Developers in Dubai are giving 100 per cent construction guarantee
“There are developers who have given 100 per cent construction guarantee and this is the ultimate guarantee,” said Marwan bin Ghalita without giving names of the developers. Rera chief said they were no longer afraid of projects being stalled, as developers were launching projects to build them than mere selling them.
He revealed that Dh29 billion are being held escrow accounts which reflects confidence of developers and investors’ in the market.
It is compulsory for every developer in Dubai to open an escrow account under Law No. (8) of 2007 concerning escrow accounts for real estate development. All the payment received from investors has to be deposited in it. Money is released by Rera after it assesses the project’s construction having met the required percentage.
"Developers want to complete their projects with many of them wanting to start selling only after the project nears completion. This shows that the industry has matured over the time.”
Among the guarantees sought is 100 per cent of the land cost to be paid by the developer, a minimum of 20 per cent of the construction cost to be deposited with Rera with contractors having to pay another 10 per cent of the construction cost. Link
He revealed that Dh29 billion are being held escrow accounts which reflects confidence of developers and investors’ in the market.
It is compulsory for every developer in Dubai to open an escrow account under Law No. (8) of 2007 concerning escrow accounts for real estate development. All the payment received from investors has to be deposited in it. Money is released by Rera after it assesses the project’s construction having met the required percentage.
"Developers want to complete their projects with many of them wanting to start selling only after the project nears completion. This shows that the industry has matured over the time.”
Among the guarantees sought is 100 per cent of the land cost to be paid by the developer, a minimum of 20 per cent of the construction cost to be deposited with Rera with contractors having to pay another 10 per cent of the construction cost. Link
Comments
Post a Comment