Tanmiyat, the developer behind the Living Legends project in Dubailand, has suspended collection of all payments and installments until it has drawn up a revised payment plan for the project, it announced on Monday.The property developer has made the move in response to a new directive from Dubai’s property regulator that says every developer must pay 100 percent of the cost of the land before it can start selling ‘off plan’.
The Real Estate Regulatory Agency (RERA) directive, which came into effect last month, also stipulates that the developers must inject a minimum of 20 percent of the project value to commence construction, and payment scheme had to link payments with construction status.
In a statement Tamiyat said it had already informed its customers to stop making payments until the end of April this year, when the new payments scheme would be finished.
The firm had already complied fully with the first two parts of the directive, and was now revising the payment schedule of the Living Legends to fulfil the latter condition, the statement added.
“Tanmiyat is committed to remaining in compliance with all applicable laws. We already own the land for the Living Legends, and we have paid the land price in full to Dubailand; therefore, this new legislation does not significantly affect us.
What we have decided to do is to revise our payment schedule to reflect the project construction plan,” said Firas Al Attili, Tanmiyat Group's financial director.
“We believe that this new directive is an important step in building a solid foundation for the future of the UAE’s property market, which will ensure its continued growth and shore it up against fluctuations in the global economy,” he added.
Living Legends is a AED2.7bn multi-purpose development located in the Dubailand complex on Emirates Road - once completed it will extend over an area of 1,340m sqm.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.