The 2013 session is reported to have
succeeded in concluding deals valued
at AED 236 billion, with the international
deals adding up to AED 114 billion –
which reflects the level of confidence
within the UAE Real Estate Sector and
the volume of activities recorded to date.
Cityscape Dubai will see positive
developments in the real estate sector
in Dubai and the UAE, including the
development of speculation- reducing
laws for imposing the first high payment up
to 20% of the total value of the property.
The real estate development companies
thus aim to reduce speculative operations
and maintain the stability of the real estate
market. A lot of companies primarily
adopt the final user-selling strategy in
order to foster further stability in the real
estate market and avoid speculation.
Mazaya Monthly Real Estate Report - September 2014
3
Forexample,EmaarRealEstateDevelopment
Company has introduced a system for limiting
the ability of real estate agents from selling
the real estate units listed within the sales
projects, until the project is completed and the
units are effectively delivered. The company
also prohibits transferring ownership or re-
selling units before paying 40% of the total
value of the residential unit. The real estate
market has adopted several procedures and
controls to adjust the market, represented by
the decision issued by the Executive Council
of the Government of Dubai to raise the
registration fees of properties up to 4%at Land
& Property Department, in order to reduce
speculation and rapid sales operations.
Furthermore, Land & Property Department
seeks to create more transparency and
professionalism for the real estate market,
with the launch of the unified real estate
contracts that clarify the relationship
between the buyer and seller, and the
broker. This procedure aims to protect
the rights of all parties and facilitate the
processes of buying and selling. The UAE
Central Bank has also issued the mortgage
system, which grants mortgage loans to
citizens of up to 80% of the property value,
and to residents of up to 75%. The decision
prevents granting real estate loans until
the construction works reaches 50%. The
Al Mazaya report notes that all decisions
and actions are integrated with the
investment plans of the Emirate of Dubai in
particular and the state in general, in favor
of real estate investment and investors.
The Al Mazaya report showed that
supporting the growth of the real estate
sector permanently needs flexible and
sophisticated
working
mechanisms
and tools, and therefore the applicable
system of the real estate legislation
constitutes a quantum leap that attracts
foreign investment and meets challenges
and
unexpected
crises.
Further
developments are also needed in order
to keep pace with progress, taking into
account the requirements of keeping the
attractiveness of real estate products
and not imposing restrictions that hinder
investment activity – which is based on
real demand by the final user during the
current period resulting from the natural
growth of the population and tourism,
and high rates of external demand.
