateur developers coming in to the industry, wanting a bit of the property pie. The establishment of a federal real estate authority can only be to the benefit of all developers operating within the UAE. To have similar standards and guidelines on best practice and procedures across all emirates would ultimately be in everyone's best interests and we welcome any moves which bring more consistency and clarity to the changing and developing property market here in the UAE," said Peter Riddoch, chief executive of Damac.Source: Gulf News