DLD to cancel four projects as developers fail to meet guidelines
Dubai Land Department (DLD) is set to cancel projects of four property developers, a senior government official said.
"It has become difficult for those developers to meet the conditions in line with the regulations of Real Estate Regulatory Agency (Rera), after the grace period ended. Rera will cancel their projects," Director-General Sultan Butti bin Mijrin told Emarat Al Youm.
"The developers are required by law to return investors' money. They have lands, which can be sold to return the money. In addition, Rera can organise the process of re-funding in case the money is unavailable.
On May 6, Emirates Business reported that the Dubai Land Department and Rera had set up a committee that will decide on cancellation of "unviable" projects.
He said a system to electronically link developers with investors is launched. "The investor will be able to follow developments at the project through the DLD's website. This will prevent rumours in the market with regard to progress of different property developments."
The Property Court is the body specialised in the determination of the way of returning money to the investors, bin Mijrin said.
"The real estate market is in a good state. The correction, which took place in the market, created opportunities for many people. The DLD registered a few days ago a Dh19 million sale transaction, which had been registered in March for Dh15 million. This means the seller gained the difference within only three months."
According to bin Mijrin, the movement of property prices is not governed by a unified ruling. There are differences in the market and daily dispositions monitored by the DLD give signs on the return of activity. "Currently, we register 25 transactions a day; we were registering a maximum of five transactions in January. There are currently banks financing real estate activities. Finance will be available on a large scale soon when the banks continue providing property loans in the market.
"The regulations are laid down in the interests of investors and developers and the government attempts to take the interests of dealers into consideration and protect their rights through the regulations. A real estate evaluation centre is set up and regulations for the registration of residents and real estate evaluation companies in the emirate and issuance of certain criteria for the real estate evaluation operations are introduced."
On rents in Dubai and the role set to be played by the DLD represented by Rera, bin Mijrin said: "The DLD introduced a non-obligatory rent index, but it guides both landlords and tenants. The law is the reference of selling and buying contracts in the realty market. There are legal conditions on which the formulation of contracts should be based so the contracts do not violate the clauses of law's articles or regulations of real estate market."
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