The trust accounts of several major property developers have been frozen until they can prove that construction is progressing and the land has been properly registered, officials said yesterday.
The Dubai Real Estate Regulatory Authority (Rera) has frozen the escrow accounts in an effort to protect investors’ interests as the property market grapples with falling prices and a shortage of lending. By law, all money made from the sale of off-plan property must go into an escrow account, to be used solely for the construction of the property.
Marwan bin Ghalita, the chief executive of Rera, said the developers in question needed to provide technical reports detailing the progress of construction before they could withdraw money from the accounts. “There can be no withdrawal until they have completed the technical report,” he said.
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