Recently the long awaited Dubai Strata Regulations have been published as issued with effect of 13 April 2010 in the form of directions. They comprise of Directions for General Regulations, Directions for the Constitution of Owners Associations and Directions for Joint Owners Property Declarations. Additional Directions for Surveyors and Directions for the Preparations of Survey Plans have also come into effect. The English texts are available on the RERA website: www.rpdubai.com

 

These strata directions have cemented a number of principles already practiced by RERA, the real estate regulator in the Emirate, for example the principle that developers may not levee any maintenance fees on their buyers without the approval from RERA. Next to that there are a number of clarifications and most importantly the directions aim to give the necessary guidelines for the constitution and operation of Owners Associations. Owners Associations, once in place will shift the responsibilities with regards to maintenance of common owned properties to the owners. It is expected that this will help regulating and appeasing a market that is constantly ruptured by ongoing and unsolved disputes between buyers and developers. Whether the strata regulations will have the desired effects and to what extent, and whether the market is ready for home owners associations taking their matters in their own hands, remains to be seen.

 

Dubai stands at the forefront in the UAE from a regulatory perspective. However, the market is still struggling with the unsolved issues stemming from the financial crisis and from contractual relations entered into prior to the coming into force of its current laws and regulations. However, these issues set aside Dubai has the best regulatory framework for real estate in the MENA region as currently confirmed by the Emirate notching top spot on a relevant regional transparency index.

 

For further information please contact: axel.jacob@fichtelegal.com