Thursday, Aug 17, 2017
The new strategy for issuing building permits in Dubai is expected to benefit both developers and investors in the emirate’s real estate sector by speeding up procedures for getting approvals.
Property developers and analysts say they expect the strategy to streamline the process of getting government approvals needed to build new projects. This will also benefit investors and increase confidence in Dubai’s property market.
“Investors and developers will benefit hugely from easier and faster processes, which will in turn further boost Dubai’s already-strong position as one of the world’s key locations for investment. We wholeheartedly welcome this initiative as a major enhancement to Dubai’s real estate sector,” a Nakheel spokesperson told Gulf News.
The new strategy was approved last weekend by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. It aims to enhance Dubai’s position as a hub for real estate and construction.
Niall McLoughlin, senior vice president and Damac Properties, said the strategy will “streamline the real estate industry’s ability to acquire the documentation it needs to build faster, and will have a direct, positive impact on the sector’s growth”.
In an emailed statement, he added that the strategy will build on Dubai’s competitiveness.
Other developers in the emirate agreed with that view.
Mona Al Tamimi, vice president of marketing and corporate communications at Deyaar Development, said that such efforts will help the property industry advance amid major potential for future growth.
“The new standardised process will enable the real estate sector to optimise government procedures throughout the different phases of construction. Given the tremendous amount of projects currently in the pipeline leading up to 2020, time is of the essence,” she said.
Al Tamimi added that simplifying the permit process will allow developers to focus on more pressing matters.
Aside from making procedures easier and faster for developers, the new strategy is also expected to benefit investors in Dubai’s property market.
Craig Plumb, head of research for the Middle East and North Africa at JLL, said any moves to streamline regulations “will be welcomed by both developers and investors, and are likely to increase the attraction of the Dubai market to both [sides].”
He added that the strategy will improve confidence in the market, and result in higher levels of investment.
“If the new procedures reduce times [for getting different permits], this is a welcome initiative. We await the results of the research showing how much time will be saved, and a subsequent comparison of the before-and-after situation to quantify the level of time saving achieved,” Plumb said.
“It [the strategy] will also reduce costs and delays for developers. While this will increase the profitability of individual projects, it may also result in higher levels of development, which would be a negative for the overall market, which is already experiencing potential over-supply on some sectors,” he warned.
The new strategy is built upon three pillars; streamlining building permit procedures, unifying systems and requirements, and providing a ‘one-stop shop’ where all processes can be completed.
The three pillars are meant to ensure speeding up the process of acquiring permits. A government committee is currently working on putting unified building regulations for Dubai.
By Sarah Diaa Staff Reporter
Gulf News 2017. All rights reserved.