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Travel Directory / Middle East / Dubai / Real Estate & Property

Dubai Real Estate

Since the new Dubai property law stating that the foreigners may own a property in Dubai has been signed, the real estate market has been rapidly intensifying every passing day. As of now, buying a real estate property in the emirate is a great investment opportunity. However, the marketing process is still largely unregulated. There are still some risks for the potential investors. It is therefore advisable that before making a final deal you have to be knowledgeable in choosing the right real estate agent. Ask for the help of a reputable real estate consultant to help to prevent the costly pitfall.

Dubai has a reputation for being a country having a hassle-free and transparent real estate industry. However, there is still a need for the assistance of excellent lawyers. Buying a real estate property is a serious business, especially here in Dubai. Although the country has this reputation, there are still many complexities when you talk about purchasing properties to be your form of investment. There should be no signing of contract or whatsoever on the part of the investor unless he has sought legal advice from a reliable lawyer.

When the real estate rush started, the Land Department of Dubai as well as its government, noticed that real estate malpractice has increased over five percent. This happened for the first two years alone since the new Dubai property law became effective. In July 2007, a new property law was issued by the Dubai government. The new law is known as the Law No. 8 on Guarantee Accounts. It is popularly recognized by the latent buyers as the trust or escrow accounts. Under this new law, buyers who want to purchase real estate properties in Dubai as a form of investment should deposit their payments into special accounts. The special accounts are created specifically made for real estate imbursement are usually managed by the bank. This is to avoid dealing with fraudulent property developers who usually asks for cold cash and without issuing legal receipts or documents stating that the payment has been made.

This law is a major action that would protect the real estate consumers of Dubai who usually buys off plan in the emirate. Aside from the mentioned condition, developers having ongoing projects should produce a certificate. This certificate must prove that the construction has reached a certain stage before the trust manager will give them the access to the payment of the buyer. This would definitely encourage the real estate property developers to keep on building and to meet the turnaround time. This would also give confidence to the companies knowing that they can get the money from the bank. They too will ease their fears from fraudulent buyers as well.

According to Mohammad Sultan Thani, as the director of the development and marketing administration of the Land Department in Dubai, they must always consider the safety of the real estate buyers especially foreign investors. They know that sooner or later, the real estate industry in their emirate will increase as much as 50 percent. They must take precautionary measures to keep the number growing. And of course to set the minds of the potential buyers at ease knowing that they are purchasing a costly investment in a safe place.

As of now only Islamic Bank has launched the account service. They called it the Al Islami Escrow Account. This is the first account in Dubai that is specially created for the real estate developers. The government of Dubai as well as the Land Department is expecting several more banks to follow before the end of the year 2007.