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Abu Dhabi Plans to Set Up Property Regulator

ABU DHABI - The Abu Dhabi has planned to establish a real estate market regulator after the success of Dubai’s Real Estate Regulatory Authority (RERA), which was established in July, 2007.

A regulatory authority will be established in Abu Dhabi within the next few months, Dr Jawaan bin Salem Al Dhahiri, Chairman of the Municipal Affairs Department in Abu Dhabi told Khaleej Times.

Dhahiri said the new authority will also eliminate the realty brokers in general, and the hike in rents in particular. “This will contribute to the return of the price of property levels to their normal in this year”, Dhahiri added.

“The aim of setting up the authority, the first of its kind in the emirate, is to chalk out an integrated system that streamlines property rent, sale and purchase dealings, including suggesting legislations and rules that lead to stability,” Dhahiri said.

“It was felt that the properties sector was in dire need for such an authority to curb the unscrupulous traders in this market, which much affects the people by and large, and taking into account that real estates sector was the main cause of the state of inflation the country is experiencing in general, and not only Abu Dhabi.”

Ajman has already announced to establish a body along the lines of Dubai’s RERA early this year to better regulate its property market, said Mohammed bin Ahmed bin Omeir, director of Ajman Municipality’s planning and survey department.

The RERA in Dubai, the first of its kind developed in the region, is responsible for licensing and managing Dubai’s stellar real estate market. It was created to improve transparency and trust in the sector and even resolved disputes until this responsibility was passed to a specially developed property court system in October.

“The new authority will definitely result in the fall of rents in the country, and not only in Abu Dhabi, as it will work, and gradually, not to let the rents shoot up, while the number of construction projects will increase,” Dhahiri said adding that this will result in the fall of rents, thus reflects the keenness of the UAE leadership on achieving stability for the citizens, by starting with the stability in realty sector.

Despite the fact that property boom has ended last year after the current financial crisis policy makers are still working to regulate the important segment of the economy as Abu Dhabi is the third Emirate to announce property regulator after Dubai and Ajman.

· adel@khaleejtimes.com