Real Heights Real Estate Broker

 

New real estate initiatives will allow market forces to work for tenants and investors.

The initiatives the Real Estate Regulatory Authority (Rera) is taking to boost investor confidence and increase transparency into rents in the Dubai property market must be welcomed. The planned online monitor that will allow investors to check the progress of construction projects in Dubai should help assure them that their money is being used to build shops and apartments. Investor concerns that projects into which they have put their money may not materialise, because of the financial difficulties facing some companies, have been a big drag on the Dubai property market.

The updating of the rental index to give tenants a better idea of the going rates for housing in the different neighbourhoods in Dubai will help tenants to negotiate for accommodation at rents more in line with market prices.

As demand for apartments drops as more accommodation becomes available, rental prices are beginning to ease, thereby reducing one of the biggest costs for those living in the city.

However, the cancellation or delay of some projects is set to reduce the number of new apartments being made available and this may result in prices strengthening again.

By increasing transparency in the property market, Rera will allow market forces to work more efficiently to the benefit of both investors and tenants.

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