Average Rental Rates for Residential Apartment

Source: Emiratestodayonline

UAE gets Dh1.7tr freehold injection

Members of Dubai Property Group (DPG) say Dh1.7 trillion has been injected into UAE freehold market with 30,000 units planned for delivery in 2007, but supply is still lacking for mid-income earners.

The group, which is made up of developers, consultants and real estate agents, also says the enormous growth in the real estate sector should be bolstered with legislation aimed at regulating the market and driving strong future growth

About 14,700 units were planned to be delivered in 2006 and another 30,000 units are expected for 2007.

Source: GulfNews

Dubai real estate ‘needs regulation’

The tremendous growth witnessed over the past five years in Dubai’s real estate sector should be bolstered with legislation aimed at regulating the market and driving strong future growth. This issue, as well as other developments, was the focus of debate at Dubai Property Group’s (DPG) members’ meeting.

The meeting was aimed at “providing a platform to help increase understanding of the market,” noted Adel Lootah, DPG’s executive director who moderated the dialogue. “Some 14,700 units were planned to be delivered in 2006 and another 30,000 units expected for 2007. This rapid growth requires legislation to help stabilise the market and elevate the trust of all parties involved,” noted Adel Al-Shirawi, CEO of Tamweel. “A total amount of dhs1.7 trillion was injected into the UAE’s freehold market without much regulation. Legislation, and regulations are required to bolster the sector’s strength.

“The recently announced property law is a positive tool that will develop a healthier market,” he said. Al-Shirawi also noted that a substantial increase in home loans occurred, where the dhs1.1 billion in mortgages extended to consumers in the year 2003 has grown to dhs11.5 billion today.

Simon Townsend, director of CB Richard Ellis said: “Dubai’s achievement in having a progressive property law is recognised internationally. However, concrete and detailed regulations are needed to govern the different aspects of buyer-seller rights and obligations such as providing genuine services and collecting service fees from a non-resident owner.”

Source: 7Days