Developers prefer renting out completed units on furnished basis
Tuesday, February 09, 2010
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Dubai developers are considering renting out their new units on furnished basis to generate immediate revenue, real estate analysts said.
Few developers will want to convert their new developments into furnished apartments on short to medium or long-term basis, given the current market conditions, said Mohammed Nimer, CEO, MAG Property Development.
This will help in immediate revenue generation for them, rather than leaving their buildings without tenants. The furnished apartments have high rental value due to higher investment value.
The Executive Director of ETA, Abid Junaid, said that his company would be converting a project due for delivery during the third quarter of 2010, into a furnished model, and has hired Star Hospitality, to manage and offer services to the project.
The project, namely Grandeur Residences, located along the Palm Jumeirah, will comprise single, double and triple bedroom apartments and beach front villas. The highest floors of each block will house four exclusive penthouse suites, with private access to each via the spiral staircase to the terrace.
According to Junaid, the expected rate of return for such project is around 8 percent per annum, as a developer, but, as of now, it is about 6 percent, depending on occupancy and room rates.
According to real estate agents, the rentals for furnished apartments are 10 to 20 percent higher on an average than unfurnished apartments. Given, the current situation in Dubai real estate market, several investors have been prompted to look at acquiring furnished apartments for short-term leasing.
According to Gibran Bukhari, Sales Manager at Coldwell Banker, this year several individual units will be converted into furnished apartments.
The Sales Director of Elysian Real Estate, Robert Macnair, agreed that furnished property generated 15 to 20 percent premium over a typical unfurnished property.
For instance, a single bedroom Shoreline apartment on the Palm Jumeirah will fetch Dh.150,000 per annum by way of rent, while a similar unfurnished apartment will generate about Dh.120,000 per annum.
Better Homes, a prominent real estate agency, said that rents for furnished apartments fall in the range Dh.5,500 and Dh.8,500 per month.
Labels: Real Estate News, Rentals
Damac's Business Bay projects make good progress
Sunday, February 07, 2010
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Damac Properties, the luxury lifestyle developer, said that the enabling works at two of its developments - Water's Edge and Commercial Square at the Business Bay are making good progress, with the main contracts to be awarded in spring this year.
The Commercial Square is a 21 storey office tower, while Water's Edge is a 20 storey commercial waterfront development located at the heart of Business Bay.
Both the developments are now under construction with contractors already making good progress on shoring, fencing, ground clearance activities, said Damac.
The General Manager of Damac Properties, Ziad El Chaar, said that the progress of work at Business Bay locations is a further indication about the continued commitment by the company to construct and develop plans for 2010.
Last year, Damac completed two of the four commercial projects at Business Bay, namely, the XL Tower and the Business Tower. These are likely to be completed by first half of 2010.
With several projects already underway at Business Bay, the good progress make by the two projects of Damac in the their early stages, no-doubt leaves a positive note, said El Chaar.
The Commercial Square is a 21 storey office tower, while Water's Edge is a 20 storey commercial waterfront development located at the heart of Business Bay.
Both the developments are now under construction with contractors already making good progress on shoring, fencing, ground clearance activities, said Damac.
The General Manager of Damac Properties, Ziad El Chaar, said that the progress of work at Business Bay locations is a further indication about the continued commitment by the company to construct and develop plans for 2010.
Last year, Damac completed two of the four commercial projects at Business Bay, namely, the XL Tower and the Business Tower. These are likely to be completed by first half of 2010.
With several projects already underway at Business Bay, the good progress make by the two projects of Damac in the their early stages, no-doubt leaves a positive note, said El Chaar.
Labels: Business Bay, Damac Properties
No major upturn seen in Dubai realty market
Thursday, February 04, 2010
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There has not been any major upturn in the Dubai real estate market, as it continued to remain sluggish during the final quarter of 2009 with lease rates continuing to fall, said the CB Richard Ellis Report.
