Property developers in Dubai will be ranked by financial stability and market experience under a new system to be introduced, it was revealed on Saturday.
The ranking system being introduced by the Real Estate Regulatory Authority (Rera) is an attempt to reduce the number of developers and reinforce investor confidence in a sector badly hit in 2008.
“We’re evaluating all of the developers in Dubai,” said Marwan bin Ghalita, the chief executive of Rera in comments published by UAE daily The National on Saturday.
“All will be graded according to their financial liquidity, their experience in the market, the number of projects and the added value they give to the community. So before people invest in a project, they will see what the rating of the developer is and will be able to base their decision on that.”
The initiative will be followed by a regulation requiring developers registering off-plan projects to fully own the land first.
During Dubai’s explosive property growth in the past six years, the number of developers has risen above 100.
And investor confidence in off-plan projects has been harmed by several cases of developers failing to go ahead with projects or not to delivering on schedules.
Ghalita told the paper the number of developers in the emirate needed to be reduced to a more manageable level.
“There are too many of them,” he said. “We need to make the number smaller so we can control them more and they can serve the market better.”
Last week Rera announced a regulation banning freelance property agents from operating in Dubai.
Any broker who wants to set up business will have to be over the age of 18 and obtain a good-conduct certificate from Dubai Police. Brokers also will have to take a Rera training course.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.
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