The real estate sector in Dubai is a key driver of economic growth, one that has transformed the very nature of the city from a trading and commercial centre, transforming it into a truly global city with unique architecture, innovative thinking, and properties offering every level of entry for buyers and investors.
Key to that growth has been a regulatory environment that works with developers, investors, builders, sales personnel, buyers and those charged with managing and maintaining the upkeep of properties, developments and projects.
It’s fair to say that it hasn’t always been easy to find the right balance. Now, however, a new progressive law issued by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, strikes a balance on the responsibilities of developers and builders on the one hand and those who purchase, live and manage those developments on the other.
Rera, Dubai’s Real Estate and Regulatory Agency, has been empowered to oversee the upkeep of jointly owned properties in the emirate. The agency will also play a pivotal role in overseeing the way facilities management businesses bill their clients.
The new progressive law strikes a balance on the responsibilities of developers and builders on the one hand and those who purchase, live and manage those developments on the other
Under the new law, these facilities companies will have to issue formal reports on common areas, their upkeep and will have to provide detailed accounts for bills when required to do so. This is good news indeed for property owners who take issue with the way common areas are maintained and object to high bills. The effect of this is to regulate the joint-ownership of property more efficiently.
Significantly, the new law covers all properties in the emirate, including those purchased in free zones and special development zones, and the mechanism put in place for the Rental Disputes Centre will also play a role when it comes to resolving disputes over fees and management issues. The law also includes a significant penalty structure for those who fail to adhere to its full requirements.
For those who put their life savings into buying a new home, there is now a guarantee in law that the builder and developer has a fiduciary duty and a responsibility of care on their work for a 10-year period from the issuance of the completion certificate.
This clause alone ensures greater confidence in the overall quality of build and provides a decade of after-build care as a guarantee for homeowners. That effectively means guaranteed peace of mind.