The Real Estate Development plan, or Tanmia, launched today by the Dubai Land Department, will cover 100 projects in 2012, and will span the next three to four years, a senior official told Emirates 24|7.
“One project already has approval under the initiative and two more will be signed this week,” Sultan bin Butti bin Mejren, Director General of the Land Department, said.
He added that a number of developers have submitted application under this programme, but currently only 100 projects are being considered for next year.
Close to 225 projects are currently in progress in Dubai and will be delivered in the next three years, bin Mejren said.
He, however, made it clear that developers will not be allowed to bring in investors on their own.
“The department needs to protect right of the investors and the developer. Therefore, it needs to be involved in all these agreements.”
“The initiative aims to address the problems that stand in the face of completion of faltering projects in the domestic market in the emirate,” he said.
He said, “We will begin signing of memorandums of understanding and contracts with developers and investors who wish to gain benefits of the initiative, which will include all uncompleted projects regardless of the rate of achievement.”
The Dubai Land Department will play the role of overseer on the implementation of the initiative.
Bin Mejren said, “The local real estate market in Dubai has witnessed over the past period many of the developments that emphasise the durability and strength of the sector.”
He stressed that Real Estate Development plan will supplement other initiatives likes Tayseer, which has already signed 48 projects.
Majida Ali Rashed, Senior Counsel Strategy, DLD, told this website in March that the number of projects registered under Tayseer, the guaranteed funding plan, had reached 114.
One project has been funded through the initiative.
Tayseer was launched in June last year with 40 projects in Business Bay, Dubai Marina and Jumeirah Lake Towers being approved in the first phase.
The move was aimed to significantly boost liquidity in the market and bolster confidence in Dubai’s real estate sector.
When contacted, a number of developers welcomed the initiative, saying it will bring comfort to investors and help in completion of viable but stalled projects. Pearl Dubai Chairman Abdul Majeed Al Fahim said: “It will certainly attract investors and bode well for everyone — investors and developers. It will also lead to public participation in projects and increase investor confidence in the market.”
Shahab Lutfi, CEO of H&H Investment & Development, termed the initiative “excellent”, but emphasised that there should be check and balances in place to assure investors that no lawsuits would follow.
“There are investors… there is money to be made and it will not be a bad idea to invest in projects. You can’t go wrong if you can get a project at the right price, particularly if they are located in prime areas.”
Mohammed Ali, General Manager, ETA Star Properties, said that it was a good initiative and will help many stalled projects get funding.
“This will bring back a lot of faith and comfort to local and overseas investors. It is not about supply increase anymore, investors now want their projects to be completed,” he added.