Committee to decide on future Dubai property projects

Tuesday, 11 November 2008 8:05 AM

Future real estate projects in Dubai will need to be approved by a top-level committee set up by the government, it has been announced.

The committee will oversee and decide on the launch of projects in the emirate in view of the global economic slowdown, Emirates Business reported on Tuesday.

The committee consists of Dubai-based master developers and a few private developers, Nasser Al Shaikh, director-general of the Dubai Department of Finance, told the paper.

"For the first time, a committee has been formed to oversee the real estate development in Dubai and help synchronise projects of various developers with the intention of securing future supply."

He stressed that no current developments would be stopped and the committee would only look at projects still to be launched.

He added that the committee would not govern private developers who can continue with their projects.

"Master developers control 70 per cent of the supply in Dubai's property market and if all these parties work together then we can strike a balance between the future demand and supply. However, we are not trying to influence or control supply in the market," he told the paper.

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Posted by: bestman33 Thursday, 13 November 2008 12:24 AM[UAE]

remember the stock market in dubai , the real state market will follow, unlogical things with no fundamentals always crush in the end. sorry to say

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Posted by: Shilu Wednesday, 12 November 2008 3:16 PM[UAE] - United Arab Emirates

This is the fundamental difference that makes investors who have basic investment knowledge not to invest in Dubai. There is no transparency nor a real supply/demand mechanism that help set a fair price. The result was inflated prices that beat any city in the world that provide a better earning power to population from a diversified economy. Therefore there are many victims of the Dubai Real Estate bubble. It is sad that they still want to play the same game, but with whom?! There is no easy cash anymore. Is it going to work this round?! I highly doubt because other business sectors are asking the question, how long we (i.e. business and their employees) can survive in such high cost of living? Not too long since the Dubai promise when all of this started was: world class infrastructure, business opportunities, at affordable price. The business opportunities are not there, at least in Dubai, and the price is not affordable to anybody anymore.

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Posted by: Paul Wednesday, 12 November 2008 11:07 AM[UAE] - UAE

Monty got it spot on - a pyramid scheme is a perfect analogy. The construction industry has been the big driver of economic growth and population growth. Slowing or stopping construction to try to control future supply will have a devastating effect on present demand. Rents will collapse and heap even more downward pressure on property prices. In fact of course, the committee will be totally irrelevant, since none of these developers will be able to get any funding for new projects anyway.

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Posted by: Suzie Valerian Wednesday, 12 November 2008 8:39 AM[UAE] - UAE

Al Attar Properties promised that their Vue Du Lac Property would be ready in 2007. Then, it was shifted to 2008. Then 2009. Now, we are told the third quarter of 2010. Now with the global slowdown, I wonder how much more they will delay the project. Whom can we turn to for compensation? We have gone to the site. Construction has not even started there.

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Posted by: SR Wednesday, 12 November 2008 7:50 AM[UAE]

All this while the common tag line was: "In Dubai, demand outstrips supply by XX%, so the real estate sector should thrive and market forces are responsible for the high prices!!!" Then what is the haste to "balance the demand & supply", from a developer's perspective??? All this while the master developers, sub-developers, brokers, real-estate speculators etc. inflated the prices sans any fundementals and nobody cared about people who serously wanted to buy a home to overcome the greedy landlords, simply because they did not want to give a chance to the middle class. Now that the developers are getting affected, they are quick to regulate the prices!!!!!

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