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RERA refutes media reports on Dubai real estate market

Feb 12, 2009 - 11:48 -

WAM Dubai, 12th Feb. 2009 (WAM) -- Dubai Real Estate Regulatory Authority (RERA) has denied receiving a letter signed by 300 real estate investors, developers and advocates expressing their concern over the fate of their investment in the Emirate of Dubai.

In their letter, they demanded RERA to immediately act before prices in the real estate market crash, according to a report published by Zawya Dow Jones news website, which also blamed the RERA CEO of declining to comment on the issue.

Marwan bin Ghalita, CEO of Dubai Real Estate Regulatory Authority (RERA), branded the news as absolutely untrue. ''Personally, I did neither receive a letter of this kind nor any call from the said news website or other,'' he affirmed in a statement to the Arabic daily Al Bayan.

According to him, local and foreign media outlets coordinate with RERA's Marketing, Communications and Media Department which also didn't get any call in that regard. ''We are adopting an open-door policy and any media outlet or investor can easily approach us.

He added that RERA could not have made any regulatory achievements in the real estate market if it had not been keeping regular contacts with developers, brokers and investors alike.

The Zawya Dow Jones news service also said the petitioners demanded RERA to take measures to bring the situation under control especially following the spell of financial investigations in several property companies, a move which raised questions about RERA standards.

Commenting on this, the RERA CEO said this point comes to serve interest of the investor, emphasising that :'' The investor should feel happy when he sees the authorities hit with an iron fist all those who put interests of the city and investors at risk. It's illogical that such a measure could feed concerns .......on the contrary it should send a message of confidence and assurance across the board.

And this is what we have really sensed during our meetings with investors.

''Maintaining a well-regulated market that provides protection to all stakeholders is one of our top priorities,' he stressed.

He explained that RERA had, since its creation about one year ago, been taking tremendous efforts to regulate the real estate sector by issuing flexible regulations at bar with the highest possible level of transparency.

''Loss of investor's rights is a red line .........it has not happened and it will never happen in Dubai real estate market ........RERA has completed registration of developers and brokers at its records to preserve their rights.

''We understand the feelings of worry resulted from the impact of the global financial crisis but we are against the unjustifiable panic, exaggeration and hitting under the belt by some for the sake of making illegitimate ends,''he underscored.

Answering a question about a list being circulated on the internet about tens of cancelled or delayed developments, the RERA CEO affirmed ;''The list was not accurate and not true simply because it was not issued by RERA, Department of Lands or any official relevant body. Those behind the list are only seeking to raise fears and panic so as to make narrow gains.

He appealed to investors not to hesitate in calling RERA to know the update of any project. ''The investor can log on the RERA website to acquaint himself with the progress of the project he invests his money in instead of lending a sympathetic ear to rumours and baseless reports.

RERA, he noted, had recently conducted a blanket assessment of developers and developments carried in Dubai and demanded all investors to register their rights at the Lands Department so as to take legal procedures.

''We didn't announce any cancellation of projects especially those sold to investors and this is a stabilising factor which can contribute to further boosting confidence in the vibrant real estate market in Dubai.

Sending a message of assurance to investors, he said RERA will never allow developers to breach real estate laws especially the escrow account system.

WAM/TF