Want To Invest In Dubai Property?

By Author: David J.
Total Articles: 7
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Recent 'price corrections' that have seen prices fall as much as 50% in what had become an unhealthily overheated market place offer new investors a great opportunity to get a foot on the Dubai property ladder. A combination of these corrections and new legislation designed to protect property buyers from some of the sharper practices employed by some of the less scrupulous property agents are setting the scene for a healthy and vibrant future.

Recent changes in the manner in which Dubai real estate development is managed have been applied to bolster confidence in Dubai property. The ""freewheeling"" days of Dubai real estate have been reigned in by strict controls on how developers can use money paid to them by off-plan property purchasers. In addition proper validation and certification for developers has been put in place.

The advice to new investors is simple. Avoid any developer without the proper new certification.

Under the Escrow/Trust Law administered by Dubai's land department (DLD) and an agency called the Real Estate Regulatory Authority (RERA), all funds received by property developers have ...
... to be administered through an ""escrow"" or ""trust"" account, opened with a DLD approved financial institution. The developers must first though be registered with the registration process requiring that the developer satisfy a number of conditions before it can even open the trust account and begin selling property. Conditions include the filing of architectural plans and a financial statement in compliance with the new law.

Developers are also required to retain five per cent of the total value of the trust account for one year in order to cover claims for defects arising from the construction of the project.

This is good news for those looking to invest in Dubai property, bad news for those looking to take advantage of them.