توافره يعالج أهم العوائق في سوق التمويل ال

Emarat Alyoum

Emarat Alyoum

‏‏‏توافره يعالج أهم العوائق في سوق التمويل العقاري ويعزز أداءها
خبراء: تأمين تعثر الديون العقارية شبه معدوم في الإمارات‏
إطلاق برامج للتأمين على القروض العقارية ولو جزئياً يعزز من أداء السوق العقارية. الإمارات اليوم
‏‏أكد خبراء في مجال التأمين، أن منتجات التأمين ضد تعثر سداد القروض العقارية شبه معدومة في الدولة، نظراً لعدم وجود استعداد من قبل شركات التأمين لتغطية مسائل التعثر، خصوصاً تأمين الديون العقارية، إضافة إلى أن وثائق هذا النوع من التأمين عادة ما تُسعّر بقيم مرتفعة، ما يجعل من غير الممكن أن تكون في متناول المقترض.
وأضافوا لـ«الإمارات اليوم» أن هذا النوع من التأمين يحمي البنوك من تعثر المقترضين إلى أن يتم تحصيل الدفعات المتأخرة، أو التنفيذ على الضمانات الموضوعة للقرض، مشيرين إلى أن التأمين ضد التعثر في سداد القروض العقارية مربح جداً لشركات التأمين في أسواق أوروبا وأميركا.
وأكدوا أن شركات التأمين لا تشارك البنوك في تقييم الموقف المالي للعميل، وبالتالي فإن البنك يتحمل وحده مخاطرة عدم سداد العميل لأقساط القرض العقاري.
من جانبهم، قال مختصون في قطاع العقارات، إن إطلاق شركات تأمين، برامج تأمين على القروض العقارية، ولو جزئياً، يعزز من أداء السوق العقارية، مع تقاسم تحمل مخاطر عدم السداد بين البنوك وشركات التأمين، مؤكدين أن توافر هذا المنتج سيعالج واحداً من أهم العوائق المهمة في سوق التمويل العقاري�).
وأضافوا أن توفير منتجات تأمين على مخاطر عدم سداد القروض العقارية، سيشكل حافزاً أمام البنوك، لضخ سيولة للمشترين للحصول على وحدات سكنية من دون مخاوف من التعثر.
تغطية حالات التعثر
وتفصيلاً، قال مساعد مدير شركة «تكافل ري» لإعادة التأمين، تامر ساهر، إن «شركات التأمين في الإمارات لم تشارك مسبقاً في تغطية حالات عدم سداد القروض، لأنها لا تشارك في تحليل وتقييم الموقف المالي للعميل، وقدرته على السداد، الذي يتم في إدارة الائتمان في البنك المعني، لكنها تغطي حالات الوفاة والعجز»، لافتاً إلى أن «بعض الشركات لاتزال تغطي حالات فقدان الوظيفة في نطاق ضيق، نظراً لزيادة مخاطر وقوع هذه الحالات في ظل ظروف الأزمة الاقتصادية».
من جانبه، قال مدير عام شركة الوثبة الوطنية للتأمين، بسام جلميران، إن «منتجات التأمين ضد تعثر سداد القروض العقارية شبه معدومة، لعدم وجود استعداد من قبل شركة التأمين لتغطية مسائل التعثر، خصوصاً في موضوع تأمين الديون، إضافة إلى أن هذه الوثائق عادة ما تُسعّر بقيم مرتفعة، ما يجعل من غير الممكن أن تكون في متناول المقترض».
وأضاف أن «البنوك تمول العملاء على مسؤوليتها، وفي حال تعثرهم، فإنها تكتفي بالاستحواذ على الأصل العقاري لبيعه»، مشيراً إلى أن «هذه الوثائق متوافرة في أسواق خارجية، لكن انحسارها أخيراً يعكس الأزمة المالية العالمية التي كانت نابعة أصلاً من التوسع في هذا النوع من الإقراض».
وقال إن «هناك شركات تأمين كبرى تعرضت لخطر الانهيار لأن مخاطر هذا النوع من التأمينات عادة ما تكون عالية، حيث تعتمد درجة الخطورة على الوضع الاقتصادي عموماً، ومدى انتعاشه».

