Dubai Lagoons gets under way as Rera settles disputes

The Dh3 billion-Dubai Lagoon project, being developed by Schon Properties, is under way and has not been cancelled, according to Real Estate Regulatory Authority (Rera).

"The agency is working towards establishing a plan that is being worked around to better monitoring the Dubai Lagoons project. An auditor has been appointed to thoroughly audit the company's accounts. Likewise, an appraiser shall be appointed to examine construction works," Rera Chief Executive Marwan bin Ghalita said.

He said the agency held a meeting with investors [60] who purchased apartments in the Dubai Lagoons project to discuss and amicably settle the disputes and protect investors on the project.

"The Dubai Lagoons project, which was initiated before the launch of Rera, saw some delays. Rera, in its monitoring responsibility, had to respond to investors' complaints and safeguard their rights and interests," said Ghalita.

"Having been registered in the real estate developers' record, Schon Properties deposited the requisite amounts in its escrow accounts. Rera then had a list of all the investors of the Lagoons project," he said. In May, Danial Schon, Director of Schon Properties, told Emirates Business that the ownership details of Dubai Lagoon continues to be with Town Centre Management Ltd. "There has been no change in the management or the financial strength of the company," he said. "On Dubai Lagoons, Town Centre Management was always the registered developer and continues to be even now." Dubai Lagoons which was previously marketed by Better Homes, is now handled by Broker LCC – the marketing and leasing subsidiary of Schon Group.

There are approximately 3,200 investors in Dubai Lagoon. Around three per cent of them (about 100 people) came back with clarifications regarding the name change. But there were no issues as such, he said.

Rera spares no effort to create a scrupulous, stable, secure and safe real estate market here so that investors would have more confidence. The agency provides a boost to the investment ambiance and maintains real estate transactions in a modern legislative framework that keeps up with the international standards.

"Rera is geared up to enhance Dubai's achievements and control real estate breaches committed by few developers, who care for only their profits, and disregard Dubai's booming real estate development," Ghalita said. Besides, all investors are urged to report to Rera whatever violations they come across, particularly those related to escrow accounts Law No 8.

"Should they get involved in disputes or litigations vis-à-vis real estate development, investment and freehold, they are advised to approach the Property Court. They may also seek compensation and enforcement of obligations therein," explained Ghalita.

He earlier told this newspaper that the agency plans to take action against master developers and sub-developers if they fail to fulfil contractual obligations. It has told developers to revise payment structures if projects are delayed. "A developer who feels a project has been held up due to delays in the handover of plots by the master developer should contact us," Ghalita had said.

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