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Dubai issues new payment rule
Dubai's Real Estate Regulatory Agency (Rera) has issued a new rule which says developers can collect no more than 20% of the cost of a property from a buyer until construction begins, reported Emirates Business. 'We have sent out letters to 100 developers - as well as having meetings with them and lending banks and institutions - telling them to take payments from buyers worth only up to 20% of the contract value,' Essa Saeed Ahmed Al Mansoori, Head of the Trust Accounts Section at Rera's Real Estate Development Trust Account Department, told the daily. Rera has set up an 11-member Real Estate Development Trust Account Department that will supervise and monitor the construction process and ensure the escrow amounts are collected in accordance with the agreed schedule.



"We have sent out letters to 100 developers - as well as having meetings with them and lending banks and institutions - telling them to take payments from buyers worth only up to 20 per cent of the contract value," Essa Saeed Ahmed Al Mansoori, Head of the Trust Accounts Section at Rera's Real Estate Development Trust Account Department, told Emirates Business.

"With properties that are already being built, developers who have collected more than 20 per cent of the contract value from buyers will immediately have to stop asking for further payments until they correlate the escrow amounts already collected to construction progress."

Rera has set up an 11-member Real Estate Development Trust Account Department that will supervise and monitor the construction process and ensure the escrow amounts are collected in accordance with the agreed schedule.
[AMEInfo.com]

Danube reports Dhs1.1bn in sales revenues
Dubai-based Danube Building Materials says it has generated Dhs1.1bn ($300m) in sales revenues during 2008, according to a press statement. This represents a 70% increase compared to 2007. Officials said they were confident in the company's ability to ride out the recession, and expected to secure a 30% rise in revenues for next year. [AMEInfo.com]

New course offered on Dubai Strata Law
Dubai Real Estate Institute has announced that it will be offer a new course titled 'Implementing Dubai Strata Law', providing participants with an in-depth understanding of the law's key clauses, specifically on shared property management, according to a press release. The four-day course will be held from the 26-29 January at the DREI campus.

[AMEInfo.com]

Aldar and Sorouh tie up with RAKBank
Aldar and Sorouh Real Estate have signed agreements with RAKBank to launch a mortgage finance service. The agreement offers up to 90% mortgage finance and a 25-year loan tenure for a large number of existing and upcoming properties in Abu Dhabi. Projects include Al Raha Beach and Yas Island by Aldar, as well as Sorouh's Shams project on Reem Island. [AMEInfo.com]

Union Properties to sell $680m convertible bond
Union Properties plans to sell convertible bonds worth Dhs2.5bn ($680m) to 'strategic investors', the Dubai-based developer said in a statement to the Dubai Financial Market. The company's board sought approval from the Emirates Securities & Commidities Authority for the bond sale.
[AMEInfo.com]

Nakheel axes new projects
Chris O'Donnell, chief executive of Nakheel, has said the developer has no plans to launch any new projects, as sales are slowing down. Last month Nakheel announced plans to reduce its workforce by 15%, but has since said it is not planning on making any more redundancies. Nakheel is one of a number of Dubai developers which have cut staff, scaled back and reviewed projects as the global financial crisis hits Dubai's real estate sector. [AMEInfo.com]

Emaar Economic City to hand over residential units by Q1 2009
Emaar Economic City, the Saudi Arabian unit of Dubai's Emaar Properties, plans to hand over the first residential units to the owners in March, said Chief Executive Officer Fahd Al Rasheed. The company, which has sold 1,000 units in the Bay La Sun Village, had planned to complete the residential properties by the end of 2008. [AMEInfo.com]

Layoffs continue in Dubai property market
Layoffs by consultants and contractors in Dubai's real estate market are climbing, MEED has reported. Sama-ECH, the joint venture of local developer Sama Dubai and UK-based EC Harris, has laid off about 140 staff on Sama Dubai projects, and the local Al-Shafar General Contracting is making up to 1,000 redundancies, the magazine reported. [AMEInfo.com]

Qatar calls for green building code
Experts attending the recently held Qatar Today Round Table agreed on the urgent need to push for a green building code. It was recommended that contractors, designers, educational and financial institutions and government bodies work towards minimising the environmental damage caused by Qatar's construction activity. [AMEInfo.com]

Property sales down in Kuwait
Kuwait saw a 43% year on year drop in property sales in November, compared to the same period last year, with the value of those sales down by 30%. However, the National Bank of Kuwait said that not including sales conducted through agents, real estate sales volumes in November were at their highest since July. In total, there were 515 transactions registered - a rise of 77% compared to October - worth just under KD137m. Sales volumes rose 44% month on month. NBK said that November's growth was led by the residential sector, where sales volume and the number of transactions rose by 101% and 117%. [AMEInfo.com]