Latest news with #RERA
Web Release
an hour ago
- Business
- Web Release
Chestertons Reports 50% Surge in Commercial Leasing as Legal Reforms and Investor Confidence Accelerate UAE Real Estate Momentum
Chestertons MENA, one of the world's most established real estate advisories, has released new data confirming a sharp rise in commercial real estate activity across the UAE. The firm's Q1 2025 Market Report shows a 50.4% year-on-year increase in commercial leasing, alongside double-digit growth in villa and townhouse transactions — underscoring the powerful convergence of market demand, investor confidence, and regulatory readiness. Office leasing led the commercial sector, recording over 101,000 transactions — a 62.7% increase compared to Q1 2024 — while retail leasing saw 36,000 transactions, amounting to AED 3.4 billion. Land leasing also posted steady gains. The data points to robust corporate expansion, growing business formation, and sustained appetite for commercial space across key UAE zones. 'Commercial real estate is no longer a peripheral category — it's at the centre of the UAE's next economic chapter,' said Mohamed Mussa, Executive Director of Chestertons. 'What we're seeing is not a temporary rebound but a redefinition of the region's investment profile. From the performance of off-plan markets in Ras Al Khaimah to the legal reforms enabling long-term ownership, this is an ecosystem ready for scale.' These trends were unpacked during Chestertons' Commercial Conference held in May 2025, which brought together senior leaders across valuation, advisory, and legal practice. The panel included: Andrew Elliott , Director of Commercial Agency , Director of Commercial Agency Benjamin Cullum , Head of Valuations and Advisory , Head of Valuations and Advisory Conor Henry , Director of Valuations and Advisory , Director of Valuations and Advisory Jake Wright , Director of Investment and Advisory , Director of Investment and Advisory Michael Kortbawi, Corporate & Finance Law Expert (BSA Ahmad Bin Hezeem & Associates LLP) The conference highlighted key structural enablers: 100% foreign ownership across most mainland sectors across most mainland sectors A newly introduced 9% federal corporate tax , with 0% options for qualifying free zone income structures , with 0% options for qualifying free zone income structures Expansion of investor-friendly zones such as RAKEZ , which is set to overtake JAFZA in activity , which is set to overtake JAFZA in activity Long-term renewable lease models, digital incorporation platforms, and streamlined dispute resolution through RERA , DIFC , and specialized courts , , and Increasing demand for REITs, sale-and-leaseback structures, and institutional-grade commercial assets amid Grade A supply constraints 'Recent legal reforms have shifted the UAE from being merely attractive to being strategically compelling,' said Lawyer: Michael Kortbawi, Corporate & Finance Law Expert and panelist at the Chestertons Commercial Conference. 'Investors now have clarity on ownership, tax, and dispute resolution, along with access to digital tools and long-term visas. This is a legal framework built for global capital and long-term business planning.' Residential demand also remained strong. Townhouse and villa transactions rose 51.93% in volume year-on-year, reaching a total value of AED 76.5 billion, while apartment sales climbed 16.25% in value to AED 75.1 billion. Buyer appetite was concentrated in communities such as JVC, Business Bay, and Dubai Marina, driven by location, lifestyle, and long-term rental yield potential. Rental activity reflected similar growth. Apartment leasing was up 21.4% year-on-year, totaling AED 11.3 billion across 151,000 rental transactions, while villa and townhouse leasing rose 21% in value to AED 3.4 billion. The report attributes these trends to population growth, long-term residency programs, and a shift toward larger living spaces post-COVID. 'Across every segment — commercial, residential, leasing, and investment — the UAE is showing clear signs of structured, sustainable growth,' added Mania Merrikhi, Chief Operating Officer and Managing Director at Chestertons MENA. 'The legal infrastructure, investor protections, and macroeconomic vision are all working in tandem to create one of the world's most investible property markets.' Chestertons — established in London in 1805 and active in the UAE since 2008 — has built a deep regional presence from its headquarters in Dubai Marina. The firm's team of over 165 professionals offers services across brokerage, valuation, building consultancy, asset management, and market research, property management and investment advisory. In Q1 2025 alone, Chestertons reported a 155% year-on-year increase in MENA transactions, and is now targeting 220% regional growth by 2026.
Business Recorder
5 hours ago
- Business
- Business Recorder
Think tank seeks tax exemptions for construction sector
ISLAMABAD: An Economic Thinktank has strongly recommended Federal Board of Revenue (FBR) to exempt construction sector from advance taxes and sales tax in coming budget (2025-26) to reduce the overall burden of transaction taxes on real estate sector. According to a report of Economic policy & Business Development think tank on 'Housing and Construction Sector-Challenges and Recommendations', it has recommended the FBR to reduce transaction taxes burden during buying and selling of immovable properties. This is needed to deal with the housing deficit with 10 million units and growing day by day. Around 72 allied industries of the real estate sector are operating at only 30-40% capacity. The report revealed that the FBR should also simplify tax on deemed income basis under section 7E of the Income Tax Ordinance 2001 and implement an expeditious dispute resolution system. Overall the Economic Thinktank has recommended rationalization of tax regime on the real estate sector for 2025-26. The government should also develop comprehensive town planning framework, it recommended. The real estate revival is as a key driver of economic growth keeping in view its ability to generate employment, address critical housing shortages, and sustain 40-50 allied industries. Thinktank pointed out that the Real Estate Regulatory Authority (RERA) has been establishment, but not fully functional. To address the market irregularities and lack of regulation in the real estate sector, National Assembly had passed the 'Real Estate Regulatory Authority Act (2020)' to regulate the real estate sector in Islamabad. It also recommended that revival of Mera Pakistan Mera Ghar scheme requires urgent attention. It recommended to establish operational RERA with immediate effect; implement online building approval system; create digital mortgage platforms; develop centralized property database; implement blockchain solutions for transparent transactions; promote modular/prefab construction and develop green building standards. Thinktank has further recommended creating vocational training institutes with NAVTTC and TEVTA; implement standardized wage structures; develop safety training protocols; launch programs to retain skilled professionals and promote gender-inclusive workforce initiatives. Copyright Business Recorder, 2025
Daily News Egypt
14 hours ago
- Business
- Daily News Egypt
Egypt urged to establish real estate regulatory authority to boost market transparency, attract FDI
Mohamed Fouad, real estate expert and member of the British Egyptian Business Association (BEBA), has urged the urgent establishment of an independent Real Estate Regulatory Authority (RERA) in Egypt. He emphasized that such a body, modeled on successful international experiences in countries like the UAE and India, is crucial for creating a structured and transparent legal framework for real estate transactions. Fouad explained that RERA plays a central regulatory and legislative role in mature markets. It safeguards the interests of buyers, investors, and developers by issuing licenses, enforcing compliance, ensuring transparency, and overseeing project implementation according to approved timelines and budgets. 'In markets witnessing rapid urban expansion and increasing investment flows—such as Egypt—an independent regulatory authority is no longer optional; it's a strategic necessity,' Fouad stated. He highlighted that the absence of a unified regulatory entity in Egypt has led to overlapping roles between institutions, resulting in delivery delays, contractual disputes, and inconsistent enforcement. A RERA-style authority, he said, would bring order to the sector by clearly defining the roles and responsibilities of key stakeholders: the government, developers, and buyers. Such a body would also bolster investor confidence, both local and international, by ensuring accountability and reducing risks. Regulatory oversight would include developer classification based on financial and technical criteria, stricter controls on marketing and advertising, and protection of buyers from fraudulent or stalled projects. Fouad cited Dubai's RERA as a global benchmark, noting how it has transformed the city into a trusted international hub for real estate investment. He also pointed to India's experience, where the implementation of RERA reduced legal disputes by over 60% in its early years. Without an independent authority, Fouad warned, the Egyptian real estate market remains exposed to mismanagement, undermining its attractiveness to foreign investors—particularly Egyptians living abroad who demand a clear, reliable legal framework. He proposed that the new Egyptian RERA be established under the Prime Minister's office or the Ministry of Housing, in cooperation with the Central Bank of Egypt and the Financial Regulatory Authority. It should have wide-ranging legal and supervisory powers, including dedicated departments for licensing, compliance, evaluation, and dispute resolution. Fouad also stressed the importance of launching a unified digital platform to centralize information on licensed real estate projects. This platform would provide real-time updates on implementation status, developer credentials, licensing and contract details, and facilitate electronic applications and transactions—supporting Egypt's broader digital transformation strategy. In conclusion, Fouad reiterated that the creation of a Real Estate Regulatory Authority in Egypt is a national imperative. It is key to achieving transparency, safeguarding stakeholders' rights, and turning the Egyptian real estate market into a sustainable, globally competitive investment destination capable of attracting foreign currency and exporting real estate.
