Rera chief blames media for real estate sector woes

Incorrect reporting has affected market sentiments, Ghalita

Sameh Awadallah and Parag Deulgaonkar

Published Sunday, October 10, 2010

Rera chief blames media for 'realty' woes. (FILE)

Media is to be blamed for the "damage" of Dubai's real estate, says Real Estate Regulatory Agency (Rera) chief.

"The real estate sector in Dubai has been hurt by the journalists and media publishing incorrect data on the market. The media is blamed for rising real estate prices... as correct data has never been published," Marwan bin Ghalita told a conference on Sunday.

"They did not check the accuracy... did not get the correct information which is one of the prime foundations for making any decision. Journalists did not approach official sources to get the right picture."

In 2007 and 2008, projects were being announced on a daily basis with listed and private developers announcing billion-dollar worth projects at press conferences. At the peak of the real estate boom, Dubai had over 850 registered developers, which now have declined to 500.

According to the Government of Dubai's update on bond prospectus, filed at the London Stock Exchange, around 307 property projects of the 980 registered projects in Dubai are expected to get completed in due course. The number of registered projects which have either been cancelled, or are in process of being cancelled, or on which work has otherwise stopped, equals 495. The agency has not officially announced cancellation of any project.

The only time Rera came out with official supply statistics was in February 2009. It then said 29,319 residential units were delivered in 2008, with 31,003 and 43,880 units set to enter the market in 2009 and 2010, respectively

Ghalita called on journalists to educate themselves on the current affairs of the real estate sector and urged transparency in the media sector.

"Everyone was making profit from buying and selling in 2007-2008. But now the situation has changed... three years after Rera's establishment, the market has now become more transparent," he added.

Comments

Tom Howell 16 March 2011 16:10 0 0

Instead of blaming the media, Mr Marwan bin Ghalita should look into his own organisation and its progress. Why is it that Rera was not held accountable? Still no clear regulatory framework. I mean we are trying to attract investors. Come on Rera, get your act together.

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Blame Game 13 October 2010 12:24 0 0

The majority of comments ring true as it appears that RERA seems to be the laughing stock by the investors who have reported complaints and RERA have ignored them all. Simple, they are doing exactly what the errant developers are doing...ignoring. Where's the action they gonna take against developers who break the law.

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Rera Schmeera 12 October 2010 06:37 0 0

So they have come up with one set of statistics in three years...then they say that they are transparent.

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J Sautter 12 October 2010 05:26 0 0

I don't even understand, why you cite Mr Ghalita. His comments are so simplistic it makes me scared for the future of this institution (RERA). Instead of blaming anyone, role up your sleves and get to work.

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CHEATED INVESTOR 11 October 2010 23:27 0 0

When Escrow launched, RERA assured investor's money was safe if funds were held in Escrow and if developer defaulted, RERA would intervene to complete the project. ETA Star’s Centre Court is a classic example where the developer shows no intention of completing the project and RERA doesn't seem interested in intervening. ETA Star's slogan "Built on Trust" is true as I am paying for a property which is being built on trust and not on Ground.

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JS 11 October 2010 22:15 0 0

The media must be at fault obviously, investors are waiting to get their money back on projects which have not started and surprisingly are not cancelled by RERA, of course the media is to blame who else it can't be RERA or the Developers who have been backed through this fiasco.

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Ben 11 October 2010 19:19 0 0

So Rera, who is next to blame? Ah yes, investors for complaining about errant developers and bothering you with their problems?

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Investor 11 October 2010 18:33 0 0

This article only proves once more that Rera is simply a joke. It's so easy to blame others instead of taking ownership and responsibility of your own faults.

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Kaif 11 October 2010 17:10 0 0

Rera is looking for a scapegoat in the media for its own failings. Instead, lets have an open conference with Rera, the media and investors all participating to see what ails the market and how it can be remedied?

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Disgusted 11 October 2010 16:47 0 0

Rera is blaming the media. They for once should blame themselves. Totally dysfunctional, unco-operative bunch ever. They don't respond to complaints yet they have a complaint system in place. Avoidance has been the key to their game. They know the problem exists but do nothing to protect the investor. Instead they allow thieving developers who have broken the law (not placing money into escrow) and do nothing to prosecute the law breakers.

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John Galbraith 11 October 2010 15:57 0 0

Rera has been a miserable failure. Besides show boasting and making grand announcements, Rera has done precious little to offer any relief to thousands of small investors. Shame.

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Shohreh 11 October 2010 15:32 0 0

I ask Rera if you (Rera) did check the accuracy... did give the correct information to investors?

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Rationalist 11 October 2010 14:37 0 0

I think the plethora of readers' comments clearly underlines and represents the genuine public sentiment in Dubai. Hope RERA reads these, and stop trying to fool people.

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Getachew 11 October 2010 13:26 0 0

I think media is right! The vaccum of information comes from Rera. But Rera blocked all information even Escrow account and cancelled projects. So what happend with money of runaway and cheating developers?. Rera is defending them?

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sajjad 11 October 2010 13:08 0 0

RERA like any other Dubai agency never bothered to reveal any information about the progress and status of construction and left all the investors in speculation.This was the attitude when the market was good.Thanks to the media that it brought out the inside out and then RERA came in a fire fighting mode.

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Kaz 11 October 2010 12:52 0 0

Naa it is not the media. Math is to blame. Build cost AED 360 pr. SQF. Sell for AED3600 pr. sqf - and hope no-one notice.

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Savilla George 11 October 2010 12:41 0 0

Simplistic explanation. The media caught them all on the wrong foot and thankfully some more did not get caught in this game of cheating investors. Rera did nothing when the going was good (rather too good to be good)

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Atif Rahman 11 October 2010 12:14 0 0

blme has to b shard by: DVLPRS who launchd proj widout feasibility study (dey shud hav had a contingency plan) MDIA who publishd exageratd figurz frm the mkt (dey had to for dey wer profitin frm develpers extravagant mktin campaign) INVSTRS who investd widout in-depth stdy (lets be trthful, ppl made 4tune of da sme mkt which is bein abusd) Dev. wil expct dat they r allwd to cancl defaultrs widout refnd. Inv’s wil expct ful refnd etc. I thnk RERA is doin wat they can, 1 cannt expct magic

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Simon Joseph 11 October 2010 11:49 0 0

oh, what a pity. Everyone was buying/selling and making money. Media came in and spoiled all the game. If this game was so great to make money, ever wonder why people work hard to make money, they should all be trading real estate. Easy..

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Saad 11 October 2010 10:18 0 0

The comments do not reflect the accurate picture. There was no demand supply information from RERA. The basis of demand ie visas had been refused. Developers have vanished with people's money after paying for the land, those projects will never be built. So how do they expect any confidence in the real estate sector ?

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