ولفت إلى «انخفاض نسبة مساهمة البنوك في القروض العقارية من 85٪ إلى 70٪، فيما يُموّل المقترض النسبة المتبقية، نظراً لارتفاع المخاطر في القروض العقارية».
وأوضح أن «هناك نوعاً شبيهاً بتأمين التعثر في سداد القروض العقارية، تسمى بـ(بوليصة تأمين على الحياة)، توفرها شركات تأمين بالتعاون مع بنوك في حالة الوفاة أو العجز الدائم، حسب عُمر الشخص ووضعه الصحي، وبموجب هذه البوليصة، يتم دفع المبلغ المستحق أو المتبقي من قبل شركة التأمين للبنك».
وثائق غير إلزامية
إلى ذلك، أكد مدير عام شركة دبي للتأمين، عبداللطيف أبوقورة، أنه «وفي ظل التوسع الكبير في الإقراض العقاري، لاحظت بنوك أن حالات التخلف عن السداد، أو التعثر من قبل مقترضين، عادة ما تكون بنسب قليلة جداً، لذلك فإنها لم تجد حاجة كبيرة لطلب التغطية التأمينية عليها، كي لا تضيف أعباء إضافية على المقترضين وعملائها».
وأوضح أن «البنوك أدركت في الوقت ذاته، حجم الخطر في حال وفاة المقترض، ولهذا طلبت وثائق تأمينية تغطي مخاطر السداد في حال الوفاة»، لافتاً إلى أن «شركات التأمين لا تمتلك خبرة فنية كافية وقدرات تؤهلها لتسويق هذه المنتجات في السوق».
وأضاف أن «معظم وثائق التأمين على الديون والقروض ليست إلزامية، ولا تطلبها البنوك، نظراً لأنها لم تتعرض لحالات عدم سداد أو تعثر كثيرة».
تأمين مربح جداً
بدوره، قال خبير التأمين، مدير عام شركة (وايت لو) لتقدير الخسائر والأضرار، يوسف جبور، إن «هذا النوع من التأمينات في السوق الإماراتية قليلة، إلا في حالات استثنائية جداً يجلب وثائقها بعض وسطاء التأمين من الخارج»، لافتاً إلى أن «نسبة هذه الأقساط من إجمالي أقساط التأمين في الدولة تقل عن 1٪».
وأوضح أن «البنوك ترى في العقار ضمانة، يمكن بيعه في حال التعثر، لذلك لا تطلب من المقترضين هذه الوثائق، إضافة إلى أن إمكانات شركات التأمين في المنطقة محدودة جداً، ولا تتوافر لديها خبرات وكفاءات قادرة على إدارة هذا النوع من التأمينات».
وبيّن أن «التأمين ضد التعثر في سداد القروض العقارية، مربح جداً لشركات التأمين في أسواق أوروبا وأميركا»، مستبعداً حاجة السوق الإماراتية لهذا النوع من التأمينات.
وأضاف أن «قيمة قسط التأمين على قرض عقاري بمليون دولار، يصل إلى نحو (1.5 أو2٪)، وفي حالات نادرة إلى 3٪ من القيمة الإجمالية للقرض في الأسواق الأوروبية والأميركية، حيث انه كلما ازدادت قيمة القرض، قلت النسبة التي تُحصلها شركات التأمين من المقترض».
تعزيز للسوق العقارية
وفي السياق ذاته، قال المدير العام في شركة هاربور العقارية، مهند الوادية، إن «إطلاق شركات التأمين، برامج للتأمين على القروض العقارية ولو جزئياً، يعزز من�أداء السوق العقارية، مع تقليل تحمل مخاطر عدم السداد بين البنوك وشركات التأمين».
وأكد أن «إتاحة منتجات التأمين على مخاطر عدم السداد للقروض العقارية، سيشكل حافزاً أمام البنوك، لضخ السيولة أمام المشترين، للحصول على وحدات سكنية من دون مخاوف من عدم السداد»، لافتاً إلى أنه «يمكن لشركات التأمين أن تضع بعض الضوابط بالتعاون مع البنوك، لضمان أفضل تطبيق يجعل من هذا النوع من التأمين محفزاً للقطاع العقاري الذي ت�*زايد فيه الفرص، مع تراجع الأسعار بشكل ملحوظ خلال السنوات الماضية».
وأوضح أن «فقدان السيولة بسبب الأزمة المالية، أدى إلى معاناة نحو ثلثي بلاد العالم من الركود الاقتصادي»، مشيراً إلى أنه «وبحسب تقديرات الأمم المتحدة، فإن أكثر من 90 مليون شخص، يقعون في خانة الفقراء نتيجة للأزمة، كما تراجعت التجارة العالمية بنسبة 10٪ للمرة الأولى منذ ثلاثة عقود».
وتابع «تبلغ قيمة ديون البنوك في العالم نحو 4.6 تريليونات دولار، فيما يتطلب العودة إلى النمو زيادة معدلات الادخار»، لافتاً إلى أن «عدم وفاء المصارف بالتزاماتها في الوقت المناسب، يمكن أن يتحول إلى صدمة كبيرة، ويؤثر في وضع البنك وسيولته محلياً وخارجياً، ولذلك يجب أن تكون المصارف مستعدة للتعامل مع الصدمات غير المتوقعة من السيولة».
وأضاف أنه «يمكن للبنوك تأمين أموالها عن طريق شركات التأمين، التي بدورها تعيد التأمين لدى شركات إعادة التأمين»، موضحاً أنه «إذا واجه البنك مستثمراً متعثراً غير قادر على سداد التزاماته لأسباب خارجة عن إرادته، مثل الإفلاس، فإنه يلجأ إلى المفاوضات أو التسوية لحل الوضع، أو إلى بيع أو رهن الاستثمار».
وقال إن «البنك يقوم بجميع المحاولات لاسترداد أمواله لمدة ستة أشهر، وهو العرف المتبع، ومن ثم تتدخل شركات التأمين، لتقوم بعمليات تحقيق خاصة بها قبل تغطية المبلغ المفقود».
مخاطر طبيعية
من جانبه قال المدير الإقليمي في شركة «جونز لانغ لاسال» للاستشارات العقارية، فادي موصلي، إن «شركات التأمين المحلية تؤمن على القروض العقارية ضد مخاطر الوفاة، أو الحريق، أو المخاطر الطبيعية الأخرى، التي تتعرض للعقار، لكنها لا تؤمن ضد مخاطر عدم السداد»، مشيراً إلى أن «بعض الجهات الحكومية تنفذ هذا المنتج التأميني، عند توزيعها للوحدات السكنية للمواطنين، لكن ذلك غير ممتد للعقارات الخاصة، ولا تقوم البنوك بهذا الإجراء».
وأضاف أن «البنك هو الجهة التي تختص بالنظر في القوة الائتمانية للعميل، وتحدد ما إذا كانت ستمنحه التمويل العقاري أم لا، وبالتالي فإن البنك يتحمل وحده مخاطرة عدم سداد العميل لأقساط القرض».
وأوضح أن «شركات التأمين تعمل في التأمين على المخاطر العشوائية، لكن عدم سداد القرض العقاري يعد مخاطرة غير عشوائية لا تغطيها شركة التأمين»، مبيناً أن «توافر هذا المنتج سيعالج واحداً من أهم العوائق المهمة في سوق التمويل العقاري، لكنه يعتبر أحد العوامل غير الأساسية لتحريك السوق العقارية في الدولة».

