Yet more property related laws to be introduced in Dubai
According to “The National,” a major Dubai newspaper, Dubai is expected to release yet another set of laws governing the property industry. There is a growing number of disputes between small property investors and developers in Dubai and prices continue to fall. This is what The National has to say:
Dubai’s first property auction took place last night, and not a single one of the four properties up for auction was sold. On the block were three villas in Arabian ranches and a penthouse in Jumeirah beach. Bids were received on only two properties, but both failed to sell. Prior to the auction, the organizers were excited to be able to “see a true reflection of the current market value,” so it seems the current market value is somewhere below the reserves.
The hastily-introduced law No 9 in Dubai heavily favors property developers, and prevents any investors from pulling out of deals, without good reasons while allowing developers to cancel, rearrange or renegotiate the deal. The key points are:
With more financially distressed property on the market than you can shake a stick at, real estate auctions seem to be the best way of moving excess inventory, and will hopefully give some idea as to current market prices in the UAE. At the moment it is anyone’s guess. Sherwoods are organizing an auction of some 50 properties in the UAE in June. Their press release is below:
