For many years, there has been a lot of competition in the Dubai property market. This competition is mainly between the projects of semi government and private firms. To combat this, a real estate planning commission has been set up in Dubai. The aim of the planning commission is to regulate projects and to avoid competition. This news was announced on the Twitter account of ruler Sheikh Mohammed bin Rashid al-Maktoum earlier in the week.
Dubai’s New Real Estate Planning Commission
Dubai has always encouraged open and competitive real estate business. However, this has led to a heavy oversupply in the market. It hass caused residential property prices to drop by at least a quarter since 2014. As the property market is such an important part of the economy in Dubai – it accounted for 7.2% of Dubai’s gross domestic product in 2018 – it’s important that this is rectified.
Sheikh Mohammed bin Rashid al-Maktoum has placed Deputy Ruler Sheikh Maktoum bin Mohammed in charge of the new planning commission. The commission will take steps to stop similar projects being developed, to combat competition and to regulate projects. As part of the project, a Higher Committee of Real Estate Planning has been put into place. This committee will include a range of developers, including Nakheel and Emaar.
Director of The Dubai Land Department, General Sultan Butti bin Mejren, explained that controlling supply and demand will be the key to real estate sustainability for the coming years in Dubai. The Dubai Land Department will work with the new planning commission.