It looks like investors and developers alike will benefit from the new strategy in Dubai for allocating building permits. The plan is expected to speed up the general approval system needed for securing building permits and therefore boost the real estate sector.
Analysts report that they expect the new strategy to simplify the process of obtaining government approvals to launch new build projects. Not only will investors and developers benefit, but it should increase overall confidence in the property sector in Dubai.
Efficiency and speed
Simpler and speedier processes will help to cement Dubai’s strong position of one of the best locations for property investment in the world.
The strategy was approved recently by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, as part of the plan to improve and enhance the position of Dubai as a central hub for construction and real estate.
Developers like Niall McLoughlin, senior VP at Damac Propeties, have welcomed the strategy. He says that it 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”.
Developers welcome strategy
It seems that other developers agree. The VP of marketing at Deyaar Development, Mona Al Tamimi adds: The new standardised process will enable the real estate sector to optimise government procedures throughout the different phases of construction. Given the tremendous number of projects currently in the pipeline leading up to 2020, time is of the essence.”
Simplifying processes like this will allow developers to concentrate on other aspects of their projects. It will also increase interest in Dubai development for investors. As well as saving time, the strategy should reduce delays and costs for developers, which will improve the ROI of individual projects. However, there could be a negative effect as well, as there are signs of over supply in some areas as it is, so more efficient processes could add to this.
About Samir Salya
Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing