Source: WAM (Emriates Govt News Agency) abridged
======================
H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, in his capacity as the Ruler of Dubai, today issued a decree setting the maximum allowed increase in property rent values in 2010.
For properties rented in 2009 and before, the maximum increase in rent value shall be set as per the previous relevant similar decree for 2009.
The decree approves the Real Estate Regulatory Authority's (RERA) price index which shall be followed as the reference for setting any increase in rent values in 2010.
The new decree prevents any increase in rent values as long as they are less by a maximum of 25 % than the average rents of properties of similar specifications.
The maximum allowed rental increases shall be as follows: - 5% increase if the rent value is 26% to 35% less than the average rent of properties of similar specifications.
-10% increase if the rent value is 36% to 45% less than the average rent of properties of similar specifications.
--15% increase if the rent value is 46% to 55% less than the average rent of properties of similar specifications.
--20% increase if the rent value is less by a percentage that is more than 55% of the average rent of properties of similar specifications.
The decree goes into immediate effect and shall be published in the official gazette.
The decree also defines a new formula for lower rent values which allows a proportional increase in rents for 2009. According to the new formula, the increase in property rent will rise in proportion with the drop in 2008 rent value in the average annual rent for the same property.
Showing posts with label RERA. Show all posts
Showing posts with label RERA. Show all posts
Thursday, 31 December 2009
Thursday, 25 June 2009
See you in Court: The postscript
One final post about last night's Rent Tribunal appearance.
We left the Court at the same time as the landlord's representative and he got into the lift with us. As the lift headed down he leant over and said to Colin in a very hushed, confidential tone "Don't worry Sir, I can help you."
Don't worry Sir, I can help you?? WTF does that mean??
I thought for an instant that I'd been transported into an episode of the Sopranos. "Don't worry Sir, I can help you."? What do you think he meant, did he mean something like "I can make all this disappear" or "I can get your satellite tv hooked up for free" or possibly even "I can have somebody whacked". Who knows?
Who's he kidding "....I can help you". We pay the money as instructed by the Court and khallas, the matter is over and done with.
"Don't worry Sir, I can help you". Good grief.
We left the Court at the same time as the landlord's representative and he got into the lift with us. As the lift headed down he leant over and said to Colin in a very hushed, confidential tone "Don't worry Sir, I can help you."
Don't worry Sir, I can help you?? WTF does that mean??
I thought for an instant that I'd been transported into an episode of the Sopranos. "Don't worry Sir, I can help you."? What do you think he meant, did he mean something like "I can make all this disappear" or "I can get your satellite tv hooked up for free" or possibly even "I can have somebody whacked". Who knows?
Who's he kidding "....I can help you". We pay the money as instructed by the Court and khallas, the matter is over and done with.
"Don't worry Sir, I can help you". Good grief.
Investors form action group against Dubai developer
From ArabianBusiness.com 25 June 09A group of investors are locked in a dispute with Dubai developer ACW Holdings after significant delays to its projects. Investors, some of whom have paid up to 80 percent of installment payments on units, have written to Dubai property watchdog RERA (the Real Estate Regulatory Authority) demanding a refund and cancellation of ACW’s projects over fears they may not be completed.
Around 85 property buyers have formed an action group called ACW Investors.
Some have refused to sign contracts, which they consider to be unfairly drafted in favour of the developer.
One such investor is UK-based Chandra Kumar, who bought at ACW’s Hanover Square project in November 2007 and has paid 70 percent of installments. He said: “To date I have paid nearly 70 percent of the purchase price with nothing to show in return. The project is little more than a hole in the ground.”
"The contract is unreasonable. They are holding money and demanding money. I’ll see no return on my investment for three years- I want my money back,” he added.
Although the developer has insisted its payment plans have been changed and are now linked to construction progress, some investors complain they are still being instructed to pay date-based installments.
Only excavation work and no formal construction has started at five of ACW’s projects in the Arjan and Jumeirah Village districts in Dubai. (A photo taken earlier this month of the site is shown.)
A sixth project called Platinum Two is severely delayed due to a proposed road through the site by the Roads and Transport Authority (RTA).
“In the present economic climate it is easy for investors to feel nervous about their investment in Dubai. We as a company made the decision to focus all of our resources on construction,” the company said in an emailed statement to Arabian Business.
”We are in the business of building, and that is precisely what we are doing,” the statement added.
The developer blamed the late handover of plots from master developer Nakheel for the delay on its Jumeirah Village projects, which include residential schemes Kensington Manor and Knightsbridge Court together with Hanover Square, a serviced apartment project.
Scott Richards, director of client services at ACW said that apart from Platinum Two, the bulk of the company’s projects will come online by the middle of 2010, although the developer’s website states most schemes will be completed in the first quarter of 2010.
Hanover Square was originally scheduled for delivery in May 2009, according a Sales and Purchase Agreement seen by Arabian Business. But clause 2.4 of the contract states: “The Handover Date may be extended by the Seller for any Period or periods up to a maximum of one year.” In an email to one ACW investor in May, Essa Saeed Al Mansoori, head of the trust accounts section at RERA, said ACW’s projects were undergoing a "technical audit".
