UAE officials clamp down on developers

Officials in the UAE are cracking down on developers who are stalling on new projects in the emirate.

The Dubai-based Real Estate Regulatory Agency (Rera) is questioning developers as to why builds are not being started and urging organisations to take more responsibility.

Property investors in the region will be pleased to hear that by implementing these procedures, the agency is able to cancel projects that are unlikely to be completed and allow investors to recoup their money.

Marwan bin Ghalita, Rera's chief executive officer, explained the process that the organisation has to go through.

He said: "We are asking them to give clear reasons as to why a developer has not commenced a project, since they are aware of what is happening on site.

"We are in favour of mediation that tries to solve the problem between the developer and the investor through mutual agreement. And if no agreement is reached, parties can move to the Property Court."

According to the latest report from Jones Lang LaSalle, the real estate market in Dubai will not recover until after 2011.

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