Despite the perceived downturn and problems in the Dubai property industry, it appears that almost 17,000 new villas in 23 locations are set to be built in Dubai over the next five years.
Recently, Dubai property developers have announced the difficulties they have had in the region, with news about cancelled and delayed projects a common topic of conversation. However despite the doom and gloom predicted by some, not all developers are sharing the same pessimistic outlook. Read more... (157 words, estimated 38 secs reading time)
The fall of Dubai’s construction industry has sparked a huge backlog of legal claims, reported to total around $6 billion.
According to Building magazine, the arbitration court is said to be ‘swamped’ thanks to disputes over unfinished contracts and outstanding payments. Claims are expected to triple during 2009.
Last year, the Dubai International Arbitration Centre (DIAC) is said to have heard around 100 disputes. This year, DIAC has seen 180 cases already and is expecting to see around 300 cases over the course of the year. DIAC currently employes just six case workers however the massive increase in the number of disputes means they are now looking for a further two employees to help with the case load. Read more... (239 words, estimated 57 secs reading time)
Leading Abu Dhabi property developer Hydra Properties have admitted that around a fifth of investors are behind on their payments.
The property company has had a turgid year so far, with complaints from many investors that work on their Hydra Village project is well behind schedule and has cost more than was originally agreed. Investors were also upset when Hydra Properties sent property investors who have been late paying letters threatening legal action. Payments have been rescheduled however up until recently, Hydra have denied that they were having problems with investors defaulting. Read more... (242 words, estimated 58 secs reading time)
Hydra Properties has become the first Dubai developer to issue legal notice to property investors who are late with their payments. Notices have been sent out to real estate investors who are behind with their payments on Hydra’s flagship project, Hydra Village. The letter outlines that the developer will look to reacquire the properties if the outstanding debts are not made good, and should the property be reacquired, the property purchaser will lose all the money they have paid so far – including reservation costs and all installments. Read more... (205 words, estimated 49 secs reading time)
Dubai’s Real Estate Regulatory Authority have confirmed that property investors who have bought property off-plan in development projects that have now been cancelled are eligible for full refunds.
Under Law No 9 of 2009, if a government review demonstrates that the development has officially been cancelled, all cash paid by the property buyers will be returned to them by the developers as soon as the contract is terminated. This is good news as the law will hopefully provide more clarification over the termination of purchase and sale agreements for off-plan property. Over the past few months there had been increasing concern about the number of developers who had been paid money for off-plan properties but who had failed to start building them with no solid plans to start building works in the near future. Read more... (299 words, estimated 1:12 mins reading time)
The new online Dubai property transfer system has gone live. The online system allows developers to register their properties in the system and allow for the legal sale, titling and transfer of properties to take place. It is hoped that this new system will bring more transparency to the Dubai real estate industry and ensure accountability between all parties involved in a property transfer. Read more... (178 words, estimated 43 secs reading time)
The Dubai Land Department are looking at making a law amendment which would clarify what happens when a property buyer defaults on a payment.
Article 11, Law 132 currently states that if a buyer defaults on a sales contract, the developer is permitted to cancel the property contract and return the property purchaser’s money minus 30%. However the law is unclear the law applied to 30% of the money that the purchaser has paid so far, or 30% of the total amount that is due.
The amendment is expected to be a comprehensive and detailed amendment which would clear up any confusion over the way the law is currently stated. Read more... (150 words, estimated 36 secs reading time)