Dubai property litigation drops on eve of new decree

Impending property decree by Dubai Executive Council will increase transparency, say experts.

Litigation cases in Dubai's property sector have eased, and a soon-to-be published property decree is a step toward better transparency, a lawyer at an international law firm said yesterday.

"After the initial wave of claims, I have witnessed a drop off in the number of claims that are going to court," Clyde & Company's Richard Bell said. "We probably had dozens of cases back then but now we just have a handful."

Efforts by developers to accommodate purchasers in the light of the global economic downturn – including lowering purchase prices, or back loading instalment payments towards the completion of projects, were helping reduce the number of cases, he said.

"There is also uncertainty as to what can be achieved through litigation for the developer and purchaser, and there is a risk that they will be found liable. So people are being more careful to see what happens and if the development actually gets built," Bell said.

Bell said a new decree by the Dubai Executive Council, which is expected to be published in the next few months, will contain provisions giving the Land Department the power to investigate delayed projects and determine whether they should proceed.

There will also be a set of criteria by which a development will be assessed, and provisions enabling purchasers to terminate their contracts under certain circumstances, he said.

"They [the Land Department] have that power at the moment, but the purpose of this decree is to give more clarity in the case of developments which are not proceeding," Bell said.

He added that the Land Department and Dubai's Real Estate Regulatory Authority (Rera) are taking steps towards striking a balance between developers and purchasers.

This, and another decree announced late on Monday which regulates ownership of industrial and commercial plots granted to UAE nationals, will help improve transparency, which is key to attracting investors to Dubai's property sector.

"I think transparency is improving... Dubai in particular is way ahead of many other markets in the Middle East," Bell said.

"The Land Department is one of the more transparent government departments... It is listening to purchasers. Probably not as much as purchasers would like but what we are seeing is that they are trying to catch up with conditions in the market as they actually are."

The property sector has been affected by the global economic crisis and projects across the world have been delayed.

 

Burj Viewing deck still shut

 

The viewing deck of Dubai's Burj Khalifa, the world's tallest building, remains shut for maintenance, an employee said yesterday, a month after its elevator became stuck, trapping passengers.

The employee in the tower's information office said the viewing deck remains closed for "maintenance".

No date had yet been set for its reopening, the employee said. (AFP)

 

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Comments

  • kishor 18 March 2010 10:39
    How about the Ajman, if any one has issue about this kind, as Ajman lot of cases are pending further to that lot of people can't pay court charges. How this matter is to be dealt. As thought people have lost lot of money on top they can't afford to have court charges. Please advice

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