An expert initiative aims to revive the real estate sector
To help “Off-plan real estate investors “
The real estate expert, Chairman of “W Capital Real Estate Brokerage Company”, Walid Al-Zarouni, launched an Initiative aimed at helping real estate investors in projects that have hand-out problems .The Initiative is supposed to protect the rights of investors as well as boost the revival of the real estate market.
Al-Zarouni said that the ultimate goal of his initiative is to help the investor obtain a real investment alternative for his investments, rather than freezing his money in a project that was not successful.
According to the initiative, investors in projects that have not been started yet (off-plan), will be helped to replace their purchased units with other units in projects that are ready, or under construction at the time being , thus achieving recovery for the existing and under construction projects.
“Real estate brokers, in turn, provide these opportunities to investors through the real estate database available to them, which allows them to replace off-plan units purchased , with ones that are actually constructed. The Initiative entails the investor in some cases to replace his units with the developer himself. In this case what the investor paid becomes part of the price of the new property, which he will get in another completed project. The investor can guarantee his investment is not frozen nor his money lost, reduce the rate of loss to the lowest possible limit”, Al-Zarouni said.
AlZarouni pointed out that the current initiative reduces the expected damages to the parties of the real estate investment process, so the investor finds an alternative to his real estate unit that has not been constructed yet, and the developer gains a new customer in a real estate project that faces selling challenges, while the main developer who sold off-plan can sell the units in his project after paying back the investors’ money. The developer may also be able to sell the land, or enter into a partnership with other developers to implement this project.
He emphasized all the mentioned steps are legal as far as a sale and purchase contract, indicating that the new developer will take legal responsibility for off-plan projects in terms of suing the original developer, or negotiating with him.
The real estate regulatory bodies in the UAE have succeeded in establishing a strong legislation system to regulate the real estate sector, in order to ensure the sustainability of growth based on real demand by the end users. Real estate legislation covers all aspects such as the relationship between the owner and the tenant, and the processes of developing and selling real estate projects, as well as the process of liquidating troubled real estate projects.
The real estate legislation frame that has been developed over the past years constitutes a turning point for the UAE real estate sector , and enhances the sector’s ability to attract foreign investments, and to face future challenges .
Al-Zarouni praised the efforts made in this regard by some UAE regulatory bodies , such as “Tanmia” initiative launched by the Real Estate Investment Management and Promotion Center, the investment arm of the Dubai Lands and Properties Department, in September of 2012.That initiative succeeded in arranging partnerships between governmental and semi-governmental departments with large investment companies from inside and outside the UAE to adopt real estate projects , and ensure the return of those companies to the market.