Time of India
2 days ago
- Business
- Time of India
Focus on connection with citizens, PM tells ministries; no celebration of 11th year
PTI file photo NEW DELHI: In a span of just a month, Prime Minister Narendra Modi has twice taken top central government bureaucrats and state chief secretaries by surprise by flagging public grievances that had reached him directly. On April 30, secretaries and chief secretaries attending a meeting under Pragati — the performance audit PM holds periodically — were surprised when Modi raised shortcomings in implementation of the Jal Jeevan Mission, an ambitious scheme to reach piped water to all households. On Wednesday, he again left them amazed when, during a review of the functioning of real estate regulators, he shared feedback that files in many RERA offices don't move unless 'vyavastha', a popular Hindu euphemism for pleasing the authorities, has been made. Senior officials said the two meetings, apart from providing a peek into the PM's continuing connect with the grassroots, were also symbolic of the government's decision to focus on problems which are holding up last-mile delivery of well-intentioned schemes. 'The push is towards on-ground engagement, where ministries and departments are to conduct focused drives, enrolment camps, and beneficiary interactions to strengthen access and awareness,' a senior govt source said. This also helps explain, sources said, why the 11th anniversary of the Modi govt passed without large-scale events or publicity campaigns. 'The spirit is not of celebration but of connection. The idea is to understand what more needs to be done and to do it better,' a government functionary said, adding that the PM has encouraged ministries to mark the milestone by 'listening and connecting'. This marks a shift away from the publicity campaign and advertisement blitz that has traditionally marked anniversaries. 'Ministries have instead been encouraged to use existing platforms and field networks to communicate achievements organically and prioritise authentic citizen's voices over packaged messaging,' the official said. Senior officials said the PM's observations on JJM and RERA were a clear signal to everyone to ensure that public grievances were redressed and impediments in the way of completion and saturation were removed. 'He made it clear that addressing public grievances is a top priority and cannot be treated as routine paperwork,' another senior bureaucrat said. In fact, the PM did not agree with the proposition of a chief secretary that they don't review the performance of a regulatory authority. He asked all chief secretaries to regularly review the performance of RERAs. TOI has learnt that at last month's Pragati meeting, Modi had directed the Jal Shakti ministry to dispatch 100-200 officers for on-ground verification of grievances. Sources said a large share of complaints related to no supply of water even after laying of pipelines, homes still waiting for taps within the premises, and bad quality water. Post this direction, the government has deployed 100 central nodal officers' (CNO) teams to inspect 183 JJM projects across 135 districts and the details of this were shared by cabinet secretary T V Somanathan at Wednesday's meeting.
Hindustan Times
2 days ago
- Business
- Hindustan Times
Homebuyers' guide: What you need to know about arbitrary payment clauses in builder agreements
In 2022, Ramesh Mehta booked an under-construction apartment in Pune. His builder-buyer agreement stated that each instalment would be due on 'completion of the corresponding construction milestone or 60 days from the date of booking, whichever is earlier.' The second instalment was tied to the completion of the first-floor slab. However, the builder demanded payment just 60 days after booking, even though the slab work hadn't started. Since the clause allowed it, Mehta was forced to pay despite no visible progress. Later, construction stalled for months, leaving him financially strained with no assurance of timely possession. This example highlights the importance of thoroughly understanding all aspects of the purchase, especially when buying property in India. Go through the timeline of payments to the builder as mentioned in the agreement. The 'whichever is earlier' clause typically links payments to either the achievement of a construction milestone or a pre-decided calendar date—whichever occurs first. 'If the date arrives before the milestone is achieved, the buyer is still obligated to pay, even if the project is delayed. This can place an undue financial burden on the buyer,' says Jayesh Rathod, co-founder and director, The Guardians Real Estate Advisory. In property sales agreements, the clause of 'whichever is earlier' usually pertains to payment deadlines of a fixed period, such as three months, or an event which involves loan disbursement, approvals, or when the seller has met their obligations. 'If this event takes place ahead of the fixed period, the buyer will be required to make an immediate payment and not doing so may result in forfeiting of the amount paid in advance, or the agreement is terminated,' says Santhosh Kumar, vice chairman, ANAROCK Group. Although developers often support their demand notices with progress photographs and certifications from project engineers or architects, it is critical that the sale agreement explicitly requires that such demand notices be substantiated with certified proof of milestone achievement. 'From a buyer's standpoint, aligning payment schedules with actual project development helps avoid premature cash outflows, prevents EMI burdens on under-construction loans, and provides greater financial flexibility,' says Shubhi Jain, principal partner and head of CRM, Square Yards. 'You may receive a notice of payment default and not actioning it may result in penalties, interest being levied, or even the booking cancelled,' says Kumar. 'Much depends on how clearly the milestones are mentioned in the agreement. If they are ambiguous or misleading, you may be able to find recourse with Real Estate (Regulation and Development) RERA or consumer forums,' says Kumar. Under RERA, buyers in India have a legal right to negotiate their payment terms. The law promotes payment plan systems that are construction-linked rather than linked to arbitrary dates. 'To get this right financially, the payment should be linked to the completion of the verified stages of construction—slab completion, internal finishing, or any such step that can be financially measured. Whenever any request is presented forthwith to the developer, he does entertain the request. It would indeed be advisable to get legal advice during the drafting of the agreement and ensure that the schedule of payments is drafted in your favour,' says Rathod. 'It is advisable to negotiate for payment triggers that are linked to specific, tangible milestones, such as completion of certain floors, receipt of the Completion Certificate (CC), or formal application for the Occupancy Certificate (OC),' agrees Kumar. Also Read: Donald Trump's 5% tax on remittances: Should NRIs fast-track real estate investments back home? A payment clause that is flexible and based on milestones thus reduces the risk of premature payments. Anagh Pal is a personal finance expert who writes on real estate, tax, insurance, mutual funds and other topics
