The decision to seize Schon Properties’ assets is only “the tip of the iceberg”, with more enforcement likely from Dubai Land Department (DLD) against defaulting developers, the head of Beaver Gulf has claimed.
“There are some developers who are at the same default levels as Schon,” Rajesh Kumar Krishna, chairman and chief executive officer of the Dubai-based contractor, said in comments published by Construction Week Online.
DLD revealed last week that it was seizing all assets belonging to UAE developer Schon Properties.
According to Dubai Media Office, the decision was aimed at "protecting the rights of investors in light of Schon Properties’ actions of exploiting investors by refraining from depositing their money in [an] escrow account".
Commenting on the action, Krishna told Construction Week Online: “Deciding to take strict action against defaulting developers is an additional step in the right direction.
“I fully welcome the DLD move. If there are [other] developers who have defaulted [similarly] to the point of Schon, then there should be more seizures and stricter enforcement action taken to weed out all the unwanted elements in the market and raise investor confidence.
“Such developers do a lot of damage to the brand name of Dubai, and more specifically, its real estate sector, at the expense of the good and genuine developers in the market.”For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.