Dubai aims to protect investors

Dubai is giving its renowned property market a boost by introducing new laws that should protect investors from developers that fail to begin or finish projects on time...

The Emirate state has seen a rise in the number of developers with such failings, raising concerns that the global economic downturn is encouraging property companies to renege on contracts.

Some are even asking for increased payments, rather than refunding clients for delayed completion dates.

However, new legislation is being drawn-up demanding that developers selling off-plan must own the land on which a project is sited and complete 20 per cent of construction before entering into a contract with a purchaser.

The new measures will also create a link between payment plans with the progress made in construction.

This should help prevent construction companies securing a large deposit and then failing to begin work on time.

Under the new regime it is anticipated that funds handed over before completion will be limited to 20 per cent of the property purchase price.

Source: www.homemove.co.uk