The Dubai Land Department statistics indicate that the total number of transactions fell 17.7 percent, touching 520 during the fourth quarter of 2009, compared to the same period the previous year.
The lease rates for Dubai residential units recorded a marginal decline in 2010, as considerable volume of new homes reached their final stages of construction, reported CB Richard Ellis.
As for the commercial office space market, the lease rates had already bottomed out, with rents reflecting levels during 2005, the brokerage firm said, while adding that rates in the central business district area will remain the same, as there may not be any major supply in the short-term.
However, new commercial office areas are already seeing high vacancy rates and are likely to see a dip further, as landlords continue to give greater incentive packages when they compete to woo tenants, CB Richard Ellis said.
Even the apartment rates will drop this year, they said.
The Dubai Land Department statistics indicate that the total number of transactions fell 17.7 percent, touching 520 during the fourth quarter of 2009, compared to the same period the previous year.
The lease rates for Dubai residential units recorded a marginal decline in 2010, as considerable volume of new homes reached their final stages of construction, reported CB Richard Ellis.
As for the commercial office space market, the lease rates had already bottomed out, with rents reflecting levels during 2005, the brokerage firm said, while adding that rates in the central business district area will remain the same, as there may not be any major supply in the short-term.
However, new commercial office areas are already seeing high vacancy rates and are likely to see a dip further, as landlords continue to give greater incentive packages when they compete to woo tenants, CB Richard Ellis said.
Even the apartment rates will drop this year, they said.
Labels: Dubai Real Estate, Market Trends
Dubai residential prices rise 0.7pc in Q4 2009
Tuesday, February 02, 2010
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The residential prices in Dubai increased 0.7percent during the final quarter of last year, in comparison to the third quarter of the same year, reported a recent research.
The increase which reflected in the new Sales Price Index for Dubai (SPID) has been launched by REIDIN.com in partnership with Real Estate Regulatory Agency (RERA) and Dubai Land Department (DLD).
The new service is hoped to offer the market with a series of indices and data to improve transparency across the market and help real estate professionals to analyze residential price trends, the Company said, in its statement.
Currently, the prices of villas increased by 2.6 percent during the fourth quarter, but dropped by 19.7percent in 2009, in comparison to the prices during Q4 2008.
Among the 10 main districts covered by the index, is the Palm Jumeirah, where the prices indicated a rise by 2 percent quarter on quarter. The quarterly figures for both Emirates Hills and Jumeirah Lake Towers dropped by 19 percent during the same period, the company said.
The CEO of REIDIN.com, Ahmet Kayhan, said that ensuring accuracy of market data and relevance to local market conditions is of topmost priority. This is the motive behind appointing an Advisory Committee, comprising academicians and industry professionals from various emerging economies to monitor the quality of indices.
Apart from this, a Property Indices Oversight Committee has been established, which is responsible for reviewing and recommending changes in index policies and procedures required by data elements, in qualifying properties, in reviewing monthly index production and in initiating actions considered necessary to assure index statistical integrity, Kayhan said.
The increase which reflected in the new Sales Price Index for Dubai (SPID) has been launched by REIDIN.com in partnership with Real Estate Regulatory Agency (RERA) and Dubai Land Department (DLD).
The new service is hoped to offer the market with a series of indices and data to improve transparency across the market and help real estate professionals to analyze residential price trends, the Company said, in its statement.
Currently, the prices of villas increased by 2.6 percent during the fourth quarter, but dropped by 19.7percent in 2009, in comparison to the prices during Q4 2008.
Among the 10 main districts covered by the index, is the Palm Jumeirah, where the prices indicated a rise by 2 percent quarter on quarter. The quarterly figures for both Emirates Hills and Jumeirah Lake Towers dropped by 19 percent during the same period, the company said.
The CEO of REIDIN.com, Ahmet Kayhan, said that ensuring accuracy of market data and relevance to local market conditions is of topmost priority. This is the motive behind appointing an Advisory Committee, comprising academicians and industry professionals from various emerging economies to monitor the quality of indices.
Apart from this, a Property Indices Oversight Committee has been established, which is responsible for reviewing and recommending changes in index policies and procedures required by data elements, in qualifying properties, in reviewing monthly index production and in initiating actions considered necessary to assure index statistical integrity, Kayhan said.
Labels: Property Prices, Residential
Work on private projects at The World to begin soon
Friday, January 29, 2010
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Nakheel has confirmed that construction would soon commence on its off-shore island development, The World.
The confirmation about the beginning of the work began when the European developer, Major Trade, announced commencement of work on its island project. Ground works, including soil testing have begun and reclaiming of the island plot and vibro-compaction will begin in February 2010, the Company said.
The Kliendienst Group last month announced that it would begin construction on its Germany Island, part of the Dh.3.1bn Heart of Europe development.
The Managing Director of Nakheel, Marwan Al Qamzi said that The World is an attractive project, given its differentiated offering and close proximity and accessibility to developing markets.
The Arabian architectural and cladding specialist, Arabian Profile Company Limited and Canadian Gulf Construction have been engaged to carry out construction work on the development. The logistics for the project will function out of The World Construction Logistics Port located at Mina Rashid, operated by Penguin Marine Boats Services.
The Managing Director of Major Trade, Viktor Herceg, expressed confidence that on completion of the project, it will generate huge demand for luxury residences. He added that Nakheel has been very supportive as the company has been striving to develop its first island development.
Located at the tip of the Greenland area of The World, the island includes a modern residential villa development and a luxury boutique hotel.
Major Trade is the real estate development investment arm and special purpose vehicle for a mid-sized European residential property developer, particularly responsible for luxury, and high-end developments in Dubai.
The work will begin on as many as 20 islands this year, Nakheel confirmed. The buyers have revised few of their initial designs taking into account the economy, and are now moving ahead with their construction works.
The confirmation about the beginning of the work began when the European developer, Major Trade, announced commencement of work on its island project. Ground works, including soil testing have begun and reclaiming of the island plot and vibro-compaction will begin in February 2010, the Company said.
The Kliendienst Group last month announced that it would begin construction on its Germany Island, part of the Dh.3.1bn Heart of Europe development.
The Managing Director of Nakheel, Marwan Al Qamzi said that The World is an attractive project, given its differentiated offering and close proximity and accessibility to developing markets.
The Arabian architectural and cladding specialist, Arabian Profile Company Limited and Canadian Gulf Construction have been engaged to carry out construction work on the development. The logistics for the project will function out of The World Construction Logistics Port located at Mina Rashid, operated by Penguin Marine Boats Services.
The Managing Director of Major Trade, Viktor Herceg, expressed confidence that on completion of the project, it will generate huge demand for luxury residences. He added that Nakheel has been very supportive as the company has been striving to develop its first island development.
Located at the tip of the Greenland area of The World, the island includes a modern residential villa development and a luxury boutique hotel.
Major Trade is the real estate development investment arm and special purpose vehicle for a mid-sized European residential property developer, particularly responsible for luxury, and high-end developments in Dubai.
The work will begin on as many as 20 islands this year, Nakheel confirmed. The buyers have revised few of their initial designs taking into account the economy, and are now moving ahead with their construction works.
Labels: Luxury Homes, Nakheel, The World
Completed quality projects in prime localities in demand
Tuesday, January 26, 2010
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Investors are constantly seeking high-quality properties in prime locations of Dubai, due to stability in prices and increase in demand during the past months, say industry sources.
The Senior Investment Consultant at Asteco Property Management, Ken Rohan, said that transactional volumes have also increased, but investors are more focused on quality completed projects in prime localities.
The developments that are yet to be completed are not attracting potential buyers due to uncertainty about completion of the project and the eradication of speculative market, Rohan said.
