Reclaiming Dubai Property Deposits
On the back of recent revelations on the ability to apply for a Spanish property deposit refund, we’ve had a slew of queries with reference to reclaiming Dubai property deposits. Unfortunately, the legislation enabling investors in Spanish property who did not have properties built to reclaim their funds is unique to Spain, similar legislation does not exist in the United Arab Emirates. At least not yet in any case. If such legislation should be introduced here we’ll be the first to bring you this news.
It is, of course, disappointing to report that reclaiming Dubai property deposits is not quite as straightforward as it has now become in Spain. This does not mean, however, that your contract to purchase is not worth something. It most certainly is. Here at SellDubai.co.uk we’ve been selling on contracts for uncompleted properties for years.
The main difference is that the properties in Dubai must still be viable and with the prospect of at some stage being built. You can see from our post on abandoned Dubai property projects, there is a significant list of properties that will never be built. If you’ve invested in one of these I’m afraid we can’t be of assistance and neither can anybody else. You’ll have to resort to taking legal action to recover your funds and even that is not a guarantee of being successful.
On the other hand, on the back of refinancing initiatives such as the Tanmia and Tayseer initiatives, some of which is funded by Dubai’s Real Estate Investment and Promotion Centre (REIPC), quite a few projects have come back to life and will now be built.
This is very good news for anybody who has invested in one of these projects as it means that your deposit, or the funds you have paid over for your property, is now once again worth something.
People may complain that they will lose some of the money they put into the project, where as with the Spanish property deposit reclaim they will get back all of their funds. This is not strictly true. When you seek to have a reclaim processed in Spain you can lose as much as 40% of the invested funds in the reclaim process. In many cases, those selling on their interest in a property in Dubai get about the same percentage as those looking to recover deposits in Spain.
Also, the recovery process in Spain is painfully slow. It can take up to 18 months to recover your funds. In many cases people invested in these properties 10 or more years ago. It is a long time to wait to get your money back.
If you choose to sell on your interest in a property or project in Dubai we can get a quote for you in less than a week and, if you accept the offer, the deal will be closed within a matter of months.