Luxury private developer DAMAC Properties is in the final stages of compliance with Dubai's so called 'Strata Law' ahead of RERA's January 13 deadline for the completion of Full Disclosure Statements.
DAMAC Properties has now prepared the required 'Full Disclosure Statements.' It was also one of the first developers to submit “Jointly Owned Property Declarations,”for all of its completed projects, to Dubai's real estate regulator. Separately, DAMAC Properties is now in the final stages of establishing Owners Associations for its completed projects, and is currently one of only three developers in Dubai to have an Owners Association granted RERA's approval for registration.
“DAMAC Properties has a dedicated Facilities Management team to see that we meet the new regulatory requirements and we are pleased with our progress” said Niall Mc Loughlin, Senior Vice President of DAMAC Properties.
The 'Strata Law' was introduced in 2007, with three new directions issued in April of last year. The new directions outlined the requirement for developers to provide full disclosure statements about all of their projects in Dubai, as well as prepare Jointly Owned Property Declarations, which include definitions of internal floor space and share of ownership of common areas. The third direction outlines the framework for establishing Owners Associations.
“These new laws have taken time to work through, but we are now well advanced in complying with all RERA requirements. One of the challenges is facilitating the establishment of functioning Owners Associations. This is a new concept for Dubai, but one that will add greater confidence to the market” Mc Loughlin added.
Every Owners Association must have a board, with a minimum of three members and maximum of seven, with three reserves. To be eligible for a position at the table, the board members must be owners, or their duly authorized representatives. The board will elect a Chairman at the first meeting after their election.
Owners Associations will take over responsibility for all contracts and payments relating to the management, maintenance, service and operation of the building. Owners Associations will most likely appoint a professional 'Association Manager,' who will manage all commercial operations on behalf of the Owners Association and Board.
“Developers are handing over the authority for making decisions about the future upkeep of the property to the people who have a vested interested in ensuring it's properly maintained. Similar organisations exist everywhere else in the world, and now Dubai will be no different” said Mc Loughlin.
DAMAC Properties has played a leading role in facilitating the establishment of Owners Associations for all of its completed projects. “DAMAC Properties welcomes RERA's new regulatory framework as it further increases transparency in Dubai's real estate sector, and will enhance the investments of home owners by boosting confidence in the market. These changes will help in continuing to make Dubai an attractive place for all investors” Mc Loughlin elaborated.
Dubai's property market is expected to revive this year according to analysts at Credit Suisse. A recent report found the real estate market is stabilising, and should begin to gain traction on the back of improving domestic economic and financial conditions. Changes to the regulatory framework of Dubai's real estate sector will also contribute to rebounding confidence in Dubai's real estate market.