However, average residential prices are likely to drop this year, with more supply coming into the market. There could even be considerable price declines in the commercial market, due to surplus projects, although the project delays and infrastructure issues, particularly in Business Bay area, could slow down the supply pipeline, said Jesse Downs, Director of Research and Advisory Services at the Landmark Advisory.
The property boom in Dubai stopped during the late part of 2008, causing prices to fall by half. Few analysts have predicted that the market could slowly recover in the first half of this year.
The Senior Investment Consultant at Asteco Property Management, Ken Rohan, said that transactional volumes have also increased, but investors are more focused on quality completed projects in prime localities.
The developments that are yet to be completed are not attracting potential buyers due to uncertainty about completion of the project and the eradication of speculative market, Rohan said.
However, average residential prices are likely to drop this year, with more supply coming into the market. There could even be considerable price declines in the commercial market, due to surplus projects, although the project delays and infrastructure issues, particularly in Business Bay area, could slow down the supply pipeline, said Jesse Downs, Director of Research and Advisory Services at the Landmark Advisory.
The property boom in Dubai stopped during the late part of 2008, causing prices to fall by half. Few analysts have predicted that the market could slowly recover in the first half of this year.
Labels: Market Trends
Housing Price Index indicates market stability
Friday, January 22, 2010
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Housing Prices are getting closer to their underlying values, which indicates that the market is beginning to stabilize, reveals Colliers International, the real estate consultancy firm, in their latest house price index for the fourth quarter of 2009.
The latest house price index for the fourth quarter 2009 indicates that prices remained stable during the fourth quarter of 2009, rising only by one percent, which puts it at the same level as in second quarter of 2007.
According to Ian Albert, Regional Director, Colliers International, the fluctuation in the index has been very low during the year at only 1.7 percent. Although, there have been ups and downs, there is a strong indication that the market had reached the bottom point. Every quarter to quarter there will be small variances in prices, as the market attempts to reach equilibrium.
During the previous quarters, the prices in the index increased 7 percent in the third quarter, and declined by 9 percent in the second quarter and by 41 percent in the first quarter.
The report states that the apartment prices have decreased by four percent during the fourth quarter of last year, in comparison to third quarter of 2009. The villa prices have increased by 7 percent in fourth quarter of 2009, compared to third quarter, while the townhouse prices have increased by 10 percent during the fourth quarter of 2009, in comparison to the third quarter.
The Dubai House Price Index has been compiled by using mortgage transaction data from five different financial institutions. The reports are based on figures released by brokers or by the land department, which could sometimes be historic.
The report's data is based on the number of mortgages purchased and how many properties have been bought. The data doesn't include cash purchasers, which could sometimes lead to misleading results, said Albert.
According to Albert, the future of real estate market is dependent on several variables. There are several things happening in 2010, which hasn't been witnessed before.
The latest house price index for the fourth quarter 2009 indicates that prices remained stable during the fourth quarter of 2009, rising only by one percent, which puts it at the same level as in second quarter of 2007.
According to Ian Albert, Regional Director, Colliers International, the fluctuation in the index has been very low during the year at only 1.7 percent. Although, there have been ups and downs, there is a strong indication that the market had reached the bottom point. Every quarter to quarter there will be small variances in prices, as the market attempts to reach equilibrium.
During the previous quarters, the prices in the index increased 7 percent in the third quarter, and declined by 9 percent in the second quarter and by 41 percent in the first quarter.
The report states that the apartment prices have decreased by four percent during the fourth quarter of last year, in comparison to third quarter of 2009. The villa prices have increased by 7 percent in fourth quarter of 2009, compared to third quarter, while the townhouse prices have increased by 10 percent during the fourth quarter of 2009, in comparison to the third quarter.
The Dubai House Price Index has been compiled by using mortgage transaction data from five different financial institutions. The reports are based on figures released by brokers or by the land department, which could sometimes be historic.
