Dubai developers need to put 20% of project value in escrow
dubai — In response to recent media reports, the Dubai Land Department (DLD) has clarified that developers only need to deposit 20 per cent of the project’s value in escrow ahead of launching off-plan sales.
They also need to verify ownership of the project and pay its value in full, in addition to receiving all approvals from competent authorities, according to a DLD statement issued on Thursday.
Sources had told Khaleej Times on Tuesday that a proposal was being mulled which would force developers
There is a strong coordination among all relevant government institutions... developers and various parties to establish confidence
Sultan Butti bin Mejren, Director-general of the DLD
— state-backed ones were reportedly exempt — to launch offplan sales only once construction had reached the 50 per cent mark. This was to reduce the pace of offplan launches in Dubai.
But in the latest statement, there was no mention of any plan to raise the 20 per cent limit to 50 per cent as a pre-requisite for developers to launch sales.
Sultan Butti bin Mejren, director-general of the DLD, said: “There is a strong coordination among all relevant government institutions, including the DLD, as well as between developers and various parties in the market to establish confidence among investors and achieve the highest degree of transparency in Dubai’s real estate market.”
The DLD said 150 new projects were registered in Dubai during 2017 at a combined value of Dh82 billion and that 90 projects were completed during the period.
— deepthi@khaleejtimes.com