The Dubai Land Department is studying a proposal to implement a centralised real estate exchange that would radically shake up the way property is bought and sold in the emirate.
Under the proposal, real estate would be traded in a similar way to shares on the stock market. Prices would react to supply and demand, and individuals would approach an agent – or broker – who would undertake a property purchase on their behalf.
‘The trading in real estate would be similar to that on the stock market,’ a spokesman for the Dubai Land Department told ArabianBusiness.com. ‘No other place in the world has a real estate exchange. It would be unique.’
‘Hopefully, the end result would be a centralised system. It would be easier to manage: in Dubai there are 1,800 real estate agents and over 3,000 brokers – there are so many people involved.’
Such a system has the potential to regulate the property market and estate agents, and give a true reflection of prices. ‘We don’t have the intention of controlling prices in the emirate,’ the spokesman pointed out.
A proposal will be presented to the government this year, according to Juma Bin Humaidan of Dubai Land Department, quoted in yesterday’s Al Ittihad newspaper. It is possible that the exchange could be launched as early as 2008.
Al Ittihad also said that the launch of the study was approved by Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai and UAE Prime Minister and Vice President.
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