Dubai Property Group (DPG), Dubai’s only real estate professional association, today hosted Dubai’s Real Estate Regulatory Agency (RERA) team, at its monthly networking even. The team of RERA presented the Agency’s plans and projects to over 25o DPG members and other high ranking real estate professionals, urging all developers, brokers or real estate firms to register themselves with RERA immediately. The team included: Khawla Al-Tamimi, real estate researcher at RERA, Hamda Al-Shamsi, real estate studies specialist at RERA, Sheikh Jumah Al-Maktoum, RERA’s trust account manager, Judy Hely, project manager for real estate brokers at RERA.
Sheikh Jumah Al-Maktoum, RERA’s trust account manager, announced that to date, more than 420 real estate developers and 23 banks have registered with RERA. He pointed out that under the new law which came into effect on 28 June 2007, off-plan buyers should make their payments into special escrow accounts managed by banks, auditors and the Dubai Lands Department, instead of directly to the property developers.
Khawla Al-Tamimi, real estate researcher at RERA, pointed out that Dubai’s new projects will be registered in RERA database. “Our database will include the number of residential and commercial units, the size of each unit and the number of floors…etc. All the information will be then included in our detailed study which will be published next April and it will be the first official governmental study related to real estate market development.”
Adel Lootah, the Executive Director of Dubai Property Group said, “We are glad to host RERA at our monthly networking event again, and open a channel of communication between RERA and our members. We believe that such events will keep our members abreast of the latest changes in regulations and the upcoming developments planned for the growing property sector in Dubai.”
2007 was a defining year for RERA. According to RERA’s latest figures, the total value of land transaction in Dubai reached AED175 billion in 2007, a 170 percent increase from AED62 billion in 2006.
“30 percent of these transactions were generated by new procedure like ijara (Lease-to-Own) Musataha (surface ownership) flat and apartment registration,” said Hamda Al-Shamsi, real estate studies specialist at RERA. “The cash sales of land last year involved about 108 districts in Dubai. Al-Jadaf district was the top selling area, followed by Jebel Ali and Sheikh Zayed Road.”
Judy Hely, project manager for real estate brokers at RERA, shed light on the importance of regulating real estate brokers. “Real estate brokers operating in Dubai are obliged to be registered and certified as any sales done by a broker who has not been officially registered and recognized by the Lands Department will effectively be null and void.”
“We are also introducing real estate training courses. We believe that these courses will effectively define the agreement from the onset, elevate service standards, capture vital data, provide consistency to consumers and investors,” she said.
Last July, Dubai government took steps to regulate the emirate’s real estate industry with the establishment of RERA and issuance of Law No. 8 of the Trust Account services. Since its establishment, RERA has been overseeing policies, regulation and registration within the industry.
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