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Dubai's off-plan rules change

Catherine Deshayes

 
In an attempt to better regulate the property market, the Gulf emirate of Dubai has introduced new rules which forbid any off-plan sales of unregistered property.

With Dubai's booming property market awash with international investors, any new laws regulating the property purchase system is bound to have a big effect on that section of the market.

Keen to continue attracting lucrative investment from overseas, Dubai has recently introduced several new laws that aim to safeguard the property purchasing process and keep investors confidence in the market high.

His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued this new property registration law just a week after issuing a mortgage law, which also aimed to better regulate the market.

The new regulations, which apply to all new off-plan developments, stipulates that developers must register their holdings with the Dubai Lands Department, and stop selling unregistered properties off plan.

The new law bans property development companies from implementing their projects or selling their properties on the drawing board before actually owning the land on which the projects are to be built.

Mohammad Sultan Thani, Assistant Director General of the Dubai Land Department, said, "We have been getting numerous complaints regarding the ownership of various property developments while many of them were not registered.

"We expect the new regulation to eliminate such anomalies in the system," added Mr Thani.

The new law will invalidate any transactions on unregistered properties.

This could prove good news for investors, according to Abu Ali Malek Shroff, Chairman of Sheffield Real Estate, one of Dubai's leading property developers.

"The new law aims to help regulate the emirate's booming real estate sector and boost investor confidence in the property market.

"It will particularly help by providing a proof of ownership document to help settle any disputes.

"It is good for developers and investors. It stands as a proof of ownership in the event of any dispute between developers and master developers, Mr Malek Shroff added.

While the law gives developers a 60-day grace period to register any transactions carried out before the issuance of law, it also gives buyers a 30-day grace period to register their purchased properties.

Marzooq Al Rashdan, Vice-Chairman and Managing Director of boutique developer Abyaar also thought that the new regulations would be prove to be beneficial to international investors.

"The new rules are in everybody's interest and will prevent unrealistic speculation that leads to excessive price inflation in the market," said Mr Al Rashdan.

 To check out properties for sale in Dubai, visit http://dubai.themovechannel.com/

Picture by susush