Saturday, August 20, 2011

Regulation of real estate development necessary in UAE

Lt. Gen. Dhahi Khalfan Tamim, Commander-in-Chief of Dubai Police has suggested caution on real estate development in the emirate, while seeking regulation on new projects.

Speaking during a press meet in Dubai, he said “Real estate should be allowed to slow down. We should calm down construction and introduction of more foreign workers”.

The real estate market in Dubai witnessed a boom period, until the global financial crisis hit the market in 2008, when housing prices and rents fell by more than 50percent in the emirate. Several high profile projects were shelved by developers.

However, aiming to lure more investors, the government came forward offering three-year visas to owners who own more than Dh.1mn worth properties. These visas will have to be renewed every six months. Further, international and local lenders are cutting down mortgage rates to draw in more expatriates.

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