New laws to protect off-plan investors in Dubai as credit crunch brings uncertainty…
Finally, some good news for anyone who has bought, or is planning to buy, in Dubai. Two new laws in the pipeline will bring further protection to investors in the emirate’s off-plan property market.
The first law says that developers must own the land and have completed at least 20 per cent of construction before they can request consent from the Real Estate Regulatory Authority (Rera) and are allowed to sell off-plan.
The second law says the payment plan must be linked to construction milestones and a maximum of 20 per cent of the property price can be taken up front. Both are in draft form at the moment but expected to be implemented soon.
A law already in place says that developers will be cancelled from the Real Estate Register if they do not start construction of the project within six months of the date when approval was granted to sell off-plan.