Strata Law to build real estate confidence says BCS

Regulatory improvements in the real estate sector like the new strata law, will help shore up investor confidence in UAE real estate and reassure lenders on the sustainability of the market, Peter Crogan, Chief Executive Officer of BCS Strata Management Services told the GCC Home Summit today.

Addressing the four-day summit at the Dubai World Trade Centre on its final day, Crogan said the strata law will bring more transparency and accountability to the property market, thereby providing much needed confidence at a time when the real estate sector is under siege.

"Strata laws protect investment in real estate as it lays down protocols on property management and developer-buyer relations. This in turn will support the return on investment, which will help the market stay vibrant despite the current global economic slowdown," Crogan said.

Strata Law defines the responsibilities of property owners, and developers in the management of common areas and amenities in multi-owner developments such as apartment buildings, gated communities and multi office developments.

Dubai has announced plans to enact a strata law under the name 'Dubai Condominium Law' and other property markets in the region are also moving in this direction.

Crogan said the ultimate aim of the strata law is to safeguard the interests of the consumer by making previously undisclosed information available. For instance, as per the law, developers have to disclose proposed service providers to the Owners Associations, the cost of the services and whether the provider is a related entity to the developer. Buyers can also inspect the records of owner's association before purchasing property.

"Strata law is an assurance from the developer on unit delivery and transparency in dealings as well as a reaffirmation of the buyer's right to know valuable detail and information. This is international best practice and the integration of this into this country's real estate sector will help lift the mood in the market and build confidence and attract foreign investment," said Crogan.

With over 15 years of experience, Crogan is considered an authority in strata management. A renowned commentator and author of feature articles on strata laws, Crogan is also working with the Real Estate Regulatory Agency (RERA) in Dubai to educate over 3,500 real estate agents in strata management services.