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Rating developers.. an urgent need

Walid Al Zarooni

March 07 2022

The investment environment within the real estate sector in the Emirate of Dubai is developing faster than other environments around the world, which makes the existence of a classification for real estate developers easy and can be applied, and increases the competitiveness of the market, the most developed and ready at the regional level.

Similar to the classification of real estate brokers’ offices, which was launched by the Real Estate Regulatory Agency (RERA), the regulatory arm of the Dubai Land Department, in 2016, the sector is awaiting the issuance of the classification of real estate developers, to improve the performance of the sector and apply the best international standards in providing the best services to make customers happy. In the market.

In recent years, dealers and market parties have witnessed a study of a draft law to classify real estate developers in Dubai, but it has not yet seen the light of day.

I believe that the current conditions are ideal and very appropriate for launching the rating at a time when the emirate is achieving record levels, month after month, of sales and real estate transactions, while attracting more foreign investors.

Certainly, the classification will be subject to several important criteria, which may include the size of the company, its financial solvency, technical ability, the quality of its real estate projects, the extent of commitment to deliver projects on time without delay and adherence to the regulations governing off-plan sales, as well as the quality of projects developed by the company.

Issuing such a classification will have a role in increasing the standards of transparency in the market, and will increase the commitment of companies to get the best scores, and thus will gain the confidence of buyers and thus sell the largest share in the market, which will raise competition between developers, each other, and this will ultimately be reflected in the benefit end dealers, and reduces the manipulation of investors' funds.

The criteria, on the basis of which the classification will be launched, must also include the need to differentiate between those who build a property, and those who build a project and its infrastructure, so that there is monitoring of the quality of the infrastructure and the comfort it provides to users.

It requires the participation of Dubai Municipality, within the new classification, to determine the extent of the developer's contribution to the infrastructure of the projects.

In order for the expected classification project to receive a strong response from dealers, brokers and developers, it must be put forward for community dialogue and opinion polling, so that each entity associated with the real estate market demonstrates the basic criteria that must be met by a successful developer, and this in turn will have a very positive impact on the market.

• Looking forward to the issuance of the real estate developers' classification, to improve the performance of the sector and apply the best international standards. 

Chairman of the Board of Directors of “W Capital Real Estate Brokerage Company”

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