By Joanna Hartley
A team from Dubai's real estate regulator will visit sites to gather information for buyers.
Up to date information on the progress of property developments, including whether a project has been delayed or cancelled, will be made available to buyers in Dubai as part of a raft of new government measures.
The scheme, run by the Real Estate Regulatory Agency (RERA), will offer buyers monthly online reports of their property’s progress including photographs of how far along the development is.
Information will be gathered by s team of RERA engineers who will visit Dubai building sites to spot check on progress, according to UAE daily The National.
The scheme will cover 695 projects with escrow accounts out of total of 875 projects registered with RERA.
A limit on the number of new properties coming on the market, which will be achieved by curbing the number of government permits issued to developers, will also be introduced by RERA and other agencies.
The plans comes after months of speculation about the robustness of the real estate sector with estimates that up to 53 percent of developments had been put on hold or cancelled, as a result of the global economic downturn.
RERA is now looking to restore confidence in the industry after receiving more than 1,000 written and e-mailed complaints since January last year, according to Marwan bin Ghalita, chief executive of the agency.
“In a booming market, everyone makes mistakes. Now it is the time to regulate,” he said.
“Three years back no one wanted to come to us because they were busy selling and flipping property, but nowadays everyone says, ‘Please protect us’. This is our job,” Ghalita added.
About 31,003 units were expected to be ready this year compared with 29,319 last year.
However, RERA is planning to cancel 27 projects this year, making 29 cancellations in total that would see the expected supply fall by up to 20 per cent - a cut that could hit 40 percent by 2010, Ghalita revealed.
Dubai Property Investors Group, a coalition of more than 350 investors formed after sales began to slow last year, welcomed RERA’s actions.
“If it’s done properly it is excellent news,” said Nigel Knight, a co-founder of the group.
“People were paying 60 to 70 percent of their payments even through construction hadn’t started yet,” he added.
The monthly property development reports will be available from the RERA website http://www.rpdubai.com/ from next month.
RERA should provide an obligatory(!) Sales Contract Form for ALL property transactions. This way the investors will be protected against developer,s tricky contracts. Also the developers should be obligated to present the Master Contract to the investors AT THE TIME OF RESERVATION(!!) and not 4-6 months later. Also the ,,Sign or loose deposit,, method should be forbidden. RERA also should provide a Legal Service for investors to give them advice on their contracts. I sent already twice a question on RERA.s website asking if regarding UAE Law a contract is valid or invalid if the Developer,s Sales Contract DOES NOTt(!!) contains ANY(!!) TIME OF DELIVERY obligation of the Developer?! This way the Developer can not break the Time of Delivery agreement because there is NO ANY settled in the contract. RERA did not answer my question at all!! Such a ,,no service,, mentality destroy the remaining - already week - confidence of a existing legal system in UAE.
I have one good suggestion to RERA and developers . If every developer has Surveillance Cameras onsite in every project they build then RERA and investors will be monitoring the progress of the project at anytime . Anyone can access it from the internet from anywhere in the world . This will show confidence and real time reports . Thx Hossam
Hi, I am one of the investors who bought with Schon Properties in LAGOON project (not THE LAGOON) and delivery date was supposed to be December 2007. Now, we are in Year 2009 and still Zone 2 where my units fall still not even built. We never know where tomorrow we will be with this financial crisis. Who will protect me as an investor and does the contract still give me the right to issue a visa on my contract. I heard that this is not given anymore. Is anyone can advise in return. RANIA,
Dear A.R.J rera is the process of finalzing standard comtract that you talked about it. It si coming very soon.
i have apartment in icon2 at hand over it was delay by one year in april2008 in my contact copy hand over time thay have taken maintenence fee 5,275.17 master comunity charges 2,823.14 estimated deva bill for commen area 4,519.68 palm district cooling charges 4,082.29 estimated palm district cooling usage charges 5,301.68 palm district cooling deposit927.79 land registration charges 10,069.80 processing and documentation 900 total 33,899.57 it is a 2bed room flat value of 967,980.00 from vakson in jlt icon 2 they r telling this is rera price iam cofused please help me land registration paper is not ready it will come in 2 months help me