The report's data is based on the number of mortgages purchased and how many properties have been bought. The data doesn't include cash purchasers, which could sometimes lead to misleading results, said Albert.
According to Albert, the future of real estate market is dependent on several variables. There are several things happening in 2010, which hasn't been witnessed before.
Labels: Market Trends, Property Prices
Rents for Burj Khalifa units to outdo other established highrises
Tuesday, January 19, 2010
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The lease rates for units at Burj Khalifa, the world's tallest tower, are yet to be established, although analysts believe that the rental rates for commercial spaces in the tower will easily surpass the prevailing rates in other established high-rise buildings of the world, such as those of Petronas Towers in Kuala Lumpur or the Sears Tower at Chicago, United States.
The world's tallest tower spreads across Dh.600 per sq. ft. on an average, which is double that of other competing high-rises across the world, said Porush Jhunjuwala, Manager, Commercial Leasing at Better Homes.
The average price of offices across the world falls in the range of $30 to $40 per sq. ft. and in iconic towers such as the petronas in Kuala Lumpur and the Sears in Chicago it is about $60 and $85 respectively.
As far as Burj Khalifa is concerned, rentals will be based on demand and supply in the tower. Several large corporates have shown interest in the prestigious tower and have enquired for office space. However, it is too early to arrive at a definite rental amount what the tower is likely to command, said Jhunjuwala.
The height of the storey in which the unit is located, will be a major factor in determining the commercial rent value. The expected premium should be about 5 percent higher with the increase in height of each storey, he said.
Another main factor to determine the rent will be the service charges, which again, are yet to be cleared at the moment. Further, even service charges for the offices, form an important component of the rent, which also needs consideration, he said.
The selling prices of residential units are likely to appreciate soon, with delivery dates set from next month onwards. At present, the apartments will draw an average sale price of Dh.3500 to Dh.5000 per sq. ft. However, with the delivery of more apartments there will also be an improvement in the achievable sales prices, says Vineet Kumar, Head-Sales, Asteco, the leading property management firm.
Currently, the office space demands an average selling price of Dh.6000 per sq. ft. to Dh.7500 per sq. ft., he said. The units on the higher floors will obviously go for a higher price attracting a premium of about 15 percent in selling prices for higher storeys.
The world's tallest tower spreads across Dh.600 per sq. ft. on an average, which is double that of other competing high-rises across the world, said Porush Jhunjuwala, Manager, Commercial Leasing at Better Homes.
The average price of offices across the world falls in the range of $30 to $40 per sq. ft. and in iconic towers such as the petronas in Kuala Lumpur and the Sears in Chicago it is about $60 and $85 respectively.
As far as Burj Khalifa is concerned, rentals will be based on demand and supply in the tower. Several large corporates have shown interest in the prestigious tower and have enquired for office space. However, it is too early to arrive at a definite rental amount what the tower is likely to command, said Jhunjuwala.
The height of the storey in which the unit is located, will be a major factor in determining the commercial rent value. The expected premium should be about 5 percent higher with the increase in height of each storey, he said.
Another main factor to determine the rent will be the service charges, which again, are yet to be cleared at the moment. Further, even service charges for the offices, form an important component of the rent, which also needs consideration, he said.
The selling prices of residential units are likely to appreciate soon, with delivery dates set from next month onwards. At present, the apartments will draw an average sale price of Dh.3500 to Dh.5000 per sq. ft. However, with the delivery of more apartments there will also be an improvement in the achievable sales prices, says Vineet Kumar, Head-Sales, Asteco, the leading property management firm.
Currently, the office space demands an average selling price of Dh.6000 per sq. ft. to Dh.7500 per sq. ft., he said. The units on the higher floors will obviously go for a higher price attracting a premium of about 15 percent in selling prices for higher storeys.
Labels: Burj Dubai, Burj Khalifa, Leasing
Dubai records stability in apartment, villa prices: Asteco Report
Friday, January 15, 2010
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Dubai has recorded stability in selling prices of apartments and villas for completed developments towards end of 2009, with no changes in prices during the third and last quarter of 2009.