More buyers get lawyers to read the fine print

Article from Emirates Business 24-7

Article from Emirates Business 24-7

Property owners are concerned over growing disputes and investment security.

The number of property dispute cases filed in Q1 2009 increased by 55 per cent compared to Q4 2008. (EB FILE)

Increasing real estate disputes and concerns over security of a property investment are prompting buyers to seek legal advice prior to making a transaction, according to agents.

“Clients have serious concerns over the security of their real estate investments. Further, increase in number of real estate disputes is a result of many prospective buyers seeking legal advice prior to making a transaction,” said Mohanad Alwadiya, Managing Director, Harbor Real Estate.

“This was not the case in previous years which also contributed greatly to the problems that clients were facing as proper due diligence was not conducted prior to the sale and purchase of property,” he said.

Speaking to Emirates Business in a round table, Shilpa Guruswamy, Head of Legal and Sales Coordination, Asteco Property Management; Charles Neil, CEO, Landmark Advisory & Landmark Properties and Liz O’Connor, Director – Residential Sales & Leasing, Better Homes, said they were ensuring all correct steps were followed within their companies and ensuring all documentations were in place before a transaction is completed.

Do you have a law firm that advises you on the authenticity of your real estate transactions?

Guruswamy: Yes, we have a legal department, which oversees our transaction details and is also responsible for the compliance and risk mitigation process.

Neil: We have law firms to draw up all our documentation which protects the rights of our clients. Our accounts are audited by one of the four big auditors in order to ensure there is a clear distinction between our funds and our clients’ funds.

Real estate agencies, however, should be careful using companies claiming to be trust companies as they are not regulated, and if they have doubts they should use a reputed company of lawyers instead.

O’Connor: Yes, we do have a lawyer on board who manages our legal procedures and contractual obligations on transactions. Through our in-house lawyer as well as our managers, we ensure that all correct steps are followed and documentation is in place before a transaction is completed.

Alwadiya: In 2009, we joined forces with Prestige Legal Consultants, an international law company, to provide counselling and representation to all our clients in all legal matters concerning real estate in Dubai.

This partnership was started to keep in line with our vision to evolve our services from traditional real estate brokerage of merely bringing buyers and sellers together to world-class end-to-end real estate services. The holistic real estate legal services will complement our diverse line of services and govern all the activities and transactions of our clients.

The combined real estate experience of our firms enable us to provide clear candid counsel and guidance to our clients at all times to ensure that their rights are always protected.

Is this a new trend due to the downturn in the real estate sector?

Guruswamy: Real estate transactions, whether sales, lease, or appointment of sub-agents, are all essentially structured through legal contracts. Therefore, all these underlying documents need to be verified to ensure compliance to statutes and contract laws.

It is not a new trend but as the market matures there is greater emphasis on regulation and transparency. Therefore, there is increased need to have people with necessary legal background and expertise to scrutinise or draft documents. It is in no way related to the downturn because we had a legal department in place and operational long before the onset of the downturn.

Neil: We feel there should be laws allowing the setting up of trust accounts, but in our case customers trust us as we have strong finances and strong shareholders.

O’Connor: No, for us this is not as a result of the downturn in the real estate sector. We created this position a number of years ago due to volume of transactions and to oversee our international operations.

Alwadiya: Real estate-related enquiries have increased since the 2008 financial downturn. Many of the clients have serious concerns about the security of their real estate investments.

It was estimated that the number of cases filed in the first quarter of 2009 increased by 55 per cent compared to the fourth quarter of 2008. This drastic increase in the number of real estate disputes is a result of many reasons ranging from investors not fulfilling their obligations, sale and purchase agreements containing provisions that contradict the law about developers not delivering projects on time, and many more.

Prospective buyers are also seeking legal advice prior to making a transaction. This was not the case in previous years and also contributed greatly to the problems that clients were facing as proper due diligence was not conducted prior to the sale and purchase of property.

Most of the current legal enquiries that our legal division receives are usually concerned with the real estate regulations and legislations.

The profound perception of the industry and the daily interface with real estate clientele have resulted in the espousal of a fresh innovative legal counselling scheme. According to a recent study conducted by Harbor research division, majority of people perceive legal counseling as an exhorbitant service which leaves them with no alternative other than staying unaided and frustrated.

For that reason, the legal solution introduced by Harbor & Prestige is viewed as a results-driven method. Customers who seek legal counselling will incur minimal fees and no extra charges will be required in case of not winning the case.

Real Estate Regulatory Agency (Rera) recently proposed a free legal advice service for buyers and sellers, an initiative that we applaud. We believe that this innovative policy will assist in boosting the confidence levels in the real estate industry.

Can you specify which particular transactions are scrutinised by your analysts and lawyers?

Guruswamy: The legal department is involved in overseeing all transactions not limited to primary sales, secondary sales, leases, registration at the Land Department verification of power of attorneys etc. Should a party to the transaction be a corporate body, incorporation documents of companies need also to be verified.

Neil: We do use lawyers for more complicated transactions and are working with one firm to do conveyance transactions.

O’Connor: We have standardised processes and procedures that govern every transaction. Our in-house legal advisor oversees all the legalities of these processes to ensure that all parties, wherever possible are secure.

Alwadiya: The legal services introduction is vital as the real estate market matures through the current economic crisis to become a more structured and regulated market. We obtain legal counselling for all our transactional activities in order to ensure providing our clients with a secured transactional experience. Needless to say, the more complex and high-end the transaction is, the more legal involvement we require.

Do you collect a deposit from a client in order to lock-in your clients?

Guruswamy: We generally do not encourage collection of deposits. However, should there be a delay in completion of transaction, a deposit may be collected by the agent to secure buyer’s interest and lock the seller to a commitment. In this case the agent takes up the role of an escrow agent.

In case of default, deposit maybe forfeited and returned to the aggrieved party. On successful closure of the deal, the deposit is adjusted towards the balance sale price of the transaction.

Neil: We only take deposits as part of a transaction and to secure the rights of the parties involved in a transaction, we don’t take it in to lock in a client. If the deal falls through, then the deposit is returned in the manner agreed upon by the parties at the time of signing the agreement. Sellers can no longer demand deposits and hold on to them.

O’Connor: We have now begun to encourage our customers to hold their deposit with a Rera-approved escrow facility, but in the absence of an escrow we take a deposit from the buyer as security for the seller.

Alwadiya: Accepting deposits from potential buyers or tenants is a common practice in the property market which is usually used as a closing technique or a gesture to test the seriousness of the potential client. More sellers and landlords are starting to ask for deposits as well in order to secure their interest in the transaction, especially when the closing date of the transaction is delayed for justified reasons such as releasing a property mortgage or finalising the transaction contracts or obtaining a date to conduct the transfer at the developer’s office or the Land Department.

We try to avoid retaining any deposits at our end as this is an added liability on us and it can place us in a conflict of interest situation as we usually represent only one part in the transaction. Having said that, we usually recommend that deposits are usually handed by a financial or legal third party entity with neutral position in relation to the parties involved in the transaction.

Do you maintain a separate account to receive agents’ commissions?

Guruswamy: Commission fees are payable to the agent by the parties involved and shall not form a part of the purchase consideration.

Normally, the purchase consideration is exchanged between the buyer and seller and the commission is paid to the agent. Therefore, there is no possibility of both of them being booked into the same account. However, should the agent be involved in collecting the booking deposit, it is booked separately into a designated account, which is distinct from all other operational accounts. Such payments are held on behalf of the buyer and seller and do not form part of the operational funds of the agent.

Neil: No comment.

O’Connor: We have an accounts department and we run a series of profit centres, most of which have commissions as the primary revenue source.

Alwadiya: Our company’s bank account is supervised by an independent certified accounting and auditing firm. Our internal accounting and finance resources follow the processes and guidelines set by this consultant/firm in order to ensure complete compliance with the best financial and accounting standards.

Ask the Experts

Article from Freehold Monthly

Article from Freehold Monthly

Every month we invite you to have your property questions answered by an expert. This month, Mohanad Alwadiya tackles the task.

Q I’ve been looking at a few Union Properties developments, but am unsure about buying leasehold. How does this differ to freehold property in Dubai?

A The choice between freehold and leasehold property depends mainly on your particular needs and the asset type you wish to invest in. If you wish to buy a property for a limited number of years or you are buying a property to benefit from its annual rental yield, leasehold should be your preferable option as the cost would be considerably less compared to freehold. Similarly, the cost of leasehold for 30 years will be less than that for 99 years. Leasehold is common in many established overseas markets for high-rise apartments and integrated communities. This represents a benefit for owners in Dubai particularly as certain owners may visit infrequently and ‘forget’ to pay their maintenance bills. Under leasehold tenure contracts, the landlord could apply for an eviction order after a long period of non-payment, therefore safeguarding the integrity of the whole property or community.

Q Judging from the property classifieds, rents in Dubai Marina haven’t gone down much at all. Some even seem to have risen despite more supply coming on to the market. I’d like to buy an apartment to live in at the Marina; I’m just wondering which towers and areas of the Marina are the best options for long-term appreciation?

A During Q3 2009, Dubai Marina apartments witnessed a noticeable increase in rental rates, fuelled by the increased demand from visitors and tenants from Dubai and Abu Dhabi. This factor provided sellers and landlords with room to reconsider their offered prices with the aim of maximising their return on investment. Estimating long-term capital growth requires some careful thinking. This is where certain considerations such as location, property type, views, quality of structure, fit and finish, amenities, developer reputation and an estimation of future demand are taken into account.

You should seek some professional advice from property consultants. Given your personal objective is to maximise capital appreciation, I would recommend you consider towers in the central part of the Marina next to JBR (e.g. Al Sahab or Marina Promenade towers), and minutes away from The Walk.

Q I’m thinking of leaving my job and setting up a small company in a free zone. I’ve been impressed by some commercial buildings at Jumeirah Lakes Towers (JLT) as I do a lot of work in Abu Dhabi. Should I get a multiple-year lease at a discounted rate, or opt for something more short-term?

A I believe that the recession may be the best time to start a new business as you will be able to generate great savings and benefit from the reduced inflation rates which can impact your start up costs. JLT enjoys a strategic location and has a fantastic master plan. It also has a good balance between office and residential space.

Office tenants have the tendency to relocate less frequently compared to residential tenants due to cost of relocation, interior design and building client familiarity with their location. Since you will be able to obtain a better bargain from a long-term lease, I would suggest you opt for the multiple-year lease contract at a discounted rate which will only help reduce your set up costs and overheads over time.

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Real estate legal advice a growing sector

Article from Freehold Monthly

Article from Freehold Monthly

Dubai – Real estate legal services are becoming more popular among existing investors and prospective buyers in Dubai.

Dr. Ali Al Jarman, legal partner – Harbor Real Estate and founder of Prestige Advocates, says real estate-related enquiries have increased since the 2008 financial downturn. “Many of our clients have serious concerns over the security of their real estate investments,” he says.

Prospective buyers are also seeking out legal advice prior to making transaction. “This was not the case in previous years and also contributed greatly to the problems that clients are facing as proper due diligence was not conducted prior to the sale and purchase of property. Most enquiries are usually concerned with the real estate regulations and legislations such as the date of completion of a project, delay penalties, invalidity of the contract, cancellations and payment commitments.”

RERA (Dubai’s Real Estate and Regulatory Agency) has recently proposed a free legal advice service for buyers and sellers, an initiative that Dr. Ali applauds: “We believe that this innovative policy could also assist in boosting the confidence levels in the real estate industry,” he says.

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Realty brokers get new professional status

Article from Emirates Business 24-7

Article from Emirates Business 24-7

Dubai’s Real Estate Regulatory Agency (Rera) yesterday announced an agreement with the Ministry of Labour (MoL) to have real estate brokers recognised as a new professional category.

Labour cards and residence visas issued to real estate brokers will now include their designation and henceforth not be categorised as “sales staff”.

Marwan bin Ghalita, Chief Executive Officer, Rera, said: “This is the first step towards a complete classification of real estate professions in Dubai.

“The practical objective is to make sure each real estate professional’s designation reflects what he does so buyers and sellers are clear that they are dealing with properly qualified, competent, licensed and registered professionals.”

He said: “The overall effect will be to increase transparency and professionalism across the sector. This in turn will boost confidence in property dealings and in the networks agents and third-party investors depend on to execute their transactions.

“Previously, there were no officially-recognised categories for real estate professionals and none was recognised by the ministry. Rera, as the custodian of these professional services, took the initiative and approached the MoL.”

“The ministry has now approved the first step of officially recognising broker as a professional category and this will be included in all the related professional and operations documents,” said bin Ghalita. “So when firms come to renew their registration and labour permits these will be issued with the new designation.”

Effectively, this step completes the three-stage formal approvals procedure of registration, licensing and now labour permit and residence visa to support the professional qualifications and training of real estate practitioners in Dubai. This compulsory system will take Rera’s campaign to outlaw “rogue practitioners” to its conclusion.

Rera has, as part of its agreement with the MoL, set up an electronic link direct to the ministry, which will allow the exchange of information to speed up processing of labour permits.

Humaid Al Rashid, Head of the Labour Affairs Department in the MoL, said: “We were only too happy to co-operate with Rera and to support it in its aims.”

Mohanad Alwadiya, Managing Director, Harbor Real Estate, said: “While the efforts to protect rights, lift standards of professionalism and establish a transparent framework are to be applauded in Dubai, there is still a long way to go before the industry can be said to be in the final stages of maturation.

“The new agreement between Rera and the Ministry of Labour to have real estate brokers officially recognised as a separate professional category is a step on the right direction.”

Hiba Jaber, Chief Operating Officer, Landmark Properties, said: “We support this initiative as introduced by Rera and MoL. We firmly believe that once professionals are properly categorised in accordance with their qualifications and credentials, investors and end-users will have a clear direction on who to contact when seeking help and advice from the professionals.”

Partho Bhattacharya, Director of HR, Better Homes, said: “This is a good step in the right direction where real estate agents will get recognition as professionals. The MoL must recognise the Rera certificate to grant a work permit. Such real estate professionals should not be asked for any other educational certificate for grant of work permit.”

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New property laws help turn Dubai into global destination

Article from Emirates Business 24-7

Article from Emirates Business 24-7

Laws and regulations introduced under the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, have transformed the emirate into a more mature market and global real estate destination.

“The vision and leadership of Sheikh Mohammed has positioned Dubai as a global city and one of the most renowned business hubs in a record time. His Highness focused on attracting international investors and building a world-class infrastructure which made Dubai, as we know it today, the location of choice for residents, businesses and visitors,” said Mohanad Alwadiya, Managing Director, Harbor Real Estate.

When it comes to real estate, Dubai set a new global benchmark and has introduced iconic projects to the world that covered all kinds of asset types and interests including the Dubai Media City, Dubai Internet City, Knowledge Village, Burj Al Arab, Emirates Towers, Dubai Marina, Business Bay, Dubai Festival City, Dubai Silicon Oasis, Downtown Burj Dubai, Emirates Living, Dubai International Financial Centre (DIFC), Burj Dubai and the Palm Trilogy.

Sheikh Mohammed’s vision did not start with the real estate developments, he ensured establishing the suitable infrastructure to support the real estate boom and its sustainability. The development of the Dubai Ports Authority, the introduction of Roads and Transport Authority (RTA) and industrial and specialised business zones have contributed to setting Dubai up to become one of the main trading, tourism and culturally rich cities of the world, he added.

Dubai, under Sheikh Mohammed, became the first city in the Gulf Co-operation Council to introduce a real estate regulatory body under the auspices of the Land Department.

The Land Department has continuously strived to keep up with the development and prosperity of the emirate. Through the leadership of Sheikh Mohammed, who always strives to be the best and definitely world-class in everything he plans, guiding with an extraordinary skill, passion and intelligence, the “vision of Dubai” has become the world’s most incredible reality and yet still, there is even more to come.

Supported by Sheikh Mohammed, the Land Department is planning and implementing services to participate towards making Dubai the leading city of the world, the Department said on its website.

The Government of Dubai instituted new rules, regulations and laws in the emirate to regulate the market, to protect the rights and interests of consumers, and to ensure Dubai property investors are assured the highest possible service standards from real estate agents, brokers and property developers transacting business in Dubai and maintain the integrity of all the developments.

The Department launched a number of laws and regulations that regulate the property sector. Starting with Law No7 concerning land registration in Dubai, Law No3 concerning areas of properties that can be owned by non-UAE nationals in Dubai, Law No8 concerning property trust account in Dubai, Law No 85 concerning real ease agent regulation and the upcoming strata law.

Alwadiya said: “The young Dubai property market has come a long way with regards to regulating the real estate industry. While the efforts to protect rights, lift standards of professionalism and establish a transparent, credible and functional framework are to be applauded, there is still a long way to go before the industry can be said to be in the final stages of maturation.

“Over the past years, the government has adopted numerous legislations and regulations to protect everyone in the real estate sector, and most importantly establish a safe environment for investors. Dubai has proven to be the world’s greatest improver in terms of real estate transparency over the past two years. With the establishment of regulatory bodies such as Rera, investor representative bodies, the establishment of codes of practice for real estate practitioners combined with laws relating to freehold ownership, escrow accounts and strata titling, Dubai has reduced drastically the concerns of expatriate and foreign investors,” he added.

Transparency has also been given a boost with the introduction of the credit information law, a positive step towards transparency and risk mitigation for banks. The law will create a framework of rights and obligations for data providers, information users and individuals alike, Alwadiya said.
Saeed Mirsaeedi, Investment Manager of Sherwoods Real Estate, said: “Introduction of new laws has been a positive development and has helped Dubai’s emergence as a mature and prosperous economy.

“Clear-cut regulations and increasing transparency make Dubai property most attractive to overseas investors,” he said.
Although previously non-Gulf Co-operation Council expatriates were only permitted to rent property, or own property on a 99-year leasehold basis, all changed in 2002 when the Dubai Government took the initiative and permitted the ownership of freehold property to expatriates. This bold initiative changed the perception of the real estate industry in the Middle East and the Gulf.

The Dubai Government began the promotion in 1997 by setting up Emaar Properties. The next year, Emaar began work on Dubai Marina followed by the Emirates Living Community developments such as the Springs, the Meadows, Emirates Hills, etc. However, the major property boom in Dubai occurred in May 2002, when Sheikh Mohammed issued a decree to allow foreigners to buy and own freehold property in selected areas of the city, now referred to as New Dubai.
On March 14, 2006, Dubai’s Government issued a law legalising foreign ownership of properties in designated areas of Dubai.

“It was the adoption of freehold tenure in general, and foreign ownership in particular, that sparked the great real estate boom in the Dubai property market,” said Alwadiya.

The introduction of the freehold law by the Ruler transformed Dubai into a true success story capturing the imagination and admiration of countries worldwide. Many countries followed the Dubai model and benefited greatly from its visionary experience.

Dubai has developed several iconic real estate projects, which have acquired international recognition, marketing the emirate as a destination of choice for business and travel and for investment in real estate.

The Palm trilogy and other iconic projects such as The World have put Dubai in international limelight. Furthermore, prospective developments of creative concepts, which are likely to attract significant visitors in the coming years, continue to take shape. Burj Dubai, the tallest tower in the world, will be opens today. Although Dubai International Financial Centre formally opened as a global financial centre in 2004 with the aim to become the global hub for financial services in the Middle East, it has also emerged as one of the most expensive addresses for real estate in the emirate.

In fact, property prices on residential units in the DIFC are becoming increasingly comparable with the leading capitals of the world. Dubai’s real estate industry dynamics are firmly entrenched in Dubai Strategic Plan, which strives to achieve a medium-long term objective of diversifying the economic base of the emirate in key growth areas, which have been defined as priority sectors within the associated blue print. Of particular significance is the focus of the plan on the real estate development and the construction sector, as well as travel and tourism, with the former providing necessary infrastructure for growth of all other businesses, and the latter ensuring sustained economic buoyancy through continuous and aggressive growth in visitors to the emirate.

The investor-friendly business environment in Dubai has promoted not only businesses but also a demand for office space, and the high real incomes have ensured that the labour force is increasingly imported from abroad, thus catalysing requirements for housing and retail.

Iconic projects

Dubai has introduced some of the most iconic destinations that cater for different lifestyles and asset categories. Some of them in the business and commerce segment are the DIFC, Business Bay, Dubai Internet City, Dubai Media City, Knowledge Village, Dubai Silicon Oasis, Dubai Maritime City, Tecom, Jebel Ali Free Zone and Dubai Healthcare City.

In entertainment, lifestyle and culture segment falls the Dubai Festival City, Downtown Burj Dubai, Emirates Living, Dubai Mall, Ibn Battuta Mall, Palm Jumeirah, Burj Dubai and Dubai Marina.

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Rent caps set to be maintained at 2009 levels

Article from Gulf News

Article from Gulf News

Dubai-His Highness Shaikh Mohammad Bin Rashid Al Moaktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has announced that the rent increase caps for 2010 remain at the same rates as 2009.

Endorsed by the Real Estate Regulatory Authority (RERA), the rent cap states the maximum increase in rent landlords can impose each year.
The 2010 figures have been formed following the trends shown in RERA’s latest rental index. It states that increases can only occur if the property is more than 25 per cent below the average index price.

If the rent is 26 per cent to 35 per cent less than the average rent for a similar property, the maximum increase will be equivalent to 5 per cent of the rent value of the year 2009.

Pattern

If the rent is 36 per cent to 45 per cent less than the average rent for a similar property, the maximum increase will be equivalent to 10 per cent of rent value of the year 2009.

If the rent is 46 per cent to 55 per cent less than the average rent for a similar property, the maximum increase will be equivalent to 15 per cent of rent value of the year 2009.

If the rent is less by a percentage that is more than 55 per cent of the average rent rate, a 20 per cent increase is permissible.
‘Positive move’

“I think the decision to keep the rental cap the same as 2009 is good as it keeps the market in the same condition and doesn’t have that much of an impact as of now.” Sudhir Kumar, managing director of Realtors International told Gulf News.

The decree was implemented to curb the sky-rocketing rents and to regulate relations between landlords and tenants.

“It’s a positive move because it shows that regulatory operations are taking charge. However, there should be more enforcement on the individual landlords who are still breaking the values of the caps and are not abiding to the decree. A closer eye should also be kept on the fluctuating prices with the rent cap keeping up to speed.” said Mohanad Al Wadiya, managing director of Harbor Real Estate.