Dubai-based group praises Dubai’s new real estate regulations
Damac Properties has praised Dubai’s Real Estate Regulatory Authority (RERA) for introducing new regulations to the market, which the company says will be a “model for other developing property markets”.
With a remit to boost confidence and increase transparency, Dubai’s new ‘Strata Law’ outlines the requirements for developers to provide full disclosure statements about all of their projects in Dubai, as well as prepare Jointly Owned Property Declarations, which include definitions of internal floor space and share of ownership of common areas. A third direction outlines the framework for establishing Owners Associations.
The rate of growth the IMF has predicted for regional GDP
The new regulatory frameworks, including escrow accounts and a real estate register, have been initiated to ensure that further growth of the real estate market is sustainable and viable.
“The regulatory and legal framework that now underpins Dubai’s property market is on par with international standards. RERA is to be commended for creating a regulatory environment that will become an example for other countries in the region” said Niall Mc Loughlin, Senior Vice President, DAMAC Properties.
Dubai’s Strata Law, also known as Law 27, could act as a framework for markets in Egypt and Saudi Arabia, he added.
“Countries such as Saudi Arabia and Egypt are already making significant progress with regard to implementing their own regulatory framework to support growth in their respective real estate sectors.
“There is the potential for Dubai’s Strata Law to be used as a template for neighbouring countries, which are also planning to introduce regulations that define multiple-ownership” Mc Loughlin added.
Egypt is currently developing a mortgage finance regulation.
DAMAC claim the MENA region will be a “powerhouse” for the global economy this year, following IMF predictions that regional GDP will increase 5.1%, double the pace of the US and countries in the EU.