According to Asteco, the largest property services company in the UAE, the Dubai residential and commercial property market witnessed an increase in transaction during the second half of 2009 as the economy had picked up and there was an improvement in mortgage availability.
Among the developments monitored, the Palm Jumeirah was able to hold values to the maximum, Asteco said.
Being an iconic development, and with constant improvement in infrastructure and completion of residential and hotel developments, the Palm Jumeirah is one of the most sought-after destination, said Elaine Jones, the Asteco Chief Executive Officer.
The other areas that have been of considerable interest to Asteco throughout 2009 are the Dubai Marina, Downtown Burj Dubai, Jumeirah Beach Residence, Arabian Ranches and Springs, as they offer lifestyle communities with more accessibility to leisure, entertainment, retail and education.
The average selling price of apartments in Dubai stood at Dh.950 in 2009, a decrease by 16 percent since Q1 2009, and Dh.1000 per square foot for villas with a decrease by 9 percent change since Q1 2009, the Asteco said in its report.
Business Bay and International City recorded maximum decrease in apartment sale prices since Q1 2009 with 23 percent fall. The prices at Green Community and Palm Jumeirah have remained stable with no change since the beginning of the year.
However, the year-on-year change from Q4 2008 was less by 46 percent in 2009 in comparison to that recorded in Q4 2008 and Q1 2009. This is followed by Arabian Ranches with 29 percent. However, the Palm Jumeirah and Springs recorded a positive growth with 20 and 21 percent respectively.
Similar to the apartments, the price decreases were most substantial between Q4 2008 and Q1 2009. The average year-on-year decrease amounted to 49 percent since Q4 2008.
Dubai has recorded decrease in rentals by 24 percent for apartments and 18 percent for villas on an average throughout the year of 2009, as said by Asteco.
Apartment rental rate decreased 6 percent in Palm Jumeirah, which recorded the minimal decrease, followed by a decline of 15 percent by International City since Q1 2009.
The villa leasing rates in Jumeirah and Umm Suqeim saw the highest drop with 30 percent. The Palm Jumeirah was the only area which to record an increase in villa rentals by 4 percent on an average due to lack of availability, as several owners purchased property to live in or to keep as a holiday home.
In comparison to Q3 2009, the rental declines slowed down during the last quarter with overall decrease of 2 percent recorded for apartments and 1 percent drop for villas. Although the rates picked up slightly in October, the negative media attention which Dubai received in November, recorded a decline in rental once more.
According to Asteco, the largest property services company in the UAE, the Dubai residential and commercial property market witnessed an increase in transaction during the second half of 2009 as the economy had picked up and there was an improvement in mortgage availability.
Among the developments monitored, the Palm Jumeirah was able to hold values to the maximum, Asteco said.
Being an iconic development, and with constant improvement in infrastructure and completion of residential and hotel developments, the Palm Jumeirah is one of the most sought-after destination, said Elaine Jones, the Asteco Chief Executive Officer.
The other areas that have been of considerable interest to Asteco throughout 2009 are the Dubai Marina, Downtown Burj Dubai, Jumeirah Beach Residence, Arabian Ranches and Springs, as they offer lifestyle communities with more accessibility to leisure, entertainment, retail and education.
The average selling price of apartments in Dubai stood at Dh.950 in 2009, a decrease by 16 percent since Q1 2009, and Dh.1000 per square foot for villas with a decrease by 9 percent change since Q1 2009, the Asteco said in its report.
Business Bay and International City recorded maximum decrease in apartment sale prices since Q1 2009 with 23 percent fall. The prices at Green Community and Palm Jumeirah have remained stable with no change since the beginning of the year.
