Dubai to curb pace of construction projects as prices fall

Dubai’s ruler has issued a directive to curb the pace of new real estate construction projects amid falling demand and property prices.

Sheikh Mohammed bin Rashid Al Maktoum ordered on Monday the creation of a committee to study the needs of the real estate market, evaluate all future projects and control the pace of projects so supply does not outstrip demand.

The move comes amid a slowdown in the economy and a slump in real estate prices. A report by UAE-based Property Finder found that Dubai apartment and villa sale prices for the first half of 2019 were down around 12% compared to two years ago.

Developers, however, continue to build at breakneck speed, and have completed around 21,000 residential units in the first half of the year.