Abu Dhabi, UAEFriday 20 September 2019

Dubai's new real estate committee will add value to projects, says Nakheel exec

A decree to set the committee’s mandate is expected soon

A new real estate committee set up by Dubai will focus on future projects over the next 10 years, said Aqil Kazim, chief commercial officer of Nakheel. Courtesy Nakheel 
A new real estate committee set up by Dubai will focus on future projects over the next 10 years, said Aqil Kazim, chief commercial officer of Nakheel. Courtesy Nakheel 

The changes brought in by the newly-formed real estate committee in Dubai will “add value” to the type of projects coming online in the future, an executive of developer Nakheel told Bloomberg TV in an interview on Thursday.

“The changes that I expect out of this committee’s mandate will add value to the type of projects that will come forward, going ahead, whether it is the hospitality side of the business, the retail, the commercial - all of these will come under the mantra of this committee,” said Aqil Kazim, chief commercial officer of Nakheel.

He also said the committee will set a strategy for Dubai, aligning the property market to the economic objectives of the emirate. A decree to set the committee’s mandate is expected soon, he added.

Nakheel is a member of the new higher committee announced by Vice President and Ruler of Dubai Sheikh Mohammed Bin Rashid on Monday, which is aimed at providing a better supply balance in the emirate's real estate market through greater collaboration between government-related entities and private sector firms. Other committee members include Emaar Properties, Wasl Properties and Dubai Properties. The General Secretariat of the Executive Council of Dubai and Dubai Land Department are also part of the committee, which will be led by Dubai’s Deputy Ruler Sheikh Maktoum bin Mohammed.

Dubai's real estate market has slowed in the wake of a drop in oil prices that began in 2014, as well as ongoing concerns about an oversupply of properties.

In a report last month, Dubai real estate listings portal Property Finder said a record number of residential units are expected to come online in the second half of this year, which will push Dubai property prices lower, making apartments more affordable.

Other experts are forecasting a recovery in the market, however, on the back of changes being made across the UAE, including new long term-visas.

On Tuesday, S&P predicted that Dubai's economy would pick up this year, with GDP set to grow 2.4 per cent, up from below 2 per cent in 2018. It also forecast growth of 2.5 per cent next year.

"A boost to tourism and related spending linked to Expo 2020 should drive somewhat stronger growth in 2020,” the report said.

It said new economic stimulus plans to promote small and mid-size enterprises and public- private partnerships, announced recently by the government, could gradually increase Dubai's long-term growth potential.

Updated: September 5, 2019 08:38 PM

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