Damac parking blip

Investors have come out in force to criticise new legislation by Dubai's Real Estate Regulatory Authority (Rera) that stipulates residents must have a paid for car parking space with their property.
Damac parking blip
By Paul Collette & Elsa Baxter
Sat 28 Mar 2009 04:00 AM

Investors have come out in force to criticise new legislation by Dubai's Real Estate Regulatory Authority (Rera) that stipulates residents must have a paid for car parking space with their property.

Since last week when ConstructionWeekOnline wrote about the new rule and how it is affecting investors of the Crescent development, in the International Media and Production Zone, scores more disgruntled investors have emailed or posted their comments online.

They say they weren't told about the rule, which specifies residents must buy a parking space to register with the Land Department. Failure to register will prevent them from renting or selling their property.

Kieran Donovan wrote that he was forced by Damac to buy a parking space in the developer's Lake View Tower, in Jumeirah Lake Towers.

"They wouldn't even give me a handover until I went to the bank and got a manager's cheque. I had to pay whatever was asked of me as I will be homeless next week," he stated.

However, one reader has stated that the ruling has since been withdrawn, further adding to confusion.

Investor Jerry Ascione, who bought his apartment in the Crescent in 2006 for US $164,000 (AED602,000), spoke exclusively to ConstructionWeekOnline.

"I'm over from the US checking on my studio apartment after handover," he said. "This is all news to me. When I bought the place I asked Damac's then facilities management representative if I needed to buy a parking space - he said no, I didn't.

Ascione says he's now faced with a bill of up to $31,300 bill for a parking space.

In response, Niall McLoughlin, Damac's senior president, corporate communications, said: "The Dubai Land Department has recently issued all developers with a circular stating that it will not register any unit unless it has a paid for car parking space.

"This is a recent ruling by the Dubai Land Department and applies to all developers in Dubai, and we are caught in the middle.

"Fortunately Damac still has some parking spaces available. We are offering customers who did not originally buy a space with their units the opportunity to do so at an attractive rate, with pricing dependant on location."

Rera has as yet been unavailable to comment.

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