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djaan
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Real estate regulatory body in Dubai set to get tough with developers
Friday, 20 February 2009
RERA to get tough with developersProperty developers in Dubai who fail to meet standards, don't deliver on time and construct poor quality buildings are to be named and shamed.
The move from the Real Estate Regulatory Authority is aimed at addressing a growing number of complaints about delays, defects and standards.
Chief executive Marwan Bin Galita said the regulatory body was not going to let developers get away with shoddiness.
He has personally told property developers that they need to be more flexible and communicate effectively with real estate investors, especially in the economic downturn.
He said that while developers would be allowed to retain 30% of the value of property, as is allowed in current contracts, if investors sought to pull out of projects. But he also said there should be exceptions.
'Exceptions could be made if the investor is unable to continue to pay due to some genuine reasons, such as loss of pay, job loss. This should be considered,' he said.
Such exceptions would have to be discussed and approved by RERA. 'They will be handled on a case by case basis,' said Bin Galita .
He also told developers that RERA had been particularly active in recent months as it strived to restore investor confidence to the market.
There are also discussions about a real estate committee being formed by professionals from within this sector serving as a platform for consultation prior to the issuing of new regulations and guidelines.
Key areas for consideration would be whether or not property investors should receive compensation if a project is delayed and if heavier penalties should be imposed on developers who fail to deliver on time.
with regards
Djaan
Real estate regulatory body in Dubai set to get tough with developers
Friday, 20 February 2009
RERA to get tough with developersProperty developers in Dubai who fail to meet standards, don't deliver on time and construct poor quality buildings are to be named and shamed.
The move from the Real Estate Regulatory Authority is aimed at addressing a growing number of complaints about delays, defects and standards.
Chief executive Marwan Bin Galita said the regulatory body was not going to let developers get away with shoddiness.
He has personally told property developers that they need to be more flexible and communicate effectively with real estate investors, especially in the economic downturn.
He said that while developers would be allowed to retain 30% of the value of property, as is allowed in current contracts, if investors sought to pull out of projects. But he also said there should be exceptions.
'Exceptions could be made if the investor is unable to continue to pay due to some genuine reasons, such as loss of pay, job loss. This should be considered,' he said.
Such exceptions would have to be discussed and approved by RERA. 'They will be handled on a case by case basis,' said Bin Galita .
He also told developers that RERA had been particularly active in recent months as it strived to restore investor confidence to the market.
There are also discussions about a real estate committee being formed by professionals from within this sector serving as a platform for consultation prior to the issuing of new regulations and guidelines.
Key areas for consideration would be whether or not property investors should receive compensation if a project is delayed and if heavier penalties should be imposed on developers who fail to deliver on time.
with regards
Djaan