A spokesman for RERA said: “ACW is a registered developer and has five projects in Dubai and escrow accounts set up for each one and through which funding for all these projects is financed.
”ACW was established in 2004 and has two UK offices in London and Leeds as well as its Dubai operations in Emaar Business Park and Jebel Ali.
The company has launched seven freehold developments since 2006 with an asset value of AED5bn, according to its website.
Around 85 property buyers have formed an action group called ACW Investors.
Some have refused to sign contracts, which they consider to be unfairly drafted in favour of the developer.
One such investor is UK-based Chandra Kumar, who bought at ACW’s Hanover Square project in November 2007 and has paid 70 percent of installments. He said: “To date I have paid nearly 70 percent of the purchase price with nothing to show in return. The project is little more than a hole in the ground.”
"The contract is unreasonable. They are holding money and demanding money. I’ll see no return on my investment for three years- I want my money back,” he added.Although the developer has insisted its payment plans have been changed and are now linked to construction progress, some investors complain they are still being instructed to pay date-based installments.
Only excavation work and no formal construction has started at five of ACW’s projects in the Arjan and Jumeirah Village districts in Dubai. (A photo taken earlier this month of the site is shown.)
A sixth project called Platinum Two is severely delayed due to a proposed road through the site by the Roads and Transport Authority (RTA).
“In the present economic climate it is easy for investors to feel nervous about their investment in Dubai. We as a company made the decision to focus all of our resources on construction,” the company said in an emailed statement to Arabian Business.
”We are in the business of building, and that is precisely what we are doing,” the statement added.
The developer blamed the late handover of plots from master developer Nakheel for the delay on its Jumeirah Village projects, which include residential schemes Kensington Manor and Knightsbridge Court together with Hanover Square, a serviced apartment project.
Scott Richards, director of client services at ACW said that apart from Platinum Two, the bulk of the company’s projects will come online by the middle of 2010, although the developer’s website states most schemes will be completed in the first quarter of 2010.
Hanover Square was originally scheduled for delivery in May 2009, according a Sales and Purchase Agreement seen by Arabian Business. But clause 2.4 of the contract states: “The Handover Date may be extended by the Seller for any Period or periods up to a maximum of one year.” In an email to one ACW investor in May, Essa Saeed Al Mansoori, head of the trust accounts section at RERA, said ACW’s projects were undergoing a "technical audit".
A spokesman for RERA said: “ACW is a registered developer and has five projects in Dubai and escrow accounts set up for each one and through which funding for all these projects is financed.
”ACW was established in 2004 and has two UK offices in London and Leeds as well as its Dubai operations in Emaar Business Park and Jebel Ali.
The company has launched seven freehold developments since 2006 with an asset value of AED5bn, according to its website.
Tuesday, 12 May 2009
Is a second wave of job cuts coming to Dubai?
From ArabianBusiness.com
---------------------------------------
Dubai is considering cancelling 27 projects, the head of its real estate regulator said on Monday, as the emirate's property market slumps in the global downturn.
A decision whether to cancel or not would be made by the end of the month, said Marwan bin Ghalita, the head of the Real Estate Regulatory Authority (RERA). "The decision has not been done. They are projects all over Dubai - third party projects (sub developers)," he said.
Earlier this year, Ghalita said he believed 25 percent of projects will be cancelled in Dubai as a result of the global economic slowdown.
"It's almost the same," he said when asked if that figure had changed. The Dubai Land Department and RERA set up a committee last week to cancel projects in the emirate that are not feasible.
Real estate prices tumbled 41 percent in the first three months of the year, property consultants Colliers said in a recent report.
A collapse in property prices has already led to project cancellations in the region worth billions of dollars.
More than half of the construction projects in the United Arab Emirates, worth $582 billion, have been put on hold, Dubai-based market research firm Proleads said in February.
Ghalita said on Monday the committee would cancel projects based on RERA's decision whether or not they should continue, a request from developers to cancel, or through complaints to the watchdog from project investors.
In February RERA said Dubai developers are likely to delay the delivery of about 20 percent of residential units in 2009 and 40 percent in 2010.
A decision whether to cancel or not would be made by the end of the month, said Marwan bin Ghalita, the head of the Real Estate Regulatory Authority (RERA). "The decision has not been done. They are projects all over Dubai - third party projects (sub developers)," he said.
Earlier this year, Ghalita said he believed 25 percent of projects will be cancelled in Dubai as a result of the global economic slowdown.
"It's almost the same," he said when asked if that figure had changed. The Dubai Land Department and RERA set up a committee last week to cancel projects in the emirate that are not feasible.
Real estate prices tumbled 41 percent in the first three months of the year, property consultants Colliers said in a recent report.
A collapse in property prices has already led to project cancellations in the region worth billions of dollars.
More than half of the construction projects in the United Arab Emirates, worth $582 billion, have been put on hold, Dubai-based market research firm Proleads said in February.
Ghalita said on Monday the committee would cancel projects based on RERA's decision whether or not they should continue, a request from developers to cancel, or through complaints to the watchdog from project investors.
In February RERA said Dubai developers are likely to delay the delivery of about 20 percent of residential units in 2009 and 40 percent in 2010.
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