RERA has set up a new department to be responsible for collection of payments to developers that are linked with construction progress. The Real Estate Development Trust Account Department was formed to enforce and implement the new rule that prohibits developers from collecting more than 20% of the cost of a property before construction begins.
This was introduced starting 2009 to help build back investor confidence, which has been disrupted due to a series of project delays being the aftermath of the global recession.
Credible information and assessment of current developers is vital to resurrect confidence in the property sector. Therefore developers in Dubai are to receive a ranking from RERA related to market experience and financial stability.
2013 Copyright. Coldwell Banker. All Rights Reserved
