Dubai Set To Launch Its First Official Property Price Index

by commitbizadmin 26, Jun 2020

Dubai Set To Launch Its First Official Property Price Index

Dubai’s Land Department, DLD and Property Finder signed a Memorandum of Understanding (MoU) for the launch of the first Official Sales and Rental Price Index of Dubai. The two entities collaborate to create an index called Mo’asher, meaning index in Arabic. The first edition of this index formed by the collaboration is planned to unveil during the third week of September. The statement added that the move aims to enhance transparency in Dubai’s real estate sector.

The Memorandum of Understanding was signed by the director-general of DLD, Sultan Butti bin Mejren and the founder and CEO of Property Finder, Mr Michael Lahyani. The index will be available to the public on both DLD and Property Finder’s official websites.

The Property Price Index

Users can view and compare prices and details of various properties in each area. The index also provides the facility to compare various areas in the city. The user can also observe trends in real estate in a particular area dated back to as early as 2008. The details include the average price per sale, average annual rent for freehold, non-freehold, the average price per square foot per sale, and leasehold properties.

Who said What?

Talking about the MoU, Sultan bin Mejren said that Mo’asher is the official real estate index for Dubai that provides consumers with better insights to help them when taking property-buying and renting decisions. He also mentioned DLD would provide data for Mo’asher on a monthly basis.

Micheal Lahyani added saying the Dubai government’s willingness to partner with the private sector to create the Mo’asher initiative is an essential first step in showcasing to the world the level of transparency that must be standard across the region.

He added saying that launching Mo’asher with DLD was their priority following the creation of Data Finder to deliver enhanced data transparency to the market. With its successful launch, he said they are looking forward to working with other government entities in the UAE region to replicate and tailor an Emirates-wide house-price index to further enhance their goal to enhance and educate their consumers.

Property Finder’s Director of Research and Data, Lynnette Abad said that the index is based on a scientific methodology that is being powered by an enriched and fully comprehensive data set provided by Property Finder and Dubai Land Department.

He adds saying the introduction hopes to enhance transparency in Dubai real estate market by providing accurate pricing data to consumers. He also opines that in this way, both renters and buyers can make more informed decisions during their real estate journey.

He concludes saying Mo’asher will be the source of truth when it comes to real estate prices and trends in Dubai; hence investors will have confidence knowing the pricing trends they are receiving is not speculative but rather factual based on the index.

The CEO of the Real Estate Promotion and Investment Management Sector at DLD, Majida Ali Rashid said that the market would be able to witness how data can enhance openness within real estate sector with the monthly publication of Mo’asher.  He adds saying that they are keen to sign agreements with esteemed partners like Property Finder who have the expertise to reach an increased level of transparency, allowing them to attract further confidence from local, regional, and global investors into the market. He concludes that hence supporting the vision of the wise leadership to make Dubai the smartest and the happiest city in the world.

This index, along with many others, makes Dubai an ideal place to start a business and earn profits. This move helps not just real estate broking firms but also entrepreneurs interested in opening a branch office or rent an office space in the city.

Along with the Property Price Index, there are a few more factors that make Dubai a business hub. Some of the primary reasons why you have to consider opening your firm in Dubai are listed below.

  • Low Acquisition Cost
  • No Annual Property Tax
  • Good ROI
  • Increased business due to Expo 2020
  • Lenient legal formalities to rent a place
  • Less cost with more amenities
  • Flexibility in market
  • Many options to choose from when it comes to renting a space
  • Excellent choice of location for business with global business opportunities

More DLD News

DLD collaborates with many other departments in the region for the overall development and to provide the best services possible for its citizens and expats. Some of those collaborations include the following.

DLD collaborated with Dubai Police to initiate a new smart home security system. The department also signed an MoU with Al Masraf to manage and service OA accounts. In other news, DLD also strengthened its ties with Ras Al Khaimah government entities.

For more UAE news, business-related information, and business setup solutions have a word with our experts. Contact us now- we’d be happy to help.