However, the year-on-year change from Q4 2008 was less by 46 percent in 2009 in comparison to that recorded in Q4 2008 and Q1 2009. This is followed by Arabian Ranches with 29 percent. However, the Palm Jumeirah and Springs recorded a positive growth with 20 and 21 percent respectively.
Similar to the apartments, the price decreases were most substantial between Q4 2008 and Q1 2009. The average year-on-year decrease amounted to 49 percent since Q4 2008.
Dubai has recorded decrease in rentals by 24 percent for apartments and 18 percent for villas on an average throughout the year of 2009, as said by Asteco.
Apartment rental rate decreased 6 percent in Palm Jumeirah, which recorded the minimal decrease, followed by a decline of 15 percent by International City since Q1 2009.
The villa leasing rates in Jumeirah and Umm Suqeim saw the highest drop with 30 percent. The Palm Jumeirah was the only area which to record an increase in villa rentals by 4 percent on an average due to lack of availability, as several owners purchased property to live in or to keep as a holiday home.
In comparison to Q3 2009, the rental declines slowed down during the last quarter with overall decrease of 2 percent recorded for apartments and 1 percent drop for villas. Although the rates picked up slightly in October, the negative media attention which Dubai received in November, recorded a decline in rental once more.
Labels: Property Prices
Ajman to establish new property dispute panel by Q1 2010
Monday, January 11, 2010
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Ajman will shortly announce a new committee to settle disputes between developers and investors. The committee will take up issues pertaining to cheques involved in real estate transactions.
The Director General of Ajman Real Estate Regulatory Authority (ARRA), Omar Al Barguthi, said the committee was hoped to begin operations by end of 2009. But the clearance from the Ministry of Justice is awaited.
Apart from resolving investor-developer disputes, the committee will also take up issues pertaining to post-dated cheque issues and more such cases pertaining to property sector, he added.
The committee will include five members nominated by the Executive Council, headed by a Judge assigned by the Ministry of Justice. In November, the Dubai Government established a new judicial committee to deal with cases of bounced cheque in property sector.
ARRA is working with Ruler's Court of Ajman based on a decree to establish a 'bounced cheque committee'. The decree is hoped to be passed within next two months, said Lisa Dale, Partner and Head of Property Department, Al Tamimi & Company.
This follows the initiative by Dubai, wherein a similar committee was established on the directions of Dubai's Ruler.
Ajman has several cases of off-plan property purchasers, wherein developers were given post-dated cheques. When the purchasers bought property off-plan and gave post-dated cheques, the purchasers have failed to honour these cheques, either because the developer has not progressed with construction, or due to financial constraints faced by the purchasers. The developer then files a complaint and in several instances, the purchasers have either left the country or are facing criminal prosecution, Lisa explained.
The Director General of Ajman Real Estate Regulatory Authority (ARRA), Omar Al Barguthi, said the committee was hoped to begin operations by end of 2009. But the clearance from the Ministry of Justice is awaited.
Apart from resolving investor-developer disputes, the committee will also take up issues pertaining to post-dated cheque issues and more such cases pertaining to property sector, he added.
The committee will include five members nominated by the Executive Council, headed by a Judge assigned by the Ministry of Justice. In November, the Dubai Government established a new judicial committee to deal with cases of bounced cheque in property sector.
ARRA is working with Ruler's Court of Ajman based on a decree to establish a 'bounced cheque committee'. The decree is hoped to be passed within next two months, said Lisa Dale, Partner and Head of Property Department, Al Tamimi & Company.
This follows the initiative by Dubai, wherein a similar committee was established on the directions of Dubai's Ruler.
Ajman has several cases of off-plan property purchasers, wherein developers were given post-dated cheques. When the purchasers bought property off-plan and gave post-dated cheques, the purchasers have failed to honour these cheques, either because the developer has not progressed with construction, or due to financial constraints faced by the purchasers. The developer then files a complaint and in several instances, the purchasers have either left the country or are facing criminal prosecution, Lisa explained.
Labels: Ajman, Property Law
