Abu Dhabi’s property market must be better regulated with stronger enforcement bodies such as Dubai’s Rera to attract investors, industry insiders said at the Cityscape Abu Dhabi event on Monday.
The emirate has already drafted a set of regulations, said Gurujit Singh, COO of Abu Dhabi property giant, Sorouh. “It just has to go through the motions of approval,” he told Gulf Business.
Abu Dhabi recently introduced the Tawtheeq system, which means that all tenancies will need to be registered. “Registration of titles will be the next one to come into place,” he said.
The government is also aware of the need for an organisation similar to Rera, Singh said.
“The government knows that there is a need to have some kind of authority to enforce, implement and monitor the regulations,” he added.
Abu Dhabi must look at implementing regulations similar to neighbouring Dubai, said Paula Walshe, associate director of property consultancy Cluttons.
“Dubai’s Rera provides a voice for tenants and landlords, setting boundaries for the property markets, giving a facility for arbitration for disputes and overall, has given more credibility to the Dubai property market than perhaps it had two years ago,” she told Gulf Business.
“Abu Dhabi needs to recognise that Rera has been a very positive thing for the Dubai property market and perhaps they need to look at how they can implement some of those things,” she said.
The emirate’s property market is oversupplied and a further 28,000 to 29,000 units are expected to enter the market this year, which will put additional pressure on demand.