The real estate sector in Dubai, currently ranked as the most transparent market in the Middle East North Africa (MENA) region, is in for a further boost, with the enforcement of an impending law, aimed at protecting investors, said a global financial and professional services company, specializing in real estate.
The new law permits investors to cancel their contracts and get back their money, if the developers violate the terms and conditions. This is likely to boost investor confidence, says Jones Lang LaSalle (JLL) in its review on the real estate market in Dubai. This will further, pressurize the developers to complete their projects.
As per the new law, there will be increased transparency in the market, and with better regulation of real estate market, investors can cancel their contract if the real estate handover is delayed for more than a year. In fact, the new law permits investors to have the option to demand compensation in the event of defects in the property when it is delivered.
With constant demand for quality, there is improved investor confidence, given, the well-located, income producing assets, said JLL in its report. Majority of transactions have been recorded during first half of the year.
ResidentialThe overall residential market too, is witnessing a positive trend, with villa market outperforming the apartment sector in second quarter of 2012, the report said.
Prime residential buildings in prime locations have shown better performance, while the secondary locations are continuing to suffer decline in rental and pricing, it said. Nearly 3000 additional residential units have been added to the Dubai market, making a total of 344,000 units of total residential stock.
Among the notable projects handed over this quarter are The Villa Phase 3 in Dubailand, two towers in Dubai Marina, three buildings in Dubai Silicon Oasis, and a complex comprising 26 buildings in International City, the report said.