By Parag Deulgaonkar
Sultan Butti Bin Mejren said $20.9 billion of transactions in Q1 indicates Dubai property market is "preparing for a new phase of momentum"
Dubai Land Department on Monday confirmed it is working on a new rent law, which is awaiting clearance from the legislative committee.
The primary aim of the law is to reduce the number of landlord-tenant disputes and stabilise the volatility in the rental market. Sources previously told Arabian Business that it is likely to come into effect by June.
Marwan bin Ghalita, chief executive officer, Real Estate Regulatory Agency (Rera), said the new law, which is currently being reviewed by the legislative committee, will help to create a new index for asset classes such as malls and education and health properties. Currently, the Rera index covers residential, commercial, industrial and staff accommodation.
Ghalita revealed the DLD is planning to introduce new regulations for real estate investment trusts (Reits).
The focus, he said, was on attracting more overseas institutional funds through Reits, as individual investors tend to pull out of the market at times of economic uncertainty.
“Institutional investors take a more long term approach and so we need more of these investors,” Ghalita said.
Meanwhile, Sultan Butti Bin Mejren, director-general, DLD said the value of real estate transactions rose to AED77 billion ($20.9 billion) in the first quarter of 2017 from AED54.7 billion reported in January to March 2016.
“This indicates the real estate market in Dubai is preparing for a new phase of momentum and the rise and strong results achieved during the first quarter was not surprising but expected, especially with the sustainable growth that the real estate market is currently witnessing,” he said.
I can only hope that the new law is a serious overhaul and will introduce substantially more professionalism into the market. The current rental committee is ineffective, incompetent and very poorly run. The existing law is not enforced. Unless this changes Dubai's real estate sector will not reach its full potential or enjoy public confidence.