We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Sat 10 Jan 2009 04:00 AM

Font Size

- Aa +

Rera moves to restore investor confidence

A new department has been established by Dubai's Real Estate Regulatory Agency (Rera) to oversee the collection of payments to developers that are tied to construction progress.

A new department has been established by Dubai's Real Estate Regulatory Agency (Rera) to oversee the collection of payments to developers that are tied to construction progress.

The Real Estate Development Trust Account Department will ensure funds are collected in line with contractual arrangements.

The department was formed to enforce a new rule banning developers from collecting more than 20% of the cost of a property before construction begins.

The rule, which came into force on January 1, is designed to restore investor confidence following a damaging end to 2008.

Confidence among buyers has been rocked by a series of project delays resulting from the onset of the global recession, and contractual disputes.

In a further move to restore investor confidence, developers in Dubai are to receive a ranking from Rera related to market experience and financial stability.

According to Rera CEO Marwan bin Ghalita, some 25 developers have been forced to cancel projects due to the credit crunch.

Arabian Business digital magazine: read the latest edition online

For all the latest construction 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.
SHIRAZ OSMAN 11 years ago

25 CANCELLED PROJECTS BY RERA , I WOULD LIKE TO KNOW DO THE INVESTORS OF THE CANCELLED PROJECTS GET THEIR MONEY BACK. THANK YOU

Mohammad Khan 11 years ago

25 yet-to-start-construction projects cancelled by Dubai's Real Estate Regulatory Agency (Rera). If it is true it is certainly a step in the right direction. In fact, the best way to stop the market from deteriorating further, and to help out the individual first time buyers, is to cancel all such off-plan projects of which construction has not already started, not to let construction of any new project be started, and to refund the money to investor after marginal deduction. Cancellation of yet-to-start projects will decrease the supply and uplift the market. And refunding the money to investor, after marginal deduction to cover the expenses in the paper-work involved, will certainly boost buyers’ confidence in Dubai market. And they may use this refunded money to buy ready-to-move-in property. But the names of these 25 cancelled projects should be disclosed to general Public, and the ways to get refund be announced.

om khatri 11 years ago

I request RERA to force Developers to align all future payments to progress of construction for all undelivered projects to further restore invester's confidence. Many developers are still harresing buyers for payment without much progress of projects under shelter of time bound payment terms given in contract. No Developer should be allowed to ask for further payments untill RERA certified progress report is given to buyer corelating to payments already collected by them. Hope for immediate actions for this by RERA