British property investors who bought off-plan homes in Dubai which were never completed can expect to receive their money back after regulators ordered Dubai property developers to refund all deposits to purchasers on projects in the emirate which have been scrapped.
With a number of proposed Dubai property schemes having been cancelled due to the economic downturn and a fall in residential demand, the Real Estate Regulatory Agency (Rera) has stepped in to protect buyers and install a greater sense of transparency, ensuring that investors will get part or all of their funds back.
Many Brits purchased homes in Dubai during the off-plan stage of construction before the market crashed in 2008. But while some Dubai property developers have opted to complete projects rather than face a legal obligation to return all advance payments to customers, others have simply stalled.
Out of more than 450 projects reviewed by Rera, 237 will be completed, according to a Dubai government bond prospectus. Consequently, Dubai has cancelled 217 property projects in the past two and a half years, according to a two-year review of the industry.