Real estate investors turn heat on Dubai off plan homes

February 6, 2009 by OPPE News

Dubai sxc Real estate investors who have bought homes off plan in Dubai’s booming property market are hoping for protection from new laws now due for approval.

Last month the emirate’s Real Estate Regulatory Authority (Rera) and the Dubai Land Department said new rules were needed on investment homes to protect the local economy.

Laws proposed include a provision that real estate developers attach payment plans to the completion of homes.

Firms are even facing having to complete 20 per cent of properties in a development before starting sales.

Now many buyers are calling for the plans to be enacted quickly as those who have bought homes before construction are worried about some developers delaying schemes.

Pressure is growing, according to Gulf News , with one buyer saying on the website: “I bought a unit off plan a year ago. The developer said construction would start in a couple of weeks.

“Construction has not started yet and the developer is sending letters to pay or I will face daily charges.”

With some real estate projects facing difficulties in the current market correction, many commentators say the implementation of the laws would improve confidence in Dubai ’s property sector.

Earlier this week real estate giant Nakheel gave many buyers a boost when it revealed homes were on schedule to be handed over this year at its Badrah project in Dubai Waterfront.