Dubai property sales poised to hit Dh140bn

The Dubai Land Department is expecting total sales transactions to reach Dh140 billion by the end of the year and hopes to reach the Dh100-billion mark by end of today (October 4), a senior department official said.

“We expect total sales to reach Dh140 billion by year-end. We believe we will touch the Dh100 billion market by today, which is a 10 per cent increase compared to the same period last year,” Mahmoud El Buri, DLD Senior Director of Real Estate Development Department, told Emirates 24|7.

The department had reported total sale transactions of Dh123 billion for 2010.

DLD Director General Sultan Butti bin Mijren on Tuesday also announced the launch of a real estate developers’ governance charter draft, aimed at attracting foreign investments, increasing the level of investor confidence and enhancing the efficiency of real estate companies.

“We have managed to carefully formulate corporate governance standards tailored for real estate companies. Other countries apply international standards on corporate governance in general.”

El Buri added that the implementation of corporate governance best practices on the companies and projects level will help in promoting confidence in Dubai’s real estate market.

“We are fully aware of the needs of real estate companies, property developers and evaluation companies to follow a more transparent approach and to commit to honesty in the reports and the prices they offer. Given the importance of the real estate sector internationally, the corporate governance plays an important role in attracting local and international investors,” El Buri said.

He clarified all real estate development companies, irrespective of their size, will have follow and embrace the charter.

The charter implementation will be in three phases — first will be the educational and experimental phase, which will last for three months, starting October; second will be the training and coordination phase, which will continue throughout 2012, and the third will be “obligatory” implementation phases, effective from January 2013.

“Those failing to adapt to the charter over the time will fined, Emad Eldin Farouq, Senior Legal Adviser, Land Department, said, adding, “The department was yet to finalise the maximum limit of financial penalties.”

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