Skip to content

New ranking system for property developers to be introduced in Dubai

The new system is being introduced in an attempt to reduce the number of developers and reinforce investor confidence in the sector which is currently suffering from a dent in confidence.

'We are evaluating all the developers in Dubai. All will be graded according to their financial liquidity, their experience in the market, the number of projects and the added value they give to the community,' said Marwan bin Ghalita, the chief executive of Rera.

'So before people invest in a project, they will see what the rating of the developer is and will be able to base their decision on that,' he explained.

It is one of several new initiatives being introduced by the regulatory authority. It will be followed by a regulation requiring developers registering off-plan projects to fully own the land first.

There is concern that the number of developers in Dubai has increases so much in the past six years that it can be difficult for property investors to work out who is best for them and investor confidence, particularly in off-plan projects, has been harmed by several cases of developers failing to go ahead with projects or not to delivering on time.

Officials at Rera believe there are over 100 developers and they need to be reduced to a more manageable level.

'There are too many developers. We need to make the number smaller so we can control them more and they can serve the market better,' added Ghalita.

Other new initiatives include regulations banning freelance property agents from operating in Dubai.

Any broker who wants to set up business will have to be over the age of 18 and obtain a good-conduct certificate from Dubai Police. Brokers also will have to take a Rera training course.