New developers in Dubai will now have to pay 100 per cent of the land price to start selling properties "off plan" and will have to inject a minimum 20 per cent of project value to commence construction, a top government official said.
"Besides, paying land value in full and injecting 20 per cent of the project value to start construction, new developers will have to link payments to construction. This is a new regulation that will become operational from March," Marwan bin Ghalita, Chief Executive Officer, Real Estate Regulatory Agency (Rera) said yesterday.
Although the agency has postponed plans to introduce a new sales agreement, it will soon be introducing a "cool off" period clause that will allow investors time to rethink their decision.
"The investor will have the right to have a clause of cool off period for 15 days and then commit to a contract. Once you sign a contract, you are bound by it."
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