The UAE has evolved from a speculative real estate market to one that is focused on long-term gains
Compared to the record-breaking project launches, wild price appreciation and speculative investment of the UAE real estate industry's formative years, the last 12 months has been characterised by a greater sense of maturity.
In Dubai in particular, new project launches no longer happen on a weekly basis; price appreciation has settled down in some areas and the regulatory framework governing the sector has taken shape.
"Over the past nine months, the residential property market in Dubai has continued to mature," Sana Kapadia, analyst at investment bank EFG-Hermes, says in a report.
"The four strongest signs of change are a lower rate of price appreciation, improvements in the legal framework, an increasing level of activity in the secondary property market and a reduction in the number of new project launches."
That isn't to say that the UAE hasn't had its fair share of new mega-projects and headline grabbing events since National Day 2006. Limitless, a Dubai World company, recently launched the Arabian Canal project, which will turn the Jebel Ali landmass into an island.
Earlier in the year, world number one golfer Tiger Woods said he would develop his first golf course in partnership with Tatweer, a member of Dubai Holding.
In terms of important milestones, the Burj Dubai officially became the tallest building in the world and work started on its glass exterior after a long delay.
Meanwhile, the Jumeirah Beach Residence complex in Dubai Marina was finally handed over to buyers.
In Abu Dhabi, Aldar Properties announced a tie-up with Hollywood film producer Warner Bros Entertainment and Abu Dhabi Media Company to roll out Warner Bros theme parks in the region. Aldar also launched its new headquarters at Al Raha Beach, which will be the Middle East's first spherical building.
Despite these important project launches, the last year will be remembered for some ground-breaking new regulations, especially in Dubai.
The year started with the introduction of the Brokers Registration Law, which aimed to clean up the property brokerage industry.
The law demanded that brokers register with a government department, giving officials a database of firms and individuals operating in Dubai.
In return they receive a registration card and government approval to transact real estate deals. At the time analysts said it would weed out as many as half the individual property agents operating in Dubai.
In February, the first apartment in Dubai was officially registered in an owner's name, signalling a major step towards widespread ownership registration of freehold properties.
But controversy hit the sector the following month when numerous buyers in Dubai's property market said they faced hidden costs when registering their apartments and villas.
Those who invest in freehold property and want to register the title have to pay Dubai Land Department a fee, but many residents said they had been charged a separate fee on top of this amount by developers or owners, which totalled several thousand dirhams.
The UAE construction materials industry was the next subject of controversy. Companies manufacturing products such as concrete blocks and road kerbs said cement prices shot up by 15 to 20 per cent, resulting in halved margins for some organisations.
Some companies accused cement manufacturers of holding back supply to drive up prices during the intensive period of construction activity in Abu Dhabi, Ras Al Khaimah and Dubai - a fact that contradicts the UAE's rules. The UAE Ministry of Economy responded by slapping a price ceiling on cement.
Dubai's real estate sector then witnessed one its most important regulatory moves to date.
The chances of cowboy developers raking in buyers' payments for new property and running away became remote after the eagerly-awaited Law No 8 on Guarantee Accounts (commonly known as trust or escrow accounts), was introduced.
Under the law, people buying properties in Dubai off-plan make their payments into special accounts managed by banks, instead of directly into property developer's pockets.
September saw the first day of trading for Deyaar, Dubai Islamic Bank's real estate arm. The company accounted for more than 88 per cent of the value of traded shares in Dubai, and about 83 per cent in the UAE markets on its first day.
The year seems to be ending on a high note. Limitless, the global real estate arm of Dubai World, last month unveiled a 75-km canal that will reshape the southern part of Dubai and transform the massive Jebel Ali landmass into an island.
The Arabian Canal project will be built in two parts - an $11 billion (about Dh40.39 billion), 75km canal which will snake from the Palm Jebel Ali to the Palm Jumeirah and a $50 billion (about Dh183.6 billion) "city within a city" that will cover 20,000 hectares along the canal's southern flank. Maturity meets renewed ambition, on a very grand scale.
