Role of recently initiated Dubai Real Estate Court

                                                                                         

At last some relief for investors, as Dubai Real Estate court (AKA Dubai property court) in its first and extensively publicized ruling has ruled in favor of the investor, asking the developer (Mizin) to reimburse the payments made to them by the plaintiff. Prior to this decision, many investors were stuck after they've decided to invest in some off-plan properties, where the construction works never begun or were brought to a standstill in preliminary stage. At a time, when the investors were getting alarmed to a greater extent after listening to similar stories coming from everywhere, it was very important for regulatory bodies to restore investor’s trust and tone down the “scam developer’s mafia”. Bear in mind that RERA is also going to introduce a new rating system for developers, these ratings will be based on their projects, financial stability and presence in the market.

Dubai property court has been looked upon as a ray of light by investors; remember Mizin is a subsidiary group of Tatweer that happens to be one of the biggies in Dubai real estate market. If Dubai Real Estate court can continue to serve justice in the same manner (with a little more speediness though), it’ll give a huge boost to investor’s trust.

Role of Real Estate Court:

Despite the continuous words of warnings issued by RERA for investors to be on your guard when dealing with developers or brokers who are not licensed by RERA, or when there’s no Real Estate Trust Account involved, many investors still fell in the trap. Sometimes, because they were too impatient to check into these details and sometimes because these forewarnings never reached them, as a result more and more disgruntled investors were creating a negative buzz about Dubai real estate market.

In its early days, role of Dubai Property Court will most probably be limited to dealing with these displeased investors and developers, as both parties find themselves in hot waters because of ongoing financial crisis. Developers are struck by the lack of finances to carry out constructions, while investors are getting panicked even if there’s a little postponement in the completion date of the project. Also, among these genuinely victimized investors, there are speculators who do not want to make further payments because the prices are not rising to their liking. Therefore, the court has to walk on a fine line, as both developers and investors are equally important for a vibrant real estate market and upsetting any one of them can prove to be counter productive for Dubai market.

About the author:
William King is the director of http://www.bayut.com> UAE Dubai Property & Dubai Real Estate Properties Portal , Pakistan Real Estate & Pakistan Property Portal , http://www.bayut.com/rent.html > Dubai Property Rentals & Dubai Rents and Property & Real Estate Directory . He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.

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