JLL Mena's Thierry Delvaux praises Dubai property balance team
Dubai’s Higher Committer for Real Estate Planning is a key step towards counteracting oversupply, JLL Mena's CEO says
The formation of Dubai’s Higher Committer for Real Estate Planning, chaired by HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, is “a positive step towards achieving a more balanced market for the emirate”, according to the chief executive officer of JLL Mena, Thierry Delvaux.
The formation of the committee was approved by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to maintain a balance between real estate demand and supply in the city.
According to the Dubai Ruler, the committee will ensure that “semi-government real estate companies in Dubai [do not] compete with private-sector investors”.
Commenting on the current real estate market scenario, Delvaux said: “High levels of recent supply are being felt across both the commercial and residential sectors and while not all proposed projects will complete on schedule, we do expect to see a significant spike in project completions across the residential and commercial sectors over the remainder of 2019.”
JLL said in a statement that one of the main reasons behind the decline of real estate rents and prices was “the excess of new supply to the market”, adding that in the last three years, more than 20,000 homes had been completed in Dubai every year.
Another 60,000 homes are scheduled to be completed in 2019 in Dubai, with completions in the retail sector expected to span 60ha this year.
“The extent to which this new committee can regulate and achieve an improved balance of supply and demand remains to be seen, but recognition of the current imbalance and the implementation of a plan to counteract this problem are key steps towards making a change,” Delvaux added.