UAE TIGHTEN THE SCREWS ON THE REAL ESTATE INDUSTRY
January 09, 2009
Yesterday, the Ajman government announced it is to create the Ajman Real Estate Regulatory Establishment to police the Emirate’s burgeoning property market, which has registered over Dh340bn worth of investment since 2006.
Meanwhile, the wider Real Estate Regulatory Agency (RERA) is to put in place further regulations on developers in the UAE, by stipulating that 20% of a development must first be completed before sales are allowed to begin.
The news comes as thousands of agents across the world face an uncertain future with several high-profile projects going under, putting commissions in jeopardy. Just last week, the RERA announced it is looking into plans to combat this by requiring a developer to fully own a plot of land before permitting construction to begin.
The government-backed organisation is also setting its sights on overseas brokers and said that, effective immediately, it will ban ‘freelance’ estate agents from operating in Dubai by ensuring that any broker who wishes to sell property in the Emirate should be over 18, take a RERA training course and pass a police clearance exam.
In addition, the Ministry of Interior is restricting visas issued to real estate companies who bring in foreign agents to work in the UAE, to curb the influx of temporary workers, which, it believes, might not act in the best interests of the country’s property sector.
"Due to such reasons the Ministry of Interior is taking measures to limit the issuance of these visas and confine them for large companies and that will be according to strict procedures to curb their exploitation for illegal purposes," said a Ministry spokesperson.
However, as other Emirates clamp down on foreign workers, Abu Dhabi is looking to extend international buyers’ rights in the region by establishing more ‘free zones’ that enjoy flexible ownership and taxation rights.
Source - OPP