DAMAC Properties in the final stages of Strata law
Deadline for completion of Full Disclosure Statements is January 13
DAMAC Properties claims it is in the final stages of compliance with Dubai's Strata Law ahead of RERA's January 13 deadline for completion of Full Disclosure Statements.
It said it is also 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 McLoughlin, senior vice president, DAMAC Properties.
The Strata Law was introduced in 2007, with three new directions issued in April last year. These outline 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,” added McLoughlin.
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 authorised 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 McLoughlin.
“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.”
A recent report by Credit Suisse found the real estate market in Dubai is stabilising, and should begin to gain traction on the back of improving domestic economic and financial conditions.