Monday, March 29, 2010

Dubai's real estate regulatory agency (RERA)eyes new laws on property valuations

Dubai's real estate watchdog is looking to bring in new legislation to regulate how house valuations are conducted, following the slump in prices which saw well over $100bn wiped off the emirate's property market assets.
Dubai's real estate regulatory agency (RERA) is planning to publish new guidelines for the industry by mid 2010 in a bid to create a more professional real estate valuation system, a senior official has said.
Mohammed Khodr Al-Dah, head of RERA's Land Department Real Estate Appraisal Centre (Taqyeem), said: "Having recognised the increasing importance of accurate evaluation of real estate assets, RERA is currently working with the Dubai Land Department and other interested parties to draft appropriate legal guidelines to regulate how valuations are conducted."
His comments, published in the latest MENA House View report by Jones Lang Lasalle, come as property prices in the emirate have seen declines of more than 50 percent from 2008 peaks.
In the report, Jones Lang Lasalle said that the introduction of more professional valuation standards was "an essential precondition for rebuilding the trust and confidence required for the recovery of real estate markets across MENA".
"Accurate and regular valuations comprise an integral part of the sound investment and risk mitigation strategies that investors need to adopt as the real estate market faces continued uncertainties and only selected stability in 2010," the report added.

Jones Lang Lasalle said that while valuations were not the sole answer to reversing a trend of falling transaction volumes, they could "provide a catalyst for the improvement in certainty and transparency required for